Australia is one of the world’s largest and most stable economies, offering a transparent regulatory environment, a highly skilled workforce, and strong trade relationships across the Asia-Pacific region.
With relatively low barriers to entry for foreign businesses and a legal system similar to other common-law jurisdictions, Australia is often an attractive market for companies looking to expand internationally.
Before conducting business in Australia, companies must establish an appropriate business structure and register with the Australian Securities and Investments Commission (ASIC) if operating as a company.
Businesses may also need to obtain an Australian Business Number (ABN) through the Australian Taxation Office (ATO), register for applicable taxes, and comply with federal, state, and local regulatory requirements based on their industry and business activities. Some registration obligations may include:
Many of these registrations can be accomplished through the Australian Business Register (ABR) or directly on the state or territory’s website.
While a local Australian bank account is not always legally required to begin conducting business in Australia, many employers choose to establish one to facilitate payroll, tax payments, and local business operations.
Foreign-owned entities can generally open Australian business bank accounts once the business has been appropriately registered with Australian authorities.
The National Minimum Wage applies to employees not covered by an award or registered agreement. This is the minimum pay rate provided by the Fair Work Act 2009 and is reviewed each year.
From July 1, 2026, the National Minimum Wage is $26.44 AUD per hour or $1,004.90 AUD per week.
Some employees have a different minimum wage depending on their employment type, age or work capacity. For more information about pay for these employees, visit:
Superannuation, commonly referred to as “super” in Australia is a mandatory retirement savings system where employers contribute a portion of an employee’s wages into a super fund, which is invested to grow over time for retirement. Employees can make additional voluntary contributions on top of the employer contribution, subject to caps.
Prior to July 1, 2026, the Superannuation Guarantee rate was calculated at 12% of an employee's Ordinary Time Earnings (OTE). Beginning July 1, 2026, the Superannuation Guarantee will be calculated on qualified earnings.
Employers must pay superannuation for all eligible employees, including full-time, part-time, and casual workers. Key eligibility criteria include:
Effective July 1, 2026, employers will be required to pay superannuation contributions on the same day as their employees' salary and wages. This 'Payday Super' reform is a key legislative change. The new rules require that the contribution is received by the employees’ superannuation fund within seven business days of payday.
This change replaces the quarterly payment cycle and is intended to ensure employees receive their entitlements in a timelier manner and benefit from investment returns sooner.
Additional information on Australia’s superannuation can be found on the Australian Taxation Office website.
Payroll administration in Australia is governed primarily by the Fair Work Act 2009, which requires employees to be paid at least monthly.
Employers should also review any applicable modern award or enterprise agreement, as these instruments may impose more specific, and sometimes more frequent, payment requirements, such as weekly, fortnightly, or monthly pay cycles depending on the employee’s industry, occupation, or classification.
To remain compliant, employers should confirm the required pay frequency under the relevant award or agreement and ensure wages are paid accurately and on time.
The National Employment Standards (NE) within the Fair Work Act sets the maximum standard working hours at 38 hours per week for a full-time employee, plus any reasonable additional hours.
When overtime rates apply, for work beyond the ordinary daily or weekly hours, they are usually paid at 1.5 or 2 times the rate. Penalty rates while working specific times, such as weekends, public holidays, or overnight may also apply.
Details on overtime pay rules and rates are provided by the Fair Work Ombudsman.
Australia implemented Single Touch Payroll (STP) to modernize payroll reporting and increase transparency between employers and the Australian Taxation Office (ATO).
Since its phased introduction beginning in 2018, employers have generally been required to report employee wages, PAYG withholding, and superannuation information to the ATO each time payroll is processed, helping streamline compliance and reporting obligations.
Under Australia’s National Employment Standards, employees are eligible for unpaid parental leave, with certain work protections, if they have:
Unpaid leave can be taken up to six weeks before the birth or within 24 months of the birth of a child. The Fair Work Ombudsman provides a parental leave and related entitlements factsheet as an overview of the benefit.
Employees in Australia may also be entitled to paid parental leave provided they meet the following requirements:
For those eligible, the below rate and number of days apply:
Rate of Compensation
|
Australia Financial Year |
Rate of Payment |
|---|---|
|
July 1, 2026 - June 30, 2027 |
$200.94 AUD a day or $1,004.70 AUD per 5 day week |
Number of Days
|
Child's birthday or adoption on or after: |
Up to |
|
July 1, 2024 |
110 days, or 22 weeks based on a 5-day work week |
|
July 1, 2025 |
120 days, or 24 weeks based on a 5-day work week |
|
July 1, 2026 |
130 days, or 26 weeks based on a 5-day work week |
For more information visit Fair Work Ombudsman Unpaid Parental Leave and Paid Parental Leave through Services Australia.
All employees in Australia, except for casual employees, are entitled to paid annual leave of up to four weeks for full or part-time. Shift workers may be entitled up to five weeks depending on their ordinary hours of work. This entitlement comes from the National Employment Standards (NES).
Employers may choose to increase annual leave allotments but cannot grant less than those set by the NES.
As of 2026, the legal retirement age is 67 for pension entitlements. In order to qualify, a person must reach the retirement age and meet other rules such as:
When an employer wants to end an employee’s employment, a notice of termination typically needs to be provided by:
Under NES guidelines, the minimum notice period is based on length of employment:
| Length of Continuous Service |
Minimum Notice Period |
|---|---|
|
Less than one year |
One week |
| More than 1 year but not more than 3 years | Two weeks |
| More than 3 years but not more than 5 years | Three weeks |
| More than 5 years | Four weeks |
An employee must be given the minimum notice period. The minimum notice period can be worked by an employee, or the employer can make a payment in lieu of service.
Employers should ensure that their redundancy is genuine as unfair dismissal claims may arise if the employer:
Public holidays vary based on state or territory an employee works in; however, all employees have the right to be absent from work on a public holiday. Certain public holiday penalty rates may apply for those employees deemed required to work.
For a listing by each state or territory, please visit the list of Australian public holidays.
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The above information was last updated January 26, 2026. It is not intended as legal or tax advice.