Hire and pay employees in
Australia, hassle-free

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.

July 1, 2024- June 30, 2025

The employer cost is generally estimated at roughly 16.85%-18.71% of the employee's salary. However, the total charge may vary depending on the state the employee lives in.

Superannuation guarantee charge:
- July 1 2023 - June 30 2024: 11%
- July 1 2024 - June 30 2025: 11.5%
- July 1 2025 - June 30 2026: 12%
Workers cover: 0.14-1%
Payroll tax: 4.95-6.85%

If healthcare benefits are offered to the employee, a mandatory fringe benefit tax will apply. The fringe benefit tax amounts to 47% of the health insurance premium multiplied by a gross-up rate of 1.8868.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Maternity leave no longer exists in Australia, it is just paid and unpaid parental leave that covers everything

Paternity leave no longer exists in Australia, it is just paid and unpaid parental leave that covers everything

Employees who have worked for 12 months are entitled to 20 weeks of paid parental leave and up to 24 months of unpaid parental leave. These leaves may be taken together. For paid parental leave, eligible employees will receive the national minimum wage for this time from the government.

From 1 July 2025, the Australian Taxation Office (ATO) will pay superannuation contributions of 12% to individuals receiving parental leave pay for children born or adopted on or after 1 July 2025.

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 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.

Australia celebrates 7 national and several regional holidays based on the location of the employee. National public holidays include:

1. New Year's Day
2. Australia Day
3. Good Friday
4. Easter Monday
5. Anzac Day
6. Christmas Day
7. Boxing Day

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.