Expanding your business in Australia can be a huge opportunity for growth. Australia is the 13th largest economy in the world, and has few barriers to entry with a legal and corporate framework similar to the United States.
There are numerous tax structures and required payments each year that can be extremely time consuming if you do not have a local in-country partner. 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.
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
To avoid penalties and fines, ensure you are utilizing technology and in-country experts to ensure total payroll compliance. To learn more, visit https://www.ato.gov.au/Business/
Corporate Tax Return filing due dates:
- If company annual net sales are over $10 million AUD, the tax return is due January 15th, but tax payment is due the month prior, on December 1st
- If company net sales above $2 million AUD, tax return and payment is due March 31st
- Companies with net sales below $2 million AUD have a filing and payment due date of May 15th
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 National Employment Standards (NES) include the following:
- Minimum wage is $19.49 AUD per hour
- 38-hour maximum work week
- Annual leave of 4 weeks paid per year
- Parental, personal, or care-giver paid leave
- Termination and Redundancy pay includes 5 weeks notification and up to 16 weeks of redundancy pay based on length of employee service
- Foreign workers are also protected by the NES regulations
There are a variety of payroll funding options for payroll in Australia. You can utilize the Blue Marble money movement services to fund payroll in USD and then Blue Marble settles in the local currency (AUD). If you have a local bank account you can send funds and pay staff directly with online banking. If you do not have a local bank account, you can send payroll funds to the in-country provider for payment to employees.
Whether you are already doing business in Australia, or looking to expand, we can help simplify the payroll and labor law 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, and 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.