Hire employees in Australia: Average salary, trends, and key steps

Australia offers businesses a highly educated, English – speaking workforce with strong protections for employees and employers alike. Expanding your team here opens access to skilled talent and a business-friendly market. But to succeed, you must understand the advantages and the challenges of Australia’s employment landscape.

An EOR simplifies every step and checks every compliance box so you can focus on building a high-performing team. Here is a snapshot view of what hiring looks like in-house versus with an Employer of Record.

Average salary and hiring trends in Australia, 2025

• With a 4% unemployment rate*, companies expanding in Australia face fierce competition when hiring, especially in IT, healthcare, and engineering.
• Remote and hybrid roles are on the rise, with 36% of employed people* usually working from home.
• Median weekly earnings are AUD 1,300, with software professionals‘ salaries averaging AUD 1,54,053 ($98,400) annually.
• Superannuation contributions will rise to 12% by mid-2025, raising overall employment costs.*

Today, hiring employees in Australia means navigating a tight labor market, rising employment costs, and a highly regulated legal framework that demands local expertise.

This guide will walk you through the hiring process, covering average salaries, best practices, and how an Employer of Record (EOR) helps reduce administrative burden, costs, and compliance risks.

Why hire employees in Australia?

For companies building global teams, Australia offers a skilled workforce and a launchpad for Asia-Pacific operations, backed by reliable infrastructure and strong IP protection.

Advantages of hiring here include:

• Highly educated workforce: Among the top ten* countries for education globally, Australia produces skilled technology, healthcare, and engineering professionals.
• Unique, business-friendly time zone: Australia’s working hours overlap with Asia and partially with Europe and North America, making it ideal for distributed teams and 24/7 operations.
• Transparent legal framework: Australia has clear employment laws, strong contract enforceability, and established dispute-resolution processes.
• English-speaking workforce: English is the national language, giving Australian hires an advantage in serving North American, UK, and APAC clients. (And yes, a touch of that distinctive accent rarely hurts!)

Though Australia remains a top destination for global hiring, talent competition is high. Consider this overview of local salary benchmarks before making your first offer.

What is the average salary in Australia?

Note: The above table contains approximate averages* updated in April 2025.

When hiring in Australia, your company’s cost per hire will extend beyond salary and can be up to 25–40% over the base salary. More on administrative tasks and compliance when hiring new team members in Australia.

Beyond base salary: Know the hidden hiring costs

Hiring in Australia involves complying with the Fair Work Act 2009, national employment standards (NES), and modern awards. These determine minimum salary, leave entitlements, termination terms, and more.

When hiring staff in Australia, you must factor in:

• Payroll taxes: In Australia, payroll tax is imposed at the state and territory level, with different thresholds and rates.
• Superannuation contributions: Employers must contribute 11.5% (rising to 12% in July 2025) of their earnings to retirement funds
• Mandatory insurance: Workers’ compensation insurance is compulsory in every state, with premiums varying by industry, risk, and jurisdiction.
• Administrative costs: HR software, legal consultation, tax reporting, and compliance tasks
• Leave entitlements: Under National Employment Standards (NES), employees are entitled to four weeks of paid annual leave, ten days of carer’s leave, and long service leave (after ten years of service)

Apart from these costs, companies must also incur the administrative expenses (and hassles) of compliance. Your Human Resources (HR) team may need to purchase HR software for payroll and leave tracking. They must also review contracts, prevent misclassification, and ensure Single Point Reporting to comply with Australian employment laws.

Before you leap: Key hiring considerations in Australia

Australia’s system includes 100+ Modern Awards that apply based on industry, role, and seniority, which affect pay, leave, allowances, and rostering. Misapplying any of, can lead to underpayment claims and legal penalties.

Moreover, employers must comply with 11 minimum entitlements that apply nationwide as per the NES. Companies must also comply with state obligations around payroll tax thresholds, workers’ compensation insurance, and public holiday entitlements.

For global employers, especially those hiring in multiple states or unfamiliar with Australian law, navigating these employment complexities in Australia can mean legal risks and administrative complexity.

Consider how an EOR can ease Australian hiring

Australia’s hiring process is shaped by detailed national and state-specific regulations. That’s where a structured hiring approach — or an EOR — can make all the difference. Let’s explore how.

Hiring employees in Australia: A strategic playbook

The next few steps walk you through the hiring process in Australia and compare how your company can manage it in-house versus working with an EOR.

