Expanding Your Business: Payroll in Australia

If you're looking to hire in Australia, leverage Paylocity's integrated global payroll solution with real-time access to aggregated payroll data.

Payroll in Australia

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.

Australia Labor Laws

What is the Minimum Wage 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.

Overtime Policies

Employers can request that employees work overtime as long as it is reasonable.

Severance Policies

There is no provision for severance pay except for redundancy. The rate of redundancy pay varies between four-16 weeks salary.

Australia Payroll Taxes

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:

  • Instalment Activity Statement (IAS) filed monthly or quarterly
  • Business Activity Statement (BAS) filed monthly or quarterly
  • Pay As You Go (PAYG) filed monthly, quarterly, or weekly (depending on tthe size of the business)
  • Final end of year submission reporting due in the last pay period of the year

Payroll Tax Due Dates

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.

Australia HR Statutory Requirements

Leave Requirements

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.

Parental Leave

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.

Retirement Policies 

The retirement income system in Australia has three components:

  1. Means tested Age Pensions funded through general taxation
  2. Superannuation guarantee through employee contributions
  3. Voluntary superannuation and other private savings

Holidays in Australia

When planning to hire in Australia, it's crucial to be aware of the official holidays when employees may not be available for work.

  • January 1 – New Year’s Day
  • January 26 – Australia Day
  • March 29 – Good Friday
  • April 25 – ANZAC Day
  • December 25 – Christmas Day
  • December 26 – Boxing Day

Easily Hire and Pay Employees in Australia

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!

Pay Employees in Australia, Simply and Seamlessly

Establish a Presence

Easily set up business entities and simplify compliance with local requirements. Hire in-country and manage your expat employees.

All Payroll in One Place

Reduce manual processes and compliance issues by creating, managing, and paying domestic and global employees in a single place.

Tap into Local Experts

A U.S.-based service team and direct access to in-country professionals relieve the headaches of paying an international workforce.

Request a Blue Marble Payroll Demo

Please complete the form to see how Blue Marble can improve your global payroll.

Your Information
Your Contact Information
Your Information
Company Information
Location Information
About your current HRIS solution
Email Updates

By submitting this form, you agree to the processing of your personal information as described in our Privacy Policy.


Hidden Fields
Your Information
Your Contact Information
Your Information
Company Information
Location Information
About your current HRIS solution
I agree to the policy agreement

The information you provide will be used in accordance with the terms of our Privacy Policy.


Hidden BMP Fields