Hire compliantly in Australia. Navigate the 12% superannuation guarantee, a modern award system covering 121 industries and a Fair Work framework where unfair dismissal claims cost employers an average of AUD 12,000 to settle.
Capital
Canberra
Language
English
Average Salary
AUD 8,900
Payroll Cycle
Monthly
Employer Cost
14-20%
Paid Leave
20 days
Public Holidays
8 days
Tax Rates
0-45%
Hiring guides covering regulations, contributions and costs specific to Australia. Updated for 2026.
Australia has overhauled its working visa system. This guide covers every working visa Australia offers in 2026, from employer-sponsored and points-based skilled visas to Working Holiday programs, the proposed EU-Australia labour mobility deal, and how an Employer of Record can help you move to Australia even if you have not found a local job yet.
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Australia’s Payday Super reform takes effect 1 July 2026, requiring super to be paid with every payday instead of quarterly. Any provider still processing super on a quarterly cycle after that date is non-compliant from the first pay run.
Our assessment of providers in Australia evaluates superannuation accuracy, modern award compliance, Fair Work Act adherence and state-level payroll tax handling.
Australia's National Employment Standards (NES) set 11 minimum entitlements that apply to all employees regardless of award or agreement, including 4 weeks' annual leave, 10 days' personal leave and the right to request flexible working arrangements.
| Key Employment Facts | |
| Minimum Wage | AUD 24.95/hour (AUD 948/week for 38 hours, from 1 July 2025) |
| Probation Period | No statutory limit (typically 3-6 months contractual) |
| Standard Working Hours | 38 hours/week (NES maximum ordinary hours) |
| Paid Annual Leave | 20 days (4 weeks, accrues progressively) |
| Notice Period | 1-4 weeks (by tenure, NES minimum) |
| 13th Salary | Not statutory |
| Personal/Carer’s Leave | 10 days/year (paid, accumulates if unused) |
| Parental Leave | 12 months unpaid (NES) + 24 weeks government-funded Paid Parental Leave |
Good to Know: Australia has no statutory paid sick leave as a separate category. Instead, the NES provides 10 days of “personal/carer’s leave” per year that covers both sick leave and caring for a family member. This leave accumulates year-on-year with no cap, meaning a long-tenured employee can have 50+ days accrued. Unused personal leave is not paid out on termination (unlike annual leave, which must be).
Australia's employer cost structure is deceptively simple on the surface (12% super, no social security) but state-based payroll taxes, modern award penalty rates and leave loading can push total costs well above the headline percentage.
| Employer Contributions (FY2025-26) | |
| Contribution | Employer Rate |
| Superannuation Guarantee | 12% of OTE (capped at AUD 62,500/quarter) |
| Payroll Tax (state-based) | 4.75-6.85% above threshold (varies by state) |
| Workers’ Compensation Insurance | ~1-5% (varies by state and industry risk) |
| Leave Loading (if applicable) | 17.5% on 4 weeks’ annual leave (common in awards) |
| Total Employer Cost | ~14-20% above gross (depending on state and award) |
| Employee Taxes (FY2025-26) | |
| Tax / Contribution | Employee Rate |
| Income Tax (progressive) | 0% ($0-18,200), 16% ($18,201-45,000), 30% ($45,001-135,000), 37% ($135,001-190,000), 45% ($190,001+) |
| Medicare Levy | 2% of taxable income |
| Medicare Levy Surcharge (no private hospital cover) | 1-1.5% above AUD 93,000 income |
| Social Security / Employee Super | 0% mandatory (voluntary contributions only) |
Good to Know: Australia’s effective employer cost varies dramatically by state. Take an employee earning AUD 100,000 in Sydney: super AUD 12,000 (12%), NSW payroll tax ~AUD 5,450 (5.45% above threshold, prorated), workers’ comp ~AUD 1,500, leave loading ~AUD 1,350. Total employer cost: approximately AUD 120,300 or 1.20x salary. The same employee in Queensland triggers lower payroll tax (4.75%). In the ACT, it’s 6.85%. The super cap at AUD 62,500/quarter means employer super obligation flattens at AUD 7,500/quarter for very high earners, but few employees outside mining and finance hit that ceiling.
Australia has 8 national public holidays under the NES. Each state and territory adds 1-3 additional holidays. The Queen's Birthday date varies by state.
|
Date |
Holiday |
|
January 1 |
New Year’s Day |
|
January 26 |
Australia Day |
|
April 3 |
Good Friday |
|
April 4 |
Saturday before Easter Sunday |
|
April 6 |
Easter Monday |
|
April 25 |
Anzac Day |
|
Varies by state |
Queen’s Birthday (Jun 8 in NSW/ACT/SA/Tas, Jun 15 in Qld, Sep 28 in WA) |
|
December 25 |
Christmas Day |
|
December 26 |
Boxing Day |
Good to Know: The Queen’s Birthday is observed on different dates in different states. NSW, ACT, SA and Tasmania observe it on the second Monday in June. Queensland moved it to October in 2012 and then to the second Monday in June from 2024. Western Australia observes it in late September. Additionally, each state has its own holidays: Melbourne Cup Day (first Tuesday in November, Melbourne metro), Reconciliation Day (ACT, May 27), Recreation Day (northern Tasmania). Your payroll must apply the correct holiday calendar per employee’s state of work, not a single national list.
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