Step 1: Set up an entity and register with the ATO

You must set up a local entity for directly hiring employees in Australia. This involves registering for:

1. An Australian Business Number (ABN) with the Australian Business Register (ABR)
2. A Tax File Number (TFN) with the Australian Taxation Office (ATO)
3. PAYG withholding for employee income tax

The registration process varies by business structure (e.g., sole proprietary, partnership, or Pty Ltd), and can take 2–4 weeks to complete.

How an EOR can help

Skip entity setup. An EOR like Multiplier can hire Australian talent on your behalf, handle tax registrations, and ensure compliance — ideal if you’re testing the market or hiring a few roles.

Step 2: Register for state-based payroll obligations

To pay your employees compliantly in Australia, you must:

• Register for PAYG (Pay As You Go) tax withholding
• Enroll employees in a superannuation fund
• Set up workers’ compensation insurance, which varies by state and industry
• Stay on top of payroll tax, which applies once your wage bill exceeds the state-specific threshold

Accurate payroll calculations must consider award rates, overtime pay, leave entitlements, and tax deductions. Many businesses also use Single Touch Payroll (STP) for real-time ATO reporting.

How an EOR can help

An EOR takes care of state-based compliance, registers you for required insurances, and ensures superannuation and payroll taxes are paid on time.

Step 3: Understand national and state-level requirements

As an employer in Australia, you are legally entitled to comply with:

• National Employment Standards (NES): 11 minimum entitlements including leave, working hours, and termination
• Modern awards: Industry or occupation-based regulations for minimum pay, allowances, and conditions
• And enterprise agreements (if applicable)

Misinterpreting awards or entitlements can lead to underpayment claims and Fair Work Ombudsman investigations. While most states follow the national laws, in some states like Victoria and Queensland, you must adhere to state laws around public holidays, leave, and termination.

How an EOR can help

An EOR ensures full compliance by interpreting all applicable awards, NES entitlements, and state-level requirements for each hire. From pay rates and leave accruals to termination processes, they apply the correct rules based on the employee’s role, location, and classification, so you avoid costly errors and stay audit-ready at all times.

Step 4: Define roles and source talent

Before you begin recruiting in Australia, you must clarify two things: the employment arrangement and the best channel for sourcing the role.

Recruitment channel

Recruitment in Australia can be done via campus recruitment or via SEEK, Indeed, LinkedIn, or specialist agencies, depending on the role and industry. Campus programs are especially effective for engineering, data science, finance, and consulting roles, with starting salaries for graduates ranging from AUD 65,000 to AUD 80,000 per year.

Get the job description right

Once you’ve identified the right sourcing channel, create a detailed job description. Defining the job role isn’t just a formality — getting it wrong can lead to compliance issues, financial penalties, and reputational risk.

How an EOR can help

Talent acquisition is a strategic step in your global expansion. With an EOR, your teams are free from the administrative and compliance burden of hiring across borders — and can focus on finding the right candidates, building a strong employer brand, and scaling confidently.

Step 5: Issue compliant contracts and avoid misclassification

Once you’ve selected the right candidate, creating a frictionless onboarding process can make all the difference to their performance and employee experience. Begin by creating a compliant contract that protects both your interests.

Employment contracts in Australia must include:

• Position and job responsibilities
• Type of employment (e.g., part-time, casual)
• Base pay and penalty rates
• Leave entitlements (annual, personal, long service)
• Termination notice periods
• Reference to relevant modern award or enterprise agreement

Inadequate or ambiguous contracts can open you to legal disputes, especially around unfair dismissal or wage claims. At this point, you must clearly define the correct employment type.

• Full-time: 38 hours/week, entitled to full leave and benefits
• Part-time: Pro-rata benefits, hours agreed in writing
• Casual: Higher hourly rate, no guaranteed hours, limited leave
• Independent contractor: No entitlements, subject to stricter classification rules

Incorrect classification can lead to backdated taxes, fines, and penalties. For example, labeling a casual employee as a contractor can trigger a Fair Work audit.

How an EOR can help

An EOR drafts fully compliant contracts aligned with Australian employment law, including applicable Modern Awards, NES entitlements, and state-specific rules. They ensure correct classification. It inserts correct award references and penalty rates,

reflecting correct leave, notice, and termination terms — reducing your exposure to Fair Work disputes, underpayment claims, and compliance penalties.

