Is it more expensive to hire in Australia or New Zealand?

Australia carries higher total employer cost. The 12% superannuation guarantee plus state payroll tax significantly exceeds New Zealand's 3% KiwiSaver plus ACC levies. On a A$100,000 salary, Australian super alone adds A$12,000 a year. New Zealand has a smaller talent pool but lower employer on-cost.

Can I hire in Australia or New Zealand without setting up a company?

Yes, through an Employer of Record. An EOR is the legal employer in Australia or New Zealand, runs payroll, handles super or KiwiSaver and ACC levies, while you direct the work. Teamed holds owned entities in both countries; a hire can be set up within days with no entity setup required.

What is the superannuation guarantee in Australia?

The Australian Superannuation Guarantee is 12% of ordinary time earnings from 1 July 2025, paid on top of salary by the employer. It applies to virtually all employees. EOR providers pass it through at cost.

What is KiwiSaver in New Zealand?

KiwiSaver is New Zealand's retirement savings scheme. Employers must contribute 3% minimum of gross salary on top of the agreed pay for eligible enrolled employees. It is the only mandatory retirement contribution in New Zealand, significantly below Australia's 12% superannuation guarantee.

Do Australian or New Zealand employment laws apply to remote workers?

Employment law follows where the employee works. An employee in Australia is covered by the Fair Work Act regardless of where their employer is based. An employee in New Zealand is covered by the Employment Relations Act. A foreign employer cannot contract out of local statutory minima; a locally compliant contract is essential.

What is Australia's Modern Awards system?

Modern Awards set minimum pay rates and conditions by industry or occupation under the Fair Work Act, on top of the National Employment Standards. There are 121 active Awards. Identifying the correct Award before drafting the employment contract is the primary compliance task for any Australian hire.

Australia vs New Zealand

Hiring in Australia vs New Zealand, which is right for your team

Two distinct legal systems. Australia runs the Fair Work Act, a 12% superannuation guarantee and state-based payroll tax. New Zealand runs the Employment Relations Act, a 3% KiwiSaver employer contribution and ACC levies. Australia offers the larger talent pool; New Zealand is the lower-cost, simpler setup. Choose by role.

Talk to an APAC hiring expert See how APAC EOR works

Both countries, one platform

12%
Australian superannuation guarantee on top of salary from 1 July 2025. The largest employer on-cost line to model before signing any offer.: 3%
KiwiSaver employer contribution in New Zealand, plus ACC Work levies by industry. Total employer on-cost is lower than in Australia.: $599
Teamed flat EOR fee, the same for Australia and New Zealand. FX absorbed at zero markup, shown against the mid-market rate on every invoice.

Last reviewed 26 June 2026By Tom Price-Daniel, Co-founder, Teamed

Should you hire in Australia or New Zealand, and what does each cost?

At a glance

Australia

Best for: roles where talent pool depth matters: engineering, finance, professional services and mining. Australia's 26 million population and strong university output produce a larger professional shortlist. The employer on-cost is higher (12% super plus state payroll tax) but the labour market rewards it.

New Zealand

Best for: a first APAC hire or a role where location is flexible. New Zealand's 3% KiwiSaver plus ACC levies total significantly less than Australian super plus payroll tax. The talent pool is smaller (5 million people) but the legal framework is simpler and the collaboration relationship with Australian staff is close.

Shared by both: both run on common-law employment contracts · citizens of each country can live and work in the other under the Trans-Tasman Travel Arrangement · minimum four weeks annual leave in both jurisdictions · EOR covers both without an entity, on one Teamed contract

