What do you need to know to hire in Australia?
Superannuation Guarantee sits at 12% on top of every salary, annual leave is 20 days a year, and government-funded parental leave expands to 26 weeks from 1 July 2026. Each guide below covers one layer.
· Australia guide
How does Teamed handle Australian hiring for you?
Teamed becomes your legal employer of record in Australia for from $599 per employee per month, with zero FX mark-up in any currency.
Payroll, benefits, and the full Australian employment law stack run on one platform.
Real HR and legal experts manage every Australian hire, from the first offer letter to the final pay run. An actual person, not a chatbot or a pooled queue, handles your Australian team alongside EOR, contractor onboarding, and entity payroll on one platform. There is no setup fee and no exit fee. Employer cost passes through at cost, itemised on every invoice.
An Australian contractor who converts to employment keeps their record, and that same employee can graduate from EOR to your own Australian entity without re-onboarding. Run the Crossover Calculator to see the month the model flips. EOR is the right model for a first Australian hire, until it isn't.
- Super is on top, not inside, the salary. When an Australian hire agrees to a gross salary, Superannuation Guarantee at 12% sits on top of that number. Most US buyers budget for an all-in rate and miss this. The cost breakdown guide shows the real total.
- State payroll taxes are a second employer cost layer. Australia has no federal payroll tax, but every state and territory levies its own at rates up to 6.85%. You cross the threshold faster than you expect when you add super on top of salary. The tax and payroll guide covers each state.
- Government-funded parental leave reaches 26 weeks from 1 July 2026. This is not employer-funded. It is a Centrelink payment the employee claims. Most competitor guides are still on the pre-July 2026 rate of 22 weeks.
Hiring in Australia costs more than the salary number. Superannuation Guarantee at 12% is mandatory on top of wages. State payroll taxes add a further layer depending on your total Australian wage bill.
Teamed runs Australian payroll, contracts, and compliance through its in-country operations from day one.
From 1 July 2026, government-funded parental leave extends to 26 weeks. Annual leave is 20 days under the National Employment Standards. This page is the map. Each guide below is the detail.
Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk.
How much does it cost to hire an employee in Australia in 2026?
An Australian hire costs more than the salary number.
Superannuation Guarantee at 12% sits on top, and state payroll taxes add more depending on your total Australian wage bill.
Where does the extra go? Superannuation Guarantee is 12% of ordinary time earnings, paid on top of the agreed salary, not out of it. This surprises most overseas buyers who assume super is included in the gross. State payroll taxes vary from around 4.75% to 6.85% depending on the state, with thresholds that can be crossed quickly at modest headcount when super is included in the wage bill calculation.
Teamed's Australian fee is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, super, and benefits passed through at cost on every invoice.
The full breakdown, with worked examples against current statutory rates, sits in the cost guide.
Do you need an Australian entity to hire employees in Australia?
No. An Employer of Record runs Australian payroll and contracts from day one.
Your own Australian entity becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary and state.
Setting up an Australian company takes several weeks and involves ASIC registration, Australian Business Number setup, PAYG withholding registration, and Superannuation Guarantee compliance from day one. An Employer of Record is faster and cheaper at low headcount, and Teamed runs Australian payroll, contracts, and benefits the day you sign.
The crossover point varies by state because of state payroll tax thresholds. At typical tech salaries, a small team can cross a state threshold before you expect it, adding a new compliance obligation. Teamed tells you when the crossover approaches and supports the move to your own entity under the same platform.
What changed in Australian employment law for 2026?
Government-funded Parental Leave Pay expands to 26 weeks from 1 July 2026.
Partners can access up to 20 days of the pool on a use-it-or-lose-it basis (Paid Parental Leave Act 2010, as amended).
The biggest 2026 change in Australian employment is the Paid Parental Leave expansion. From 1 July 2026, the government-funded pool reaches 26 weeks, up from 22 weeks in 2025. The payment is a Centrelink benefit, not employer-funded, but employers must understand the leave structure and coordinate it with any company-funded top-up. Partners receive 20 reserved days on a use-it-or-lose-it basis.
On minimum wages, the Fair Work Commission 2026 Annual Wage Review sets the new national minimum wage from 1 July 2026. The minimum employment period for unfair dismissal protection remains 6 months for businesses with 15 or more employees. The compliance guide covers the Closing Loopholes Act obligations that came into force in 2025.
What benefits must you provide Australian employees in 2026?
The statutory floor is 20 days of paid annual leave, 10 days of personal and carer's leave per year, and Superannuation Guarantee at 12%.
Annual leave and public holidays are separate counts in Australia, unlike the UK.
Australian statutory leave sits under the National Employment Standards (Fair Work Act 2009). Annual leave is 20 days per year for full-time employees. Personal and carer's leave adds 10 days per year, accruable and usable for sickness or caring responsibilities. There are 8 national public holidays, with each state adding its own on top.
