APAC - Australia

Australia

Last updated: Jul 19, 2024

Australia

Currency

$ (AUD)

Working Hours

38/Week

The Commonwealth of Australia is the world’s sixth largest country and is in the Oceania region. Highly developed and having a robust economy, Australia enjoys a large services sector and is a world leader in mineral and LNG extraction and food production. It has a labor force of around 14 million people.

Employment Contracts

An employment contract in Australia can be verbal or written. Employment contracts are agreements between an individual employer and employee that establish the terms and conditions of employment. The terms and conditions in an employment contract must meet at least the minimum standards and entitlements contained within the National Employment Standards and any applicable award. When an employer has a registered workplace agreement in place, that agreement applies. If there is no workplace agreement but there is an award that covers the employer and the type of work being performed by the employee, then the terms and conditions within the award apply. Where there is no workplace agreement or award, then the minimum entitlements within the Fair Work Act and other legislation apply.

Working Hours

Working hours in Australia can be determined by an employer, the position held by an employee, or the sector an employer is operating in. The standard workweek in Australia is 38 hours, over five days. It is not uncommon for employees to work a 40-hour week and receive a half day (four hours) off every other week. Anything exceeding 38 hours per week is considered overtime. Overtime is paid at 1.5 times the ordinary rate of pay for the first three hours (two hours in some industries) and two times the basic rate after that.

Maternity, Paternity & Parental Leave

In Australia, eligible parents are entitled to 20 weeks of Parental Leave Pay following the birth or adoption of a child. Pregnant workers may begin their leave up to 6 weeks in advance of the expected date of delivery, but no later than the date of the child’s birth.

Individuals must notify their employer at least 10 weeks before the child’s due date or date of adoption. Claims for Parental Leave Pay may be submitted up to 3 months before the child’s expected date of birth or adoption, and up to 52 weeks after.

The scheme provides eligible parents up to 20 weeks of Parental Leave Pay at the national minimum wage.

Other Types of Leave

Compassionate Leave

Employees are entitled to 2 days compassionate leave each time they meet the criteria.

Employees can take compassionate leave as:

  • a single continuous 2 day period

  • 2 separate periods of 1 day each

  • any separate periods as agreed with their employer.

Employees don't accumulate compassionate leave and it's not a part of their sick and carer's leave entitlement. Employees can take compassionate leave any time they need it.

If an employee is already on another type of leave (for example, annual leave) and needs to take compassionate leave, they can use compassionate leave instead of the other leave.

Employees can take compassionate leave if:

  • a member of their immediate family or household dies, or contracts or develops a life-threatening illness or injury

  • a baby in their immediate family or household is stillborn

  • they have a miscarriage, or

  • their current spouse or de facto partner has a miscarriage.

Compassionate leave pay. Full-time and part-time employees receive paid compassionate leave. They’re paid at their base pay rate for the ordinary hours they would have worked during the leave.

This doesn't include separate entitlements such as incentive-based payments and bonuses, loadings, monetary allowances, overtime or penalty rates.

Casual employees receive unpaid compassionate leave.

Compassionate leave can't be cashed out.

Health Insurance Benefits

Australia provides public healthcare coverage, Medicare, that covers the costs of most services provided by public hospitals. Private health insurance is common to cover expenses not covered by Medicare, such as dental and optical services. Many employers offer private health insurance benefits. Employers are required to enroll their employees in a superannuation scheme. When choosing which scheme to offer to employees, employers must consider: what the required retrenchment is in their state or territory, what supplier is best for the needs of its employees and what will be covered under the scheme. Each state and territory has legislation regarding superannuation.

Payroll, Tax & Contributions

Employer Taxes 
15.85%

Authority Payment Dates Methods
ATO - Small withholders up to AUD: 25,000 pa – 28 days from quarter endMedium withholders AUD 25,001- 1000,000 pa- 21 days from EOMLarge withholders >100,000 pa – Monday/Thursday about 1 week from payment - EFT/BPAY/Australia Post – can use wire as wellAUD

Workers compensation - Annually - BPAYAUD

SuperannuationSuper Funds - Monthly or quarterly.If quarterly, 28th day after the end of the each quarter - Direct Debit/EFT/BPAYAUD

NSW Office of State RevenuePayroll tax - 7th of the following month.21st of July if annual - Direct Debit/BPAYAUD

VIC State Revenue OfficePayroll tax - 7th of the following month.21st of July if annual - Direct Debit/BPAYAUD

QLD Office of State RevenuePayroll tax - 7th of the following month14th of January of bi-annual21st of July if annual - EFT/BPAYAUD

TAS Office of State RevenuePayroll tax - 7th of the following month.21st of July if annual - EFT/BPAYAUD

Revenue SAPayroll tax - 7th of the following month.21st of July if annual - EFT/BPAYAUD

NT Office of State RevenuePayroll tax - 7th of the following month.21st of July if annual - EFTAUD

VAT

Australia has a goods and services tax (GST), not a VAT. The standard GST rate is 10%.