Where it matters	Who leads	Why
Employer on-cost above salary	New Zealand	Australia: 12% superannuation guarantee plus state payroll tax (4.75 to 5.5% above each state's threshold). New Zealand: 3% KiwiSaver plus ACC Work levies (industry-variable). Total employer on-cost in New Zealand is materially lower for most professional roles.
Talent pool depth	Australia	Australia's population of 26 million, spread across five major cities, produces a deeper shortlist for most professional roles. New Zealand's 5 million people and one dominant city (Auckland) suit roles where the hire can be remote or where NZ-specific credentials matter.
Employment law complexity	New Zealand	New Zealand's framework is simpler for a first hire: one national standard (the Employment Relations Act 2000), no Modern Awards system, and KiwiSaver as the sole mandatory retirement contribution. Australia layers Modern Awards on top of the National Employment Standards, with eight separate state and territory payroll-tax regimes.
Time zone coverage for global teams	Australia	Australia spans three main time zones (AEST UTC+10, ACST UTC+9:30, AWST UTC+8), giving broader Asia overlap. New Zealand (NZST UTC+12) is the furthest east in APAC and suits roles serving Pacific markets or those with overlap to Japan and South Korea.
Entity setup and ongoing compliance	New Zealand	Setting up an Australian PTY Ltd involves ASIC registration, an ABN, state payroll tax registrations and ATO enrolment. A New Zealand Limited company is registered through the Companies Office, with a single-jurisdiction tax regime and no state-level payroll tax layer to manage.
Speed to first hire via EOR	Draw	With an EOR, both countries are fast to hire in. Teamed holds owned entities in Australia and New Zealand, so a compliant local contract can be issued within days. Neither requires you to set up an entity before making the first hire.

Australia on G2

Who Australia is for

This guide is for people and finance teams at rapidly growing companies choosing between an Australian and a New Zealand hire: deciding where a role should sit, modelling the employer cost difference, and working out whether EOR or an owned entity is the right structure. It is also for teams that have inherited headcount in one country and are considering whether the other makes sense for expansion.

Not the right fit if

Comparing EOR providers, not countries?. This page covers employment law and employer cost, not which EOR to use. For a scored comparison of EOR providers in Australia, see the best EOR in Australia guide. For New Zealand, see the best EOR in New Zealand guide.
Need immigration or visa advice?. EOR and employment law are in scope here. Immigration and visa strategy for individual candidates is out of scope and needs qualified immigration counsel.

Find your pick in 20 seconds

If you are…	Start with	Why
Engineering, finance or professional-services role	Australia	Larger talent pool across Sydney, Melbourne and Brisbane. The 12% super premium is the price of access to a deeper shortlist.
First APAC hire, cost is a constraint	New Zealand	Lower employer on-cost (3% KiwiSaver plus ACC vs 12% super plus state payroll tax), simpler legal framework, fast EOR setup with no entity required.
Role requires Pacific or East Asia time-zone overlap	New Zealand	NZST (UTC+12/13) is the furthest east in APAC and aligns well with Pacific markets and Japan's business hours.
Team already in Australia, considering adjacent coverage	New Zealand	The Trans-Tasman relationship is close, mutual recognition of qualifications is common, and a NZ hire falls within AEST's working day for most collaboration.
Long-term plan to open an office in the region	Start EOR in your target country	EOR lets you validate the market and build the team before committing to an entity. Both Australia and New Zealand are covered on the same Teamed contract, so you can move between countries without re-onboarding.

What is the Australia vs New Zealand hiring decision?

Australia and New Zealand are neighbouring common-law jurisdictions in the APAC region, but they run separate employment frameworks with meaningfully different employer costs. Australia is governed by the Fair Work Act 2009, the National Employment Standards and a system of Modern Awards that set minimum pay rates by industry. On top of salary, employers must pay a superannuation guarantee of 12% and, above each state payroll-tax threshold, a state payroll tax of roughly 4.75 to 5.5%.

New Zealand operates under the Employment Relations Act 2000 and the Holidays Act 2003. The employer-side on-cost is lower: a 3% KiwiSaver contribution plus an ACC Work levy that varies by industry. There are no Modern Awards and no state-level payroll tax, which makes the compliance footprint simpler for a first-time hire. Both countries allow foreign companies to employ compliantly via an Employer of Record without setting up a local entity, and both are covered through Teamed's owned entities so the legal employer is in place before you need it.

