Expanding your business in Australia can be a huge opportunity for company growth. Australia is the 12th largest economy in the world, and has few barriers to entry with a legal and corporate framework similar to the United States.
But expanding and managing payroll in Australia isn’t as easy as it sounds – there are tax structures and required payments each year that can be extremely time consuming if you do not have a local partner in-country. 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 is a government initiative introduced in 2018 that streamlines business reporting obligations. Employers with 20 or more employees must report using Single Touch Payroll. There are many regulations regarding Superannuation, and Pay As You Go (PAYG) that must be filed with the Australian Taxation office. 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
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 in Australia. 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.