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.

Payroll and Tax Requirements

  • The current minimum wage is AUD 772.60 per week or AUD 20.33 per hour. Minimum wage varies by state and territory-specific laws
  • Employers can request that employees work overtime as long as it is reasonable
  • There is no provision for severance pay except for redundancy. The rate of redundancy pay varies between 4-16 weeks salary
  • 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
    • Business Activity Statement (BAS) filed monthly or quarterly
    • Pay As You Go (PAYG) filed monthly or quarterly
    • Final end of year submission reporting due in last pay period of the year

HR Statutory Requirements

  • Full and part-time employees are entitled to a minimum of 4 weeks paid leave for every 12 months of continuous service
  • Full-time employees receive 10 days sick leave and part-time workers receive a portion of leave depending on hours worked
  • Parents are entitled to 18 weeks of Parental Leave following the birth or adoption of a child
  • Dad or Partner leave is set at AUD 772.55 per week before tax for a maximum of 2 weeks

The retirement income system in Australia has 3 components:

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

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.

Holidays in Australia

  • January 1 – New Year’s Day
  • January 26 – Australia Day
  • April 15 – Good Friday
  • April 25 – ANZAC Day
  • December 25 – Christmas Day
  • December 26 – Boxing Day

Whether you are already doing business in Australia, or looking to expand, we can help simplify payroll and labor compliance for your employees. Our cloud-based technology and integrated global HR compliance solutions ensure you stay up to date with the latest payroll and HR regulations. With customized reporting, you can view your payroll in real-time across all countries and currencies. Our US-based team and in-country experts are here to help when questions come up. Talk to us today about simplifying your payroll in Australia.