Employer costs above salary

The cost to employ in Australia is higher than in New Zealand for most roles, and the gap is largely driven by the 12% superannuation guarantee. On a A$100,000 salary, the super alone adds A$12,000 a year before state payroll tax. In New Zealand, a 3% KiwiSaver contribution on a comparable NZD salary adds around NZD 3,000, plus an ACC Work levy that is typically a few hundred dollars per employee per year. Model the total employer cost before you choose a location.

Detail	Australia	New Zealand
Retirement contribution	12% superannuation guarantee (from 1 July 2025), on top of salary, mandatory for virtually all employees.	3% KiwiSaver employer contribution (minimum), on top of salary, for eligible enrolled employees.
State or national tax on payroll	State payroll tax applies above each state threshold (4.75 to 5.5%). Eight separate state and territory regimes. An EOR handles registration in each state where employees work.	No state-level payroll tax in New Zealand. Single national jurisdiction with no equivalent charge.
Workplace injury levy	Workers compensation insurance, state-administered. Premium varies by industry and payroll; an EOR registers in each relevant state.	ACC Work levy paid by the employer based on industry classification and payroll. Employees pay a separate ACC Earners' levy via PAYE.

Model total cost, not just salary

A salary of A$100,000 in Australia carries at least A$12,000 in superannuation plus applicable state payroll tax. A broadly equivalent NZD salary in New Zealand carries around NZD 3,000 in KiwiSaver plus an ACC Work levy. Run the full employer cost calculation before comparing offers across the two markets.

Employment law frameworks

Both countries use common-law employment contracts, but the statutory overlay differs. Australia has a layered system: the Fair Work Act sets the floor, the National Employment Standards sit above it, and Modern Awards layer industry-specific minima on top of both. New Zealand's Employment Relations Act is a single national framework with no Awards layer, which makes the contract drafting and compliance review simpler for a first-time employer. In both countries the contract cannot go below the statutory minimum for the relevant category.

Detail	Australia	New Zealand
Governing legislation	Fair Work Act 2009. National Employment Standards apply to virtually all national system employees.	Employment Relations Act 2000. Minimum entitlements set by the ERA, the Holidays Act 2003 and associated regulations.
Minimum pay floors	Modern Awards set industry or occupation-specific minimum rates on top of the NES. 121 active Awards cover most industries. Correct Award identification is required before drafting the contract.	National minimum wage only, reviewed annually. No Awards equivalent. New Zealand's 2026 minimum wage is NZD 23.15 per hour.
Termination notice	Minimum notice periods set in the Award or NES. Redundancy pay applies for employees with one or more years of service in businesses with 15 or more employees.	Notice under the ERA or the employment agreement, whichever is greater. Redundancy compensation is not legislatively prescribed; it is negotiated in the agreement.

Awards add a compliance step for Australian hires

If you are hiring in Australia for the first time, identifying the correct Modern Award for the role is the first task. The Fair Work Ombudsman's Award Finder tool is the starting point, and an EOR with real HR and legal experts will classify the role and apply the correct Award from day one.

Read the Fair Work Ombudsman guidance on the NES

Leave and entitlements

The headline numbers look similar: four weeks annual leave and ten days sick leave in both countries. The mechanics are different. Australia calculates leave on ordinary time earnings, with cashing-out available for some employees. New Zealand's Holidays Act requires annual leave to be calculated at the higher of ordinary weekly pay or average weekly earnings. Getting this calculation wrong has a statutory liability attached, and the Holidays Act is currently under review in New Zealand. An EOR with a local payroll operation handles both automatically.

Detail	Australia	New Zealand
Annual leave	Four weeks under the NES. Some employees and some Awards allow one week per year to be cashed out on written agreement.	Four weeks under the Holidays Act 2003. Accrues from day one; available after twelve months. Calculated at the higher of ordinary weekly pay or average weekly earnings.
Sick leave	Ten days personal and carer's leave per year under the NES. Unused leave accumulates (no cap under the NES, though Awards may differ).	Ten days paid sick leave per year from the first day of employment (as amended by the 2021 Holidays Act amendment).
Public holidays	Public holidays vary by state and territory; most locations observe nine national public holidays plus two or three state-specific ones.	Eleven public holidays per year, nationally consistent under the Holidays Act 2003.

New Zealand's Holidays Act is more complex than it looks

The four-week number is simple; the calculation is not. New Zealand's Holidays Act requires annual leave to be calculated at the higher of ordinary weekly pay or average weekly earnings, and employer errors are common. An EOR with a local payroll operation handles this calculation automatically.

Read Employment New Zealand guidance on annual holidays

Talent market and hiring

Australia has a significantly larger professional talent market. With a population of around 26 million and five major cities, it produces a deeper shortlist in engineering, finance, law and healthcare. New Zealand has a population of around 5 million, concentrated in Auckland. Both countries have high English-language proficiency and a strong tradition of skilled migration, but for roles where candidate volume matters, Australia wins on population. Cross-Tasman mobility also means some candidate pools overlap under the Trans-Tasman Travel Arrangement.

Detail	Australia	New Zealand
Population and talent depth	Around 26 million. Five major cities (Sydney, Melbourne, Brisbane, Perth, Adelaide) give geographic spread across multiple industries.	Around 5 million. Auckland is the dominant talent market; Wellington and Christchurch are smaller alternatives.
Cross-Tasman mobility	Australian citizens and permanent residents can live and work in New Zealand without a visa under the Trans-Tasman Travel Arrangement.	New Zealand citizens can live and work in Australia without a visa. The arrangement is reciprocal and well-established.
Time zone	Three main zones: AEST (UTC+10), ACST (UTC+9:30), AWST (UTC+8). Sydney and Melbourne are on AEST; Perth at UTC+8 gives better overlap with South-East Asia.	NZST (UTC+12) standard, NZDT (UTC+13) in southern summer. Furthest east in APAC, which suits Pacific market roles and late-Japan overlap.

Trans-Tasman candidates can work in both directions

If you hire an Australian citizen for a New Zealand-based role, they have the right to work in New Zealand without a visa, and vice versa. That expands your effective candidate pool for roles in either country and makes it straightforward to move talent between markets if your business grows in both.

EOR vs owned entity in Australia and New Zealand

For a single hire or a small team, an EOR is faster and lower-risk than setting up an entity. An Australian PTY Ltd requires ASIC registration, an ABN, state payroll tax registrations in each state where employees work, and ATO setup. A New Zealand Limited company requires Companies Office registration, an IRD number and ACC registration. Both are manageable but neither is instant. An EOR lets you hire compliantly in either country before you commit to the entity overhead, and both Australia and New Zealand are covered through Teamed's owned legal entities.

Detail	Australia	New Zealand
Entity type	Proprietary Limited company (PTY Ltd). Registered through the Australian Securities and Investments Commission (ASIC).	Limited company (Ltd). Registered through the New Zealand Companies Office (NZCO).
Entity setup time	ASIC registration is typically one to three business days. State payroll tax registrations and ATO enrolment add several weeks to the compliance setup.	NZCO registration is typically one to two business days. IRD and ACC setup adds a few weeks of compliance groundwork.
EOR alternative	An EOR is the legal employer in Australia from day one. No entity, no ASIC registration, no state payroll tax registration required on your side.	An EOR is the legal employer in New Zealand from day one. No NZCO registration, no IRD employer number required on your side.

Teamed's owned entities cover both markets

Teamed holds owned legal entities in both Australia and New Zealand. Real HR and legal experts handle the employment from within the jurisdiction, not through a third-party partner. The crossover to your own entity via Global Entity and Employment Operations (GEMO) is available in 100+ countries on the same platform with no re-onboarding.

Why the comparison matters

Behind every line item is a real person, in a real place.

The fee, the FX and the support model are not abstractions. They decide whether the person you hired in Barcelona or Rome is paid right, on time, by someone who knows their employment law. That is the comparison worth running.

