Talent Wiki - Australia

Your quick guide on talent and labor compliance norms in Australia

Capital

Canberra

Currency

Australian Dollar (AUD)

Languages

English (Official)

Payroll Frequency

Monthly/Bi-monthly/Bi-weekly depending on state provisions

GDP per Capita

$65,005

Employer Tax

15.85%

Supplementary Guide for Employment and Expansion in Australia

Talent Wiki - Australia

Subsidiaries

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Work permit

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Payroll

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Benefits & Compensation

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Background checks

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Employment Act

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Sole Proprietorship

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Starting business

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Talent Overview

A highly developed, high-income country, Australia, has the world’s 13th biggest economy. It ranks at the 8th position in human development and 10th in the world per capita income. An abundance of natural resources and robust international trade forms the backbone of the Australian economy.

Major economic hubs:

Canberra, Melbourne, Sydney

Skills in demand:

Digital Transformation Skills, IT industry, Technical Specialists

Local Universities

The top local universities in Australia are as follows:

The University of New South Wales

RANKING

Australia : 1

World : 54

Monash University

RANKING

Australia : 2

World : 56

University of Sydney

RANKING

Australia : 3

World : 65

University of Melbourne

RANKING

Australia : 4

World : 67

University of Queensland

RANKING

Australia : 5

World : 76

Salary Data

Some of the top jobs in Australia and their annual salaries are listed below:

Job Title Average Salary (AUD) Average Salary (USD)
Accountant 5,510 3,701.07
Financial Analyst 10,100 6,784.17
Graphic Designer 4,680 3,143.56
Business Analyst 9,250 6,213.22
Customer Service Manager 10,800 7,254.36
Human Resource Officer 4,510 3,029.37

Talent Sourcing Tips

Top Local Job Boards:

Seek, IndeedJobsearch.gov.au

Number of LinkedIn users:

13,490,000

Top Recruitment Agencies:

Lloyd Connect MelbourneAdeccoRandstad Australia

Employing in Australia

Employment and workplace relations in Australia are governed by the Fair Work Act of 2009. The Australian labor law framework is derived from the following:

  • Constitution
  • Federal and state laws
  • Statutory agreements
  • Employment contracts

Employee Contract:

No statutory requirements are mentioned in the language of the contract.

Probation Period:

The usual probationary period followed in Australia is from one to six months.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Years day National Holiday
2 Jan New Years holiday National Holiday
26 Jan Australia day National Holiday
7 Apr Good Friday National Holiday
8 Apr Easter Saturday National Holiday
9 Apr Easter Sunday National Holiday
10 Apr Easter Monday National Holiday
25 Apr ANZAC day National Holiday
12 Jun Queen’s birthday National Holiday
2 Oct Labour day National Holiday
25 Dec Christmas day National Holiday
26 Dec Boxing day National Holiday

Employee Leaves:

Type of leave Time Period Mandatory
Annual leave/Earned Leave 20 days Yes
Sick Leave 10 days Yes
Maternity Leave As per employment contract Yes

Payroll

Payroll Cycle

Employees are paid bi-weekly (every second week), bi-monthly (15th and 30th), or monthly (28th to 30th).

Minimum Wage

The minimum wage is  21.38 AUD per hour from July 2022.

Overtime Pay

On a general note, for overtime on weekdays, the pay is 1.5 times the regular pay for the first 3 hours of overtime and, after that, twice the regular pay. On Sundays, the payment is twice the rate of regular pay. These vary depending on the industries and states.

Bonus

13th Month Pay:

It is not mandatory to have 13th month pay in Australia.

Employee Benefits:

  • Healthcare
  • Maternity leave
  • Paternity leave
  • Stock options (Common for listed companies)
  • Superannuation

Taxes

Employer Payroll Tax:

Superannuation Guarantee Percentage – 10.5% (till 2023 July)

Payroll tax rate for individual states:

An entity will be exempt from payroll tax obligations if it has a quantum of wages that falls beneath the identified number.

Employee Payroll Tax:

Employees have to pay the medicare levy at 2%.

Employee Income Tax:

Taxable income Tax(AUD) Tax % on Excess
0 – 18,200 0%
18,200 – 45,000 19%
45,000 – 120,000 5,092 32.5%
120,000 – 180,000 29,467 37%
180,000 – onward 51,667 45%

VAT:

Australia has GST instead of VAT. The Standard rate is 10%.

Offboarding & Termination

An employee can resign or be terminated by the employer. The major grounds for termination include:

  • Redundancy(operational changes)
  • Conduct
  • Poor performance

Notice period varies depending on the length of employment. During the probationary period, it is from 7 – 30 days, and for permanent employees, it ranges from one to twelve weeks.

An employee’s job might be affected by redundancy and the redundancy/severance pay for different employment terms in Australia are as follows:

Period of Employment Severance Pay
Between 1 to 2 years service 4 weeks’ pay
Between 2 to 3 years service 6 weeks’ pay
Between 3 to 4 years service 7 weeks’ pay
Between 4 to 5 years service 8 weeks’ pay
Between 5 to 6 years service 10 weeks’ pay
Between 6 to 7 years service 11 weeks’ pay
Between 7 to 8 years service 13 weeks’ pay
Between 8 to 9 years service 14 weeks’ pay
Between 9 to 10 years service 16 weeks’ pay
Above 10 years service 12 weeks’ pay*

*Note, there is a decrease in redundancy pay from 16 weeks to 12 weeks for employees with above 10 years of continuous employment service.

Visa and Immigration

Foreign nationals looking to work in Australia need to apply for a visa.  Application is taken in through the various immigration programs administered by the Department of Home Affairs (DHA) of Australia.

The Temporary Skills Short visa (subclass 482) can be utilized by businesses to meet skill shortages by hiring foreign nationals to live and work in Australia for 2 years – or up to 4 years in some circumstances – where a suitably skilled Australian cannot be engaged.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration