Hire and pay employees in

Australia, hassle-free

Hire and pay employees 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.

The average onboarding time frame in Australia is 2 days with Deel.

Currency

AUD

Capital

Canberra

Official Language

English

Payroll Cycle

Monthly

Onboard, pay and manage employees in Australia with Deel.

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.

Deel lets you hire employees in Australia quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

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

The minimum wage is  AUD $3825,46 a month (AUD $882.80 a week). However, the minimum wage may be higher for specific industries. Please see the following link to calculate:

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%

Payroll Cost

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%

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.

Overtime Pay & Maximum Hours

Standard working hours are 7.6 hours per day, 38 hours per week (1967 hours per year). The standard workweek is from Monday to Friday.

Maternity Leave

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

Paternity Leave

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

Parental Leave

Employees who have worked for 12 months are entitled to 20 weeks of paid parental leave and 24 weeks 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.

Sick Leave

Employees are entitled to paid sick leave for up to 10 days. Employees receive their normal wage during this period which will be paid by the employer.

Termination Requirements

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

Notice Period

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

Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) a year. PTO accrues monthly 1.67 days per month. Employees are eligible for annual leave after they have accused enough leave to take.

Public Holidays

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

Onboarding

Onboarding takes 2 business days after the client signs the SOW.

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.

Probation Period

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.

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Download the complete guide to hiring in Australia

Simply fill out your details below to gain access to our complete guide to hiring in Australia.

Hiring in Australia, hassle-free

With Deel, your business can easily hire employees in Australia with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Australia and 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

16.4%-18.5%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Australia?

View our Employee Cost Calculator

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