What each stakeholder evaluates

Criterion	Legal	Finance	People Ops	Security
Choosing the country for a first APAC hire	Match the contract to the jurisdiction from day one. Australia requires identification of the applicable Modern Award before the contract is drafted. New Zealand requires an employment agreement that meets the Employment Relations Act 2000 minimum terms. An EOR with real HR and legal experts in both countries handles this without you retaining local counsel.	Run the full employer cost before comparing offers. On a A$100,000 salary in Australia, the superannuation alone is A$12,000 per year before state payroll tax. On a comparable NZD salary in New Zealand, KiwiSaver is 3% plus an ACC Work levy. Total cost of employment differs materially; model both before choosing a location.	Consider talent pool size against the role requirements. Australia has a larger professional market; New Zealand is a solid alternative for roles where the shortlist is not population-dependent. The Trans-Tasman arrangement also means a candidate shortlisted for Australia may already hold the right to work in New Zealand.	Both countries align with GDPR-equivalent privacy law. Australia's Privacy Act 1988 and New Zealand's Privacy Act 2020 both govern employee data. An EOR holds payroll data under local rules; review its controls as you would any payroll partner.
Modelling employer cost before signing an offer	Confirm the employment category and applicable Award (Australia) or applicable minimum wage (New Zealand) before fixing the salary. Statutory entitlements sit on top and cannot be waived in either jurisdiction.	Build a total cost model: salary, super or KiwiSaver, ACC levy or workers compensation, and any applicable payroll tax. The EOR fee ($599 per employee per month at Teamed) is the same for both countries. The underlying statutory employer cost is not.	Communicate the total package to the candidate, including super or KiwiSaver, so they understand the employer's contribution. In Australia especially, candidates increasingly model super as part of total remuneration when comparing offers.	Confirm where payroll data will be held. Both countries require a local EOR entity to hold the data in-jurisdiction, which simplifies privacy compliance for both employer and employee.
Building towards an owned entity	An EOR contract does not prevent you from later setting up an owned entity and migrating the headcount across. In both countries the EOR is the legal employer until you formally transition. Get specialist advice on the timing of that transition in relation to unfair dismissal rules.	Global Entity and Employment Operations (GEMO) on the Teamed platform sets up and runs your own entity in 100+ countries, including Australia and New Zealand, with no re-onboarding. Compare the fixed entity-running cost against the per-head EOR fee to find the breakeven for your headcount size.	Plan the entity transition with employees in advance. For most roles the change is administrative rather than contractual, but both Australian and New Zealand employment law require reasonable notice of any change to employment terms.	On migration to an owned entity, confirm data transfer processes from the EOR platform to your own payroll system. Both countries have strict data-portability obligations under their respective privacy acts.

How to make the Australia vs New Zealand hiring decision

The decision is a sequence: model the cost, match the role to the talent market, pick the jurisdiction, then choose EOR or entity. You can start hiring in either country within days via EOR, and transition to an owned entity later when headcount justifies it.

Step 1
Model total employer cost
Build a side-by-side cost model: salary, super (12%) or KiwiSaver (3%), ACC levy or workers compensation, and state payroll tax (Australia only). The difference is material for most professional roles.
Step 2
Match the role to the talent market
If the role needs volume of candidates, Australia wins on population. If the role is location-agnostic or suits New Zealand's market, proceed there. Cross-Tasman mobility means some candidate pools overlap.
Step 3
Pick the employment structure
Use an EOR to hire immediately without an entity. Both Australia and New Zealand are covered through Teamed-owned entities, so a compliant local contract can be issued within days.
Step 4
Set up the offer with the right entitlements
In Australia, identify the Modern Award before drafting the contract. In New Zealand, draft to the Employment Relations Act minimum. An EOR with real HR and legal experts handles both.
Step 5
Plan the entity transition if relevant
Once headcount justifies it, move from EOR to an owned PTY Ltd or NZ Limited. Teamed's GEMO service covers both countries in 100+ country entity formation, with no re-onboarding of existing staff.

Dyke Yaxley · UK chartered accountancy

Audit capacity doubled. Zero entity setup.

