Hire in Australia
Commonwealth of Australia — 26.5 million population, $64,490 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in Australia.
Capital
Canberra
Currency
Australian Dollar (AUD)
Languages
English
Time zones
UTC+8 (AWST), UTC+9.5 (ACST), UTC+10 (AEST)
Hiring overview
- Typical time to hire
- 1-3 weeks for contractor, 3-6 weeks for full-time
- Entity requirement
- Australian Pty Ltd. Registration at ASIC. ABN (Australian Business Number) required. Must register for PAYG withholding, Super, and GST if applicable.
- EOR available
- Yes — from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes — from $39/worker/month
Employment law
- Standard workweek
- 38 hours (National Employment Standards)
- Maximum weekly hours
- 38 hours
- Minimum annual leave
- 20 days (4 weeks; shift workers get 5 weeks)
- Public holidays
- 8 per year
- Maternity leave
- 18 weeks Parental Leave Pay (government-funded at minimum wage). Increasing to 26 weeks by 2026.
- Paternity leave
- Shared in the 18-26 week entitlement (Dad and Partner Pay of 2 weeks being folded into Parental Leave Pay)
- Notice period
- 1-5 weeks depending on tenure (under NES). Longer periods common by contract.
- Severance
- Redundancy pay: 4-16 weeks depending on tenure (NES). Small businesses (<15 employees) exempt.
- Probation
- Minimum employment period: 6 months (12 months for small businesses) before unfair dismissal protection applies
- Overtime rules
- Reasonable overtime requests permitted under NES. Modern awards set overtime rates (typically 1.5x first 2-3 hours, 2x thereafter).
Tax overview
- Income tax range
- 0% to 45% (tax-free threshold AUD 18,200). Stage 3 tax cuts effective July 2024.
- Corporate tax
- 30% (25% for base rate entities with aggregated turnover under AUD 50M)
- Social contributions
- Superannuation (Super Guarantee): 11.5% employer (2024-25, rising to 12% in 2025-26). No separate social security tax.
- VAT / GST
- 10% GST (broad-based, with exemptions for food, education, health)
- Tax year
- 1 July to 30 June
- Treaty network
- Over 45 tax treaties
Compliance landscape
- Worker classification
- Multi-factor test under common law. High Court decisions (Jamsek, CFMMEU v Personnel Contracting, ZG Operations) have shifted focus to the written contract rather than practical reality. Sham contracting provisions in Fair Work Act.
- Data protection
- Privacy Act 1988 (amended 2022). APPs (Australian Privacy Principles) apply to organisations with turnover above AUD 3M. OAIC enforces. Major reform (Privacy Act Review) underway.
- Right to work
- Visa with work rights required. Temporary Skill Shortage (TSS/subclass 482) for sponsored workers. Skills in Demand visa replacing TSS in late 2024.
- Non-compete
- Under federal review (2023-24). Currently assessed under common law restraint of trade principles. Enforceable if reasonable. Government has signalled intent to limit or ban non-competes for workers under an income threshold.
- Collective bargaining
- Enterprise bargaining under the Fair Work Act 2009. Modern Awards set industry minimums. Fair Work Commission oversees. Union density ~14%, concentrated in public sector and construction.
Payment rails
New Payments Platform (NPP/PayID) enables instant bank transfers 24/7. BECS (Bulk Electronic Clearing System) for payroll. Stripe Connect supports AUD natively. Superannuation is paid separately through approved clearing houses.
Key considerations for hiring
- Superannuation (employer-funded retirement) at 11.5% (rising to 12%) is a significant additional employment cost
- Modern Awards (industry-specific minimum conditions) cover most non-managerial employees and are legally binding
- Australia's skilled migration programme is a major talent pipeline: over 190,000 permanent skilled visas per year
- Sydney and Melbourne are Asia-Pacific's major English-speaking tech hubs outside the US
Business and cultural context: Australia
Business culture
Informal, egalitarian, and direct. Australians value authenticity and dislike pretension (tall poppy syndrome). Work-life balance is culturally important. Flat hierarchies in most workplaces.
Key industries
Talent pool strengths
Historical context
Australia's Fair Work system, established by the Fair Work Act 2009, replaced the controversial WorkChoices legislation. The system's foundation is the Modern Award: 122 industry-specific instruments that set minimum pay, overtime, penalties, and conditions for ~2.7 million workers. No other English-speaking country has a comparable system of legally binding sectoral minimums.
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