Hiring in Australia: Complete Guide 2027
Everything you need to know about hiring and managing employees in Australia
Overview
Australia is the largest English-speaking labour market in Asia-Pacific and one of the most codified. The Fair Work Act sets 11 National Employment Standards for every employee, and 122 Modern Awards add minimum pay rates, penalty rates and allowances by industry. Unfair dismissal protection starts after six months. Employer on-costs run 15–18% above gross: the 12% Superannuation Guarantee, state payroll tax where the EOR's grouped payroll exceeds the threshold, and workers' compensation premiums. An EOR with an Australian entity reports through Single Touch Payroll from the first pay run.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Australia
An Australian employer registers for PAYG withholding with the ATO under its ABN, reports every pay run through Single Touch Payroll, and registers for payroll tax in each state once grouped wages pass the threshold: NSW 5.45% above AUD 1.2M, Victoria 4.85%, Queensland 4.75%, the ACT 6.85%. An EOR's pooled payroll exceeds every threshold: expect the full rate passed through. The Superannuation Guarantee is 12% of ordinary time earnings and, since 1 July 2026, is paid with every pay run instead of quarterly: Payday Super is the 2026 change. Workers' compensation adds 1–2% through state schemes. Income tax is withheld at 15% to 45% above the AUD 18,200 tax-free threshold (16% cut to 15% on 1 July 2026), plus the 2% Medicare levy. The national minimum wage is AUD 26.44 per hour, AUD 1,004.90 a week, from 1 July 2026. Pay is monthly or fortnightly. The EOR files STP, super, payroll tax and the annual STP finalisation.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract standard; Fair Work Information Statement at hire
- Modern Award and classification level stated in the contract
- Probation usually 6 months, matching the minimum employment period
Leave & Time Off
- 4 weeks paid annual leave (5 for some shift workers)
- 10 days paid personal/carer's leave plus 10 days paid family and domestic violence leave
- 12 months unpaid parental leave with government Paid Parental Leave
Termination Rules
- Notice 1 to 4 weeks by tenure, plus 1 week over 45 with 2 years' service
- Redundancy pay 4 to 16 weeks after 12 months
- Unfair dismissal claims after 6 months (12 for small business)
COMPLIANCE
Modern Awards and Fair Work Compliance in Australia
Australia's compliance risk is classification. Almost every role earning under the AUD 190,100 high-income threshold is covered by one of 122 Modern Awards, and the award decides minimum rates, overtime, penalty rates and allowances. Paying above the award does not switch it off: the employer must show the salary covers every entitlement, and intentional underpayment became a criminal offence on 1 January 2025. Termination follows the Fair Work Act: one to four weeks' notice by tenure, an extra week over 45 with two years' service, redundancy pay of 4 to 16 weeks, and a 21-day unfair dismissal claim window once the six-month minimum employment period has passed. An EOR maps the award at hire and keeps the record.
Key Challenges
- 122 Modern Awards set pay and conditions by industry
- Unfair dismissal claims open after 6 months
- Payroll tax and workers' compensation differ in every state
- Labour hire licensing in Victoria, Queensland, SA and the ACT
- Superannuation at 12% on top of gross salary
Country Highlights
Advantages
- English-speaking, highly educated workforce
- Transparent statute: Fair Work Act and public award pay guides
- Time zone covering Asia-Pacific business hours
- Strong common-law contract and IP protection
- Employment contracts and payslips issued in English
Popular Industries & Roles
Technology
Avg. Salary: AU$110k-AU$180k
Sydney and Melbourne run the region's largest software, fintech and SaaS hubs, with Atlassian and Canva anchoring the engineering market
Mining & Resources
Avg. Salary: AU$120k-AU$200k
Perth and Brisbane supply mining, energy and resources engineers, geologists and project managers to the sector that pays the country's highest wages
Financial Services
Avg. Salary: AU$100k-AU$170k
Sydney hosts the big four banks and a AUD 4 trillion superannuation industry, with deep banking, funds management and wealth talent
Top 3 Providers in Australia
Based on our analysis of pricing, compliance record, service quality, and customer reviews
EPG Group
- Payroll AU$28/worker/month; EOR fee on quote
- 34+ EOR countries; Xemplo HCM app included
- Coinbase, Meta, Ferrero clients; 1,000+ businesses
- No EOR setup fees; 482 visa and VEVO
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Employment Hero
- All-in-one HRMS, payroll, ATS and EOR
- 350,000+ businesses served
- EOR quote-based, about 5% of payroll
- SOC 2 Type II; free HRMS tier
Frequently asked questions
Hiring in Australia through an EOR, in short.
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How much does an employer pay on top of salary in Australia?
Employer contributions in Australia come to ≈15–18%; the largest mandatory line is Super 12%. With the other statutory benefits and a typical EOR fee, budget ~25–30% on top of gross salary.
What does an EOR charge per employee in Australia?
Published EOR fees in Australia run $500–700/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Australia pay in tax and contributions?
Income tax is 0–45% + 2% Medicare and employee social contributions are 2% Medicare levy (None (super is employer-paid)), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Australia?
1-3 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly or fortnightly).
Which EOR providers rank best in Australia?
EPG Group, Deel and Employment Hero hold the first three places in our ranking for hiring in Australia. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Australia.
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