Audit capacity added in 2024: +100%
Compliance issues across the engagement: 0
Employees hired via EOR, both retained: 2
Entity setup required: None

Challenge

Dyke Yaxley, a UK chartered accountancy with over a century of history, needed to expand its audit team into internationally sourced talent markets in 2024. Local UK talent supply for qualified auditors had not kept pace with demand, and cross-border hiring into a new legal jurisdiction felt legally complex for a firm whose brand sits on compliance discipline.

Approach

Dyke Yaxley partnered with Teamed to hire qualified professionals via EOR, without setting up a local entity. Teamed acted as the legal employer end-to-end: compliant local contracts, local payroll, statutory obligations and onboarding, with real HR and legal experts handling the employment-law side. No entity setup, no local counsel on retainer.

Result

Both hires exceeded expectations on technical work, client satisfaction and cultural fit. Audit capacity doubled in 2024 with zero compliance issues across the engagement. The firm went from declining new audit work to confidently expanding into new client relationships.

Read the full case study →

Interactive tool

Work out the employer cost in Australia vs New Zealand

Enter the proposed salary and country to see the estimated total employer cost including superannuation or KiwiSaver, ACC levy or workers compensation, and applicable payroll tax. A real HR or legal expert can review the full cost model before you commit to an offer.

Model your APAC employer cost

Decision checklist

Choose Australia when you need talent pool depth in professional, technical or specialist roles, and you have modelled the 12% superannuation and applicable state payroll tax into the total cost of employment.
Choose New Zealand when total employer cost is a constraint, the role is location-agnostic, or you want the simpler compliance framework for a first APAC hire.
Use an EOR to hire in either country immediately, without an entity. Both Australia and New Zealand are covered through Teamed's owned entities, so the legal employer is in place from day one.
Model the total employer cost before comparing offers across the two markets. The salary line may look comparable; the statutory on-costs are not.
Plan for the entity transition from the start. When headcount justifies it, move from EOR to an owned PTY Ltd or NZ Limited using GEMO, with no re-onboarding of existing staff.

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Honest take

When New Zealand is the right choice

Choose New Zealand when total employer on-cost is the primary constraint. At 3% KiwiSaver plus ACC levies versus 12% superannuation plus state payroll tax, New Zealand carries a lower cost of employment for most professional roles.
Choose New Zealand when the role is location-agnostic and the compliance simplicity of a single-jurisdiction, no-Awards framework is worth more than the talent pool depth that Australia offers.
Choose New Zealand when the role serves Pacific or late-East-Asia time zones. NZST (UTC+12/13) gives better overlap with Pacific markets, Japan and South Korea than Australian eastern time.
Choose New Zealand for a first APAC hire if you want to test the market with the lowest entity setup complexity. A New Zealand Limited company is the simpler structure to run long-term.

New Zealand is not a consolation prize. For the right role, the combination of lower employer on-cost, simpler compliance and a strong English-speaking talent market makes it the practical choice. Australia wins on talent depth and time-zone breadth; New Zealand wins on cost and legal simplicity. The right answer depends on the role, not the flag.

Questions to ask any EOR before you sign

1Is the role focused on talent pool depth, or is the location flexible? Australia wins on volume; New Zealand works well for the right role.
2Have you modelled the total employer cost including superannuation or KiwiSaver, ACC levies and applicable state payroll tax?
3Does the candidate already have the right to work in Australia or New Zealand, or will you need to support a visa application?
4Do you want to build towards an owned entity, or is EOR the permanent structure? Both countries offer a clean EOR-to-entity path.
5Which time zone suits your collaboration model? Australian eastern time (AEST) overlaps better with Asia; New Zealand time (NZST) suits Pacific and late-Japan overlap.
6Will the hire need to work closely with an Australian team? The Trans-Tasman relationship makes cross-Tasman roles practical.
7Have you read the employment contract for Modern Awards coverage (Australia) and Employment Relations Act protections (New Zealand) before finalising the offer terms?

