Australia is the 13th largest economy in the world, with few barriers to entry and a legal and corporate framework similar to the United States. Setting up the correct business structure, determining licenses necessary to operate, and registering with the Australian Securities and Investments Commission are just a few steps to getting up and running in Australia.
The current minimum wage is AUD 837.00 per week or AUD 21.90 per hour. Minimum wage varies by state and territory-specific laws.
Employers can request that employees work overtime as long as it is reasonable.
There is no provision for severance pay except for redundancy. The rate of redundancy pay varies between four-16 weeks salary.
Personal income tax is progressive and rates range from 0-45% for residents and 32-45% for non-residents.
Single Touch Payroll (STP) is a government requirement that must be filed each pay run for employee payroll. Employers with 20 or more employees must report using Single Touch Payroll.
Superannuation (social insurance) must also be set up and filed each pay period.
There are several additional required filings and deadlines for employee payroll including:
The fiscal year begins on July 1 each year and ends June 30, but businesses must submit tax statements monthly and quarterly. The corporate tax rate is 30% for most foreign companies, but can vary based on sales.
Full and part-time employees are entitled to a minimum of four weeks paid leave for every 12 months of continuous service.
Full-time employees receive 10 days of sick leave and part-time workers receive a portion of leave depending on hours worked.
Parents are entitled to 20 weeks of Parental Leave following the birth or adoption of a child.
Dad or Partner leave is set at AUD 812.60 per week before tax for a maximum of 2 weeks.
The retirement income system in Australia has three components:
When planning to hire in Australia, it's crucial to be aware of the official holidays when employees may not be available for work.
Is Australia in your hiring or expansion plans? Paylocity can help. Our cloud-based platform helps you navigate the waters of international payroll.
And don’t sweat complicated compliance — our hybrid service model includes a U.S.-based team and in-country experts in Australia to help when you have questions.
Want to learn more? Request a demo today!