Government-funded Parental Leave Pay is 26 weeks from 1 July 2026, claimable by eligible primary carers. Superannuation Guarantee at 12% is the mandatory employer contribution, accrued on ordinary time earnings and paid to the employee's nominated super fund. The benefits guide covers long service leave, which varies by state.
What are payroll taxes in Australia in 2026?
There is no federal payroll tax in Australia. Superannuation Guarantee at 12% is the mandatory employer super contribution.
Each state and territory levies its own payroll tax once your total Australian wage bill crosses the state threshold.
Superannuation Guarantee is 12% of ordinary time earnings, paid on top of salary to the employee's nominated super fund by the 28th day after each quarter. Employee super contributions are voluntary. PAYG withholding (income tax withheld at source) is lodged with the ATO: small withholders quarterly, large withholders weekly or next business day.
On the employee side, income tax is nil on the first A$ 18,200/year. The opening rate above that is 16%, rising through 30% on earnings above AUD 45,000 and reaching the top rate of 45% on income over AUD 190,000. The Medicare Levy adds 2% on top for most resident employees. The tax and payroll guide sets out every band, threshold, and state payroll tax rate.
How do you terminate an employee in Australia?
Statutory notice starts at 1 week for less than one year of service.
It scales with tenure to a maximum of 5 weeks for employees over five years, plus one extra week for employees aged 45 or older with at least two years of service.
Australian termination follows the National Employment Standards under the Fair Work Act 2009. Notice runs from 1 week for under one year of service to four weeks for over five years. Employees aged 45 or older with at least two years continuous service receive one additional week.
Statutory redundancy pay applies after 1 year of continuous service. The entitlement starts at 4 weeks of pay for one to two years of service and scales through the NES table. Unfair dismissal protection applies after 6 months of service for businesses with 15 or more employees, with a compensation cap of A$ 91,550. The termination guide runs the full process.
What should you know before hiring in Australia?
Two things catch US buyers out. Super is on top of the salary, not inside it.
And Modern Awards set minimum pay and conditions for most industries, sitting above the national minimum wage.
Super is on top of salary. When your Australian hire agrees to AUD 100,000 gross, your actual cost is AUD 112,000 before state payroll tax. Many US companies build an all-in budget, then discover the 12% Superannuation Guarantee is a separate obligation. Brief your finance team before the first offer letter goes out.
Modern Awards cover most roles. Australia has over 100 industry and occupation Modern Awards that set minimum pay rates, overtime, penalty rates, and allowances for their covered roles. The national minimum wage is the floor, but the Award rate for the employee's classification is often higher. The hiring guide covers Award coverage, classification, and how to build a compliant employment contract.
Frequently asked questions
How much does it cost to hire an employee in Australia?
Plan on the gross salary plus 12% Superannuation Guarantee on top. State payroll taxes add more once your total Australian wage bill crosses the state threshold. Teamed's fee is one flat number per employee per month, with zero FX mark-up. The cost breakdown guide has worked examples.
Can a US company hire in Australia without setting up an entity?
Yes. An Employer of Record like Teamed runs Australian payroll, contracts, and compliance through its own in-country operations. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed.
What is the Superannuation Guarantee rate in Australia in 2026?
The Superannuation Guarantee rate is 12% from 1 July 2025, paid by the employer on top of the employee's ordinary time earnings. Employee super contributions are voluntary. The tax and payroll guide covers payment schedules and super fund choice obligations.
How much annual leave is an Australian employee entitled to?
Full-time employees are entitled to 20 days of paid annual leave per year under the National Employment Standards. Personal and carer's leave adds 10 days per year. There are 8 national public holidays, with states and territories adding their own on top.
What are the statutory notice periods for termination in Australia?
Notice scales with service under the Fair Work Act 2009. The minimum is 1 week for less than one year of service. It rises through two, three, and four weeks, with a maximum of 5 weeks for employees aged 45 or older with long service. These minimums cannot be contracted below.
What is the unfair dismissal qualifying period in Australia?
Employees at businesses with 15 or more employees can bring an unfair dismissal claim after 6 months of continuous service. The maximum compensation for unfair dismissal is A$ 91,550, or 26 weeks of pay, whichever is lower. The termination guide covers the full process and the small business exemption.
Australia reads as a straightforward English-speaking hire. The catch is the two-layer cost structure: Superannuation on top of salary, then state payroll tax on top of that. Add Modern Award coverage for most roles and the compliance surface is larger than it looks. These guides exist so the first Australian hire never becomes an underpayment claim.
Hiring in Australia looks clean. One currency, English contracts, a clear statutory floor.
The clean part ends at Super on top of salary, state payroll tax, and Modern Award coverage for most roles.
Read the right Australia guide before the first hire, not after the first underpayment notice.