Frequently asked questions

Is it more expensive to hire in Australia or New Zealand?
For most professional roles, Australia carries higher total employer cost. Australia requires a 12% superannuation guarantee on top of salary plus applicable state payroll tax (4.75 to 5.5% above threshold). New Zealand requires a 3% KiwiSaver employer contribution plus an ACC Work levy. The gap is significant: on a A$100,000 salary, Australian superannuation alone adds A$12,000 per year before payroll tax. The trade-off is talent pool depth; Australia has a larger professional market.
Can I hire in Australia or New Zealand without setting up a company?
Yes, via an Employer of Record. An EOR is the legal employer in the relevant country. It issues a compliant employment contract, runs payroll, handles statutory obligations including superannuation or KiwiSaver, ACC levies and payroll tax registrations, while you direct the day-to-day work. Teamed holds owned legal entities in both Australia and New Zealand, so a hire can be set up in either country within days, without any entity setup on your side.
What is the superannuation guarantee in Australia?
The Superannuation Guarantee (SG) is 12% of ordinary time earnings from 1 July 2025. All employers covered by SG legislation must pay 12% on behalf of eligible employees, on top of the salary. It applies to virtually all employees and to most contractors engaged principally for their labour. EOR providers pass superannuation through at cost.
What is KiwiSaver in New Zealand?
KiwiSaver is New Zealand's workplace retirement savings scheme. Employers must contribute a minimum of 3% of an eligible enrolled employee's gross salary on top of the agreed salary. Employee contributions are also deducted via PAYE. KiwiSaver is the sole mandatory retirement contribution in New Zealand, well below Australia's 12% superannuation guarantee. EOR providers pass KiwiSaver employer contributions through at cost.
Do Australian or New Zealand employment laws apply to remote workers?
Employment law jurisdiction follows where the employee is physically located and performing the work, not where the employer is headquartered. An employee working in Australia is covered by the Fair Work Act and the National Employment Standards regardless of where their employer is based. An employee working in New Zealand is covered by the Employment Relations Act 2000 and the Holidays Act 2003. A foreign employer cannot contract out of these statutory minima, which is why a locally compliant employment contract, issued by an EOR or directly, is essential before a hire starts work.
What is Australia's Modern Awards system?
Modern Awards are instruments under the Fair Work Act that set minimum pay rates and conditions for specific industries or occupations. There are 121 active Modern Awards. They layer on top of the National Employment Standards and set the floor for pay, overtime, penalties, allowances and other conditions for the relevant industry or occupation. When hiring in Australia, identifying the correct Award for the role is the first compliance task. Getting it wrong creates statutory liability. An EOR with real HR and legal experts will classify the role and apply the correct Award from day one.

Common questions

Should I hire in Australia or New Zealand for my first APAC team member?
It depends on what matters most: talent pool depth or employer cost. Australia's 26 million population gives a larger professional shortlist, but the employer cost is higher: 12% superannuation guarantee on top of salary plus applicable state payroll tax. New Zealand's 5 million population means a smaller candidate pool, but the employer on-cost is lower (3% KiwiSaver plus ACC levies, no state payroll tax), and the compliance framework is simpler for a first hire. If the role is location-agnostic, model the cost difference first. If the role needs a deep candidate shortlist, Australia is the logical starting point. Both countries can be covered via EOR on day one, so you can start hiring in either market before committing to an entity.
How much does it cost to employ someone in Australia vs New Zealand?
The total employer cost depends on salary, country and industry. In Australia the main on-costs are the 12% superannuation guarantee (mandatory from 1 July 2025) and, above each state payroll-tax threshold, a state payroll tax of approximately 4.75 to 5.5%. In New Zealand the main on-costs are the 3% KiwiSaver employer contribution and an ACC Work levy that varies by industry. For a professional role at a comparable salary level, the Australian employer on-cost is materially higher than the New Zealand equivalent. An EOR adds its fee on top of these statutory costs; Teamed charges $599 USD per employee per month for both Australia and New Zealand, with FX at zero markup.

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