Compensation

The basic minimum wage is $23.23 per hour, or $882.80 per 38-hour week and applies unless there is another agreement in place for the employer or industry. Most employees in Australia are covered by an award or enterprise agreement and are entitled to the minimum wage in the award or agreement. Bonuses are common in Australia and are based on annual pay or determined by an award or enterprise agreement.

Sick Leave

Employees are entitled to sick and care leave in Australia. This is also referred to as personal/carer’s leave. Full and part time employees receive at least 10 days of paid annual sick and care leave, to use if unable to work due to illness or to care for an immediate family member who is ill. Unused leave is carried over to the next year. Employees can take any accumulated sick or care leave. Employees are paid at their base rate on days they are on personal/carer’s leave. Employees also receive two days unpaid leave to care for an immediate family or household member. Employees are not permitted to take unpaid care leave when they have available paid personal/carer’s leave.

Vacation Leave

In addition to public holidays, full-time and part-time employees receive four weeks of paid annual leave in Australia, but as many as six weeks is common. Employees working in shifts may get up to five weeks annual leave. Unused leave can be carried over. An employee may be required to take leave if carrying an excessive balance. Employees may be able to cash out or receive pay for unused vacation. Employees must retain at least four weeks of leave, there must be a written agreement each time leave is cashed out, an employee cannot be forced to cash out and the employee must be paid the same amount as if they had worked. Any unused leave is paid out on termination of employment.

Public Holidays

In Australia, the public holidays are:

  • New Year’s Day

  • Australia Day

  • Good Friday

  • Easter Monday

  • Anzac Day

  • Independence Day

  • Christmas Day (with the exception of Heard & McDonalds Islands)

  • Boxing Day (with the exception of Heard & McDonald Islands)

Employment/Termination/Severance

In Australia, termination of employment can occur during the probation period, at the end of the contract term, by the employer (with or without cause) or by the employee. An employer can dismiss an employee without providing notice at the end of a fixed-term contract, for serious misconduct, or if the employee performs certain daily or season work. Serious misconduct includes theft, fraud, assault, failure to follow reasonable instructions and conduct that risks the health and safety of another person or the employer’s business. Absent a fixed-term contract or misconduct, employers must provide notice prior to terminating an employee. This includes employees still within the probation period. Employment contracts and other agreements can establish longer notice periods. Employers can provide pay in lieu of notice. Employers are required to pay severance to employees dismissed due to redundancy. This includes eliminations related to new technologies, business slow-downs, insolvencies, bankruptcies, offshoring and onshore relocations and restructuring. Employers with fewer than 15 employees are not required to pay severance. Employers may also reduce the amount of severance by applying to the Fair Work Commission. Employees may be required to provide notice on resignation. The notice period should be specified in the employee’s contract or other agreement. If no notice period is provided, the employee must provide reasonable notice.

VISA

Australia has dozens of work visas, including for short-term and specialized work. When an employer wants to relocate an employee to Australia, the visa required is the Employer Nomination Scheme visa and is applied for under the Direct Entry stream. The is a permanent visa that allows employees to:

  • stay in Australia indefinitely,

  • work and study in Australia,

  • enroll in the public health care scheme, Medicare,

  • sponsor eligible relatives to come to Australia,

  • travel to and from Australia for five years, and

  • apply for Australian citizenship, if eligible.

Basic eligibility for this visa requires the employee to have:

  •  the necessary skills for the job,

  • a nomination by an Australian employer, 

  • met health and character requirements,

  • an occupation that is on the list of eligible skilled occupations,

  • have at least 3 years relevant work experience, unless exempt, and

  • have a positive skills assessment, unless exempt.

Documents required for an application for the Employer Nomination Scheme visa include:

  • identity documents, such as passport, personal details, and passport issue and expiry dates, a national identity card, if you have one, and proof of change of name,

  • skills and qualifications documents, such as documents that prove your skills and qualifications or prove you are exempt from proving your skills and qualifications,

  • documents that show the employee has competent English,

  • health documents, such as medical exam results provided by the employee’s doctor, and

  • Character documents, such as apolice certificate from every country where the spent a total of 12 months or more in the last 10 years since they turned 16.

Australia has a tool on its website that estimates visa processing times. 

Contact Us

Our team of regional experts are here to support you with your global expansion plans. If you have any questions, contact us and we will be delighted to help.