Step 6: Onboard employees and manage reporting

Your onboarding checklist should include:

• TFN declaration (to report income tax)
• Superannuation fund nomination form
• Fair Work Information Statement (a legal requirement)
• Employee records setup (wages, hours, leave)
• Enrolment into Single Touch Payroll (STP) reporting to the ATO

You’ll also need to provide workplace policies, set up employee systems, and handle all hardware/software provisioning.

How an EOR can help

Multiplier standardizes onboarding, ensures all documentation is in place, manages superannuation, and reports on your behalf to regulators.

Compliant, streamlined hiring in Australia takes time, effort, and deep local knowledge. You’re navigating different rules in every state, ongoing payroll administration, and the constant risk of non-compliance.

Quick checklist for hiring in Australia

• Register with the ATO for payroll and taxes
• Draft contracts that align with relevant Modern Awards
• Set up superannuation and ensure timely employer contributions
• Enable Single Touch Payroll (STP) reporting
• Arrange workers’ compensation and public liability insurance
• Fair Work Information Statement shared
• Provide the Fair Work Information Statement to all new hires
• Set up the system to track leave accruals and apply entitlements correctly

An EOR simplifies every step and checks every compliance box so you can focus on building a high-performing team. Here is a snapshot view of what hiring looks like in-house versus with an Employer of Record.

In-house hiring vs. using an Employer of Record (EOR)

If you already have an entity and a strong HR and legal team in the US, in-house hiring may work. But when you’re starting out, hiring small teams, or when speed, compliance, and cost-efficiency matter — an EOR like Multiplier is an elegant and practical alternative. 

With Multiplier, you get:

• Compliant Australian employment contracts, generated within minutes
• Automated tax withholdings and payroll compliance across states
• Unified platform to simplify onboarding, payroll, and employee benefits
• Complete compliance with Australian national and state laws

Why HR teams love Multiplier for hiring in Australia

For global businesses, building a team in Australia means balancing opportunity with careful compliance. You need an EOR that acts as your hiring partner, handling the nuances of Modern Awards, staying on top of shifting state-level rules, and ensuring every contract holds up to scrutiny.

That’s exactly what Multiplier does.

From day one, we align each contract to the right award, handle NES entitlements, and ensure accurate classification, so you’re never exposed to missteps around pay rates, leave loading, or termination terms. With Multiplier, you can generate compliant contracts in minutes.

You don’t have to cross-check Fair Work updates, manage multiple systems, or second-guess your legal footing.

The goal is to create a great employee experience while reducing your risks and administrative hassles. Whether you’re hiring one developer in Sydney or building a full team across Australia, customers love how Multiplier gives you the control you want.

Book a demo today to see how Multiplier can help you scale in Australia with confidence and speed.

Frequently asked questions (FAQs)

Q. What is a good salary in Australia?

A good salary in Australia varies by city. In Sydney or Melbourne, AUD 90,000–100,000+ is comfortable for a single adult, while in regional areas, AUD 75,000+ may suffice.

Q. What are the minimum employment entitlements in Australia?

Apart from the salary, the National Employment Standards (NES) guarantee 11 minimum entitlements, including paid leave, public holidays, and notice of termination.

Q. Do you need to pay superannuation for casual staff?

Yes, employers must contribute superannuation (11%) for all employees earning over AUD 450/month, including casual staff.

Q. What is the difference between an award and an enterprise agreement?

Awards set minimum standards for industries or roles. Enterprise agreements are negotiated contracts that can override awards if they offer better conditions.

Q. Where can you recruit talent in Australia?

Some of the best universities for campus hiring in Australia are:

a. University of Melbourne

b. University of Sydney

c. University of Queensland

d. Australian National University

e. Monash University

f. The University of Western Australia

Another way to hire talent is to post listings on popular job sites and portals or hire through a trusted recruitment agency. For hiring in Australia, the most popular job portals and recruitment agencies are:

Seek

Indeed

Jobsearch

Lloyd Connect

Adecco

Randstad Australia

*Sources

1. Australian Bureau of Statistics – Average Weekly Earnings
2. US News- Best Countries for Education
3. Australian Taxation Office–How Much Super To Pay
4. Talent.com-Average salary in Australia
5. Numbeo – Cost of Living in Australia
6. Fair Work Ombudsman
7. Fair Work Commission – Modern Awards
8. Fair Work Commission – Annual Wage Review
9. Australian Taxation Office – PAYG Withholding
10. Australian Taxation Office – Super Guarantee
11. ATO – STP for employers
12. Business.gov.au – Payroll tax overview
13. Fair Work Ombudsman – FWIS