Article
10 min read
How to Hire Using an Employer of Record in Australia (2025 Edition)
Employer of record
Author
Ellie Merryweather
Last Update
June 27, 2025
Table of Contents
What is an Australian Employer of Record?
Top reasons to use an EOR in Australia
How to hire in Australia: Step-by-step guide
Employment compliance tasks an Employer of Record manages in Australia
How much does an EOR in Australia cost?
Which Australia EOR should you choose?
Is Deel Employer of Record a strong choice for hiring in Australia?
Hire employees in Australia confidently with Deel Employer of Record
Key takeaways
- Setting up an Australian entity to hire local talent can take months and could cost up to AUD $147,438 in legal, tax, and payroll setup.
- An Australian Employer of Record covers social security, taxes, contracts, and data protection under Australian labor laws, ensuring full compliance without the headache.
- Deel EOR owns its Australian entity for full control, supports hiring in 150+ countries, delivers transparent pricing, real-time compliance monitoring, and has top G2 ratings.
Hiring talent in Australia unlocks access to a skilled workforce in tech hubs like Sydney and Melbourne. However, setting up a local entity involves complex registration, payroll tax variations, and strict adherence to the Work Health and Safety Act 2011 and other laws and tax obligations.
An Employer of Record (EOR) simplifies this by becoming the legal employer on your behalf. Deel’s wholly-owned Australian entity and global platform manage payroll, benefits administration, and compliance monitoring, so you can focus on growth.
What is an Australian Employer of Record?
An Australian Employer of Record is an organisation that hires your talent in the country through its Australian entity so that you can skip the long and costly incorporation process and onboard new employees fast and compliantly.
This arrangement avoids the delays and costs of setting up a local entity and reduces risks like misclassification of independent contractors. Deel’s wholly owned Australian entity ensures compliance with laws such as the Fair Work Act and the Work Health and Safety Act 2011, supported by real-time compliance monitoring.
Continuous Compliance™
Top reasons to use an EOR in Australia
Expanding with an EOR in Australia offers these benefits:
- Seamless superannuation management: Automatic contributions on ordinary earnings without manual tracking.
- Payroll tax navigation: Manage state payroll taxes without juggling multiple revenue offices.
- Local compliance expertise: Stay compliant with working hours, fixed-term contracts, leave entitlements, including annual leave, and minimum wage requirements.
- Risk reduction: Avoid costly misclassification fines and employment disputes.
- Rapid time to hire: Onboard talent within days using Deel’s platform for contract generation and onboarding.
How to hire in Australia: Step-by-step guide
Follow this 8-step checklist to onboard employees in Australia quickly and compliantly with an EOR.
1. Choose an EOR with a wholly-owned Australian entity
Selecting an EOR with a wholly owned Australian entity guarantees direct compliance with federal and state laws, including payroll taxes and benefits administration. Deel’s Australian entity handles all statutory filings and regulatory requirements.
Tip: Verify the EOR’s entity registration number on the Australian Business Register.
2. Book a demo and verify social proof
Request a demo to see payroll runs, contract templates, and compliance dashboards in action. Check case studies and client testimonials for EOR services in Germany. Scan reviews on G2 and Trustpilot, where Deel EOR holds a 4.8/5 average.
Tip: Request a customer reference in your industry to confirm Australian payroll accuracy and compliance.
3. Request a transparent EOR quote
Get a detailed quote outlining superannuation, payroll taxes, and the EOR’s flat service fee. Deel’s transparent pricing means no hidden onboarding or termination charges.
Tip: Compare against your own entity setup cost to evaluate savings.
4. Submit a 12–24-month hiring plan
Provide your hiring forecast so the EOR can optimize workflows and statutory cost projections. Deel’s AI-driven workforce planning adapts to changes in laws and tax rates.
Tip: Update your plan quarterly to stay aligned with compliance budgets.
5. Create the employment contract in the platform
Use Deel’s contract generator to draft Australian-compliant employment contracts, including fixed-term and probation clauses. The EOR ensures contracts meet local labour laws and include statutory leave entitlements.
Tip: Customise probation periods (typically 3–6 months) to fit your review cycles.
6. Confirm the candidate's right to work
Australian law requires verification of work rights. Deel supports visa checks and work permits, filing eligibility documents on your behalf.
Tip: Collect certified proof of citizenship or visa status before extending offers.
7. Run the onboarding workflow
Complete background checks, superannuation fund enrollment, and payroll registration through Deel’s onboarding module. The EOR handles all mandatory notifications, including the Fair Work Information Statement.
Tip: Provide onboarding forms at least one week before the start date.
8. Maintain ongoing compliance
Australian employment laws and payroll taxes are frequently updated. Deel Compliance Hub alerts you to wage changes, tax updates, and regulatory shifts, automatically applying necessary changes.
Deel Employer of Record
Employment compliance tasks an Employer of Record manages in Australia
Your EOR takes on key employer obligations, ensuring you meet all statutory requirements.
| Category | Details |
|---|---|
| Statutory employer costs | Automatic 12% superannuation contributions (mandatory); payroll tax ranges from 4.75% to 6.85% depending on the employee’s region of residence. |
| Employment contracts & probation rules | Must issue Fair Work Information Statement on day one. Written terms required within one month. Probation periods typically range from 3 to 6 months. |
| Pay and working hours | Standard 38-hour workweek. Minimum wage is AUD $24.95/hour. Under the Fair Work Act, employees have the right to reasonably refuse to monitor or respond to work-related communications outside of their working hours. |
| Payroll compliance | Employers must withhold PAYG tax, remit monthly or quarterly, maintain payroll records for 7 years, and comply with data privacy laws. |
| Vacation and public holiday allowances | 20 days of paid vacation, with unused days carried over to the next year. Plus 7 national public holidays, to be taken in lieu if they fall on a weekend. |
| Income taxes | PAYG (Pay As You Go) system; employers must withhold on behalf of employees. Rates are progressive and set by the government based on income. |
| Expenses, allowances, and bonuses | All income, including bonus and allowances above the tax-free threshold, is subject to income tax. Expenses such as equipment and coworking spaces may be tax-free if submitted with the appropriate documentation. |
| Parental, adoption & foster leave | Paid parental leave is government-funded up to 24 weeks, set to increase to 26 weeks in 2026. |
| Sick leave, bereavement leave, and carer’s leave | 10 days paid personal/carer’s leave per year, usable as soon as they are accrued. Compassionate leave may be taken as a single continuous 2-day period. |
| Terminations and resignations | Notice periods range from 1 to 4 weeks, depending on tenure. Redundancy pay up to 12 weeks, depending on tenure. |
| Health & safety | Regulated at the federal and state level; employers must meet WHS obligations. |
| Misclassification risk | Significant risk: fines up to AUD 63,000 per breach for misclassifying contractors. Clear legal tests distinguish contractors from employees. |
| Data protection & IP protection | Governed by Privacy Act 1988. Employers own IP created by employees. Deel ensures IP clauses and data safeguards are in place. |
Discover how How Deel helps E-Bikes solutions provider Zoomo increase its speed to market
By offering an affordable, efficient transportation solution for delivery riders, Zoomo has raced ahead, working with big delivery industry names like Uber Eats, Deliveroo, and Doordash.
To support the global demand for delivery options, Zoomo has adapted by rapidly expanding its businesses worldwide. For them, expansion meant finding an Employer of Record (EOR) to grow their business beyond Australia. And who was in the sidecar to help them zip ahead? Deel.
"We chose Deel for its scale, efficiency, user-friendly platform, and haven't looked back." -- Saran Somaskanthan, Head of International Expansion at Zoomo
How much does an EOR in Australia cost?
