Hire employees in Australia. No entity needed.
Usually, to hire in Australia, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Australia also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Australia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Australia
built right in
Deel allows you to provide localized benefits for employees in Australia within minutes. All in one manageable online dashboard.
- Workers Compensation Insurance
- Private Health Insurance - GU Health (optional)
Our quickstart guide to hiring in Australia
Navigate the tabs below to learn everything you need to know about hiring an employee in Australia
Minimum Wage Requirements
Individual Income Tax
The individual income tax ranges from 0% to 45%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status, number of children, location, age, and marital status.
|Gross Annual Income||Tax Rate (%)|
|0 Up to AUD 18,200||0%|
|AUD 18,201 Up to AUD 45,000||19%|
|AUD 45,001 Up to AUD 120,000||32.5%|
|AUD 120,001 Up to AUD 180,000||37%|
|Over AUD $180,001||45%|
The employer cost is generally estimated at roughly 16.4-18.5% of the employee's salary. However, the total charge may vary depending on the state the employee lives in.
- Superannuation guarantee charge - 11.0%
- Workers cover - 0.14-1.0%
- Payroll tax - 4.95-6.85%
Overtime Pay & Maximum Hours
Pregnant employees who have worked for 12 months are entitled to 18 weeks of paid leave. The remaining days can be divided into periods of a minimum of 1 week. The employee will receive national minimum wage during this period and Social Security will be responsible for this pay.
The employee can extend leave additional 24 months unpaid via parental leave.
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Australia can be complex. There is no at-will termination in Australia for employers outside the probation period and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- Probation period
- Objective grounds
- Disciplinary dismissal
- Performance due to unsuitability for the job
- By the expiration of the contract
The minimum notice period is 1 week and will be increased according to the length of the employment.
- Less than 1 year of employment - 1 week’s notice
- 1 - 3 years of employment - 2 weeks’ notice
- 3 - 5 years of employment - 3 weeks’ notice
- 5 years of employment - 4 weeks’ notice
In case the employee is older than 45 years old and has worked for the same employer for 2 years, they will be entitled to an additional week of notice.
Severance for Employees
Severance pay will depend on the number of years an employee has worked at the company.
- Less than 1 year at the company receives no severance pay.
- 1-2 years = 4 weeks’ severance pay.
- 2-3 years = 6 weeks’ severance pay.
- 3-4 years = 7 weeks’ severance pay.
- 4-5 years = 8 weeks’ severance pay.
- 5-6 years = 10 weeks’ severance pay.
- 6-7 years = 11 weeks’ severance pay.
- 7-8 years = 13 weeks’ severance pay.
- 8-9 years = 14 weeks’ severance pay.
- More than 10 years = 16 weeks’ severance pay.
To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country. Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.
Paid Time Off
Australia celebrates 7 national and several regional holidays based on the location of the employee. National public holidays include:
- New Year's Day
- Australia Day
- Good Friday
- Easter Monday
- Anzac Day
- Christmas Day
- Boxing Day
Employment Contract Details
Contracts must be written in English. They must be in writing and signed by both parties.
The contract must include:
- Annual Salary, Position
- Roles & Responsibilities
- Commencement Date
- Pay Frequency, Termination
- Notice period
- Working hours, Bonuses
- Holiday leave
- Sick leave
- Long Service Leave
- Annual Leave
- Superannuation entitlements.
Employees hired using Deel have a probation period of 90 days, which you can extend up to 180 days. As of January 2022, it's Deel company policy to include probation periods in all employment contracts moving forward.
Probation periods help an employer and the employee ensure they're a hiring match, allowing a company to quickly decide if it's a fit or the employee to see if the job aligns with their career goals.
Hiring in Australia, hassle-free
With Deel, your business can easily hire employees in Australia. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
Estimate Employer Cost
*of employee salary