You pay the employee’s gross salary plus statutory employer costs—11% superannuation and state payroll tax (4.75%–6.85%)—and the EOR’s transparent service fee. Deel offers a flat-fee pricing model with no hidden onboarding or termination charges, eliminating the pain of entity setup and costly surprises.
| Factor | Your own Australian entity | Deel EOR |
|---|---|---|
| One-off costs | $72,027 | $0 |
| Annual, recurring costs | $75,411 | $0 |
| Deel Employer of Record service fee | N/A | ($11,065 / Worker) |
| Estimated total annual costs | $147,438 | $11,065 |
| Time to first hire | 1 week | 1 business day |
Which Australia EOR should you choose?
Choosing the best EOR services in Australia depends on:
- Wholly-owned local entity: Ensures direct compliance and accountability under Australian law by removing third-party risk.
- Compliance expertise: Real-time monitoring and expert legal teams to handle audits and statutory changes.
- Platform capabilities: End-to-end management of employment contracts, payroll taxes, benefits administration, and global employment tasks.
Deel stands out as a top Australia Employer of Record with a fully owned Australian entity and a platform covering 150+ countries.
Is Deel Employer of Record a strong choice for hiring in Australia?
Deel removes the pain of entity setup and offers:
- Wholly-owned Australian entity for full compliance and local accountability
- Automated management of superannuation and state payroll taxes
- Support for Australian employment law, including working hours, leave entitlements, and minimum wage
- Risk mitigation for misclassification of independent contractors
- Rapid onboarding to hire employees in Australia within days
- Transparent flat-fee pricing with no hidden costs or termination fees
- Real-time compliance monitoring to keep you audit-ready
- Global platform supporting multi-country expansion
Deel’s Australia EOR service lets you hire faster and compliantly, so you can focus on growing your business.
We’ve been able to find, hire, and manage key roles without any hassle thanks to Deel’s intuitive platform and our very supportive account management team.
—Chantal Madi,
Head of People Operations at Immutable
Find out how Immutable are hiring the workers they need to power web3 Gaming, with Deel EOR.
Hire employees in Australia confidently with Deel Employer of Record
See how quickly you can onboard Australian talent without entity setup delays. Deel’s platform accelerates hiring and handles payroll taxes, benefits administration, and compliance with local labour laws seamlessly.
With transparent pricing and a wholly-owned Australian entity, you’ll avoid surprises and manage your workforce efficiently. Schedule your demo now and start hiring smarter with Deel.
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FAQs
How long does it take to onboard employees in Australia with an EOR?
Deel enables onboarding in days, managing contracts, work eligibility checks, and payroll registration efficiently.
Do employees need Australian bank accounts?
Yes, local bank accounts are required for salary payments, which Deel facilitates during onboarding.
What type of contracts does Deel provide?
Fully compliant Australian employment contracts reflecting local labor laws, working hours, leave entitlements, and probation terms.
How is tax withholding managed?
Deel handles PAYG withholding and superannuation contributions, remitting them timely to the Australian Taxation Office.
When are payroll deadlines?
Payroll tax and superannuation payments are due quarterly or monthly depending on the state; Deel automates filings.
What benefits are mandatory?
Deel ensures 11% superannuation, 4 weeks paid annual leave, and 10 days paid personal/carer’s leave per Australian law.
Can probation periods be customized?
Yes, Deel supports 3–6 month probation periods tailored to your company’s policies.
Does Deel help with compliance updates?
Yes, Deel Compliance Monitor provides real-time alerts on wage changes, tax updates, and regulatory shifts.
Can I hire in other countries besides Australia?
Deel supports 150+ countries with transparent pricing and compliance expertise for global employment.
How does Deel reduce employment risks?
As the legal employer through wholly-owned entities, Deel assumes employment liabilities and audit risks.
About the author
Ellie Merryweather is a content marketing manager with a decade of experience in tech, leadership, startups, and the creative industries. A long-time remote worker, she's passionate about WFH productivity hacks and fostering company culture across globally distributed teams.
