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Australia

Basic Economic Summary

Overview

Australia expects a demand for skills in the digital transformation arena and many industries in Australia drive their growth through technical specialists and knowledge expertise. As a result, starting IT salaries are expected to rise as technology continues to play a pivotal role in many organisations. Top jobs that are in demand include DevOps Engineers, Cyber Securities Specialists and Data Scientists. (Robert Walters 2020 salary guide)

Basic Information

  • Local Languages: English (Official)
  • Major Economic Hubs: Canberra, Melbourne, Sydney
  • Currency: Australian Dollar (AUD)
  • Population: 25.5 million (2020)
  • Date Format: yyyy/mm/dd

Useful Information

  • GDP Per Capita (in USD): $54,907
  • Exchange Rate (AUD/USD): 0.76
  • PISA Ranking: 21

Salary Data

Average Monthly Salary of Jobs:

The table below shows some job roles of Australian professionals. The ranges are mainly for professionals from New South Wales, and they may defer based on the territories. Please refer to the Robert Walters 2020 Salary Survey for more information.

Job TitleAverage Salary Range (AUD)Average Salary Range (USD)
Financial Accountant7,500 – 9,5835,700 – 7,283
Engineer (Tech & Transformation)11,667 – 15,8338,867 – 12,033
Software Developer9,583 – 12,9177,283 – 9,817
Data Analyst5,417 – 11,6674,117 – 8,867
UX Designer6,667 – 12,5005,067 – 9,500
Project Manager10,833 – 14,1678,233 – 10,767
Sales Executive4,583 – 6,6673,483 – 5,067

27% of the tech sector labour force expect a 1-3% annual increase in salary, another 24% expect a 3-6% annual increase in salary while 21% expect no increase.

Talent Sourcing Tips

English Proficiency: High Proficiency

Number of LinkedIn Users (2019): 10,970,000

Top Local Job Portals: Seek, Indeed, Jobsearch.gov.au

More information on job portals in Australia can be found here.

Top Recruitment Agencies: Lloyd Connect Melbourne, Adecco, Randstad Australia

Taxes

Employer Payroll Tax

Type of TaxContribution (%)
Superannuation guarantee10%
Payroll tax (New South Wales)4.85%

The employer payroll tax can be found here.

Employee Payroll Tax

Type of TaxContribution (%)
Medicare levy2%

Employee Monthly Income Tax

Income group (AUD)Contribution (%)
0 – 1,516.67$0
1,516.67- 3,7501.583 cents for each $0.08 over $1,516.67
3,750 – 10,000$424.33 + 2.71 cents for each $0.08 over $3,750
10,000- 15,000$2,455.58 plus 3.08 cents for each $0.08 over $10,000
15,000 and above$4,305.58 plus 3.75 cents for each $0.08 over $15,000

Australia follows a progressive income tax model. The employee payroll and income tax can be found here.

Minimum Wage & Payroll

Minimum Wage

The minimum wage is at AUD$753.80 per month or AUS$19.84 per hour.

Payroll Cycle

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

Bonus

13th month salary

Not mandatory.

Working Hours & Statutory Leave

Maximum working hours

Standard 38 hours work week.

Overtime pay

Each industry award and agreement has its own overtime rules. Most awards allow for overtime of 38 hours per week, or in excess of 10 hours per day.

Compensation is based on agreement in contract. An overtime policy is recommended, stating how overtime requests will be made, allocated, recorded and monitored.

Public Holidays

The public holidays differ across regions and can be found here.

Annual Paid Leave

Full-time employees are entitled to 4 weeks of paid leave per year. Employees who work in shifts receive 5 weeks of paid leave per year.

Sick Leave

10 days of paid leave inclusive of leave to take care of family members.

Parental Leave

Maternity Leave

12 months of unpaid maternity leave after working for 1 year with employer. Employees may also apply to the Federal Government Scheme which provides 18 weeks of paid maternity leave.

Paternity Leave

Fathers are entitled to 5 days unpaid leave at time of birth or adoption of child. They may also apply to the Federal Government for additional leave.

Paternal Leave

If the employee has been working for 1 year, they are entitled to unpaid leave that lasts for 1 year, and it is possible to request an additional 1 year from the employer.

Offboarding & Termination

Termination

Termination Process

Termination process depends on years of employment, company size and type of employment.

Termination Process

Years of EmploymentCompany SizeEmployment Type
≤6 months> 15Permanent
> 6 months> 15Permanent
≤12 months≤15Permanent
> 12 months≤15Permanent
≥12 monthsAllCasual

Notice Period
Years of EmploymentNotice Period
≤ 1 year1 week
1 year – 3 years2 week
3 years – 5 years3 week
> 5 years4 week

Severance Pay

Severance pay or redundancy pay depends on whether it is termination with cause or without cause.

Redundancy Pay

Years of EmploymentRedundancy Pay
1 – 24 weeks
2 – 36 weeks
3 – 47 weeks
4 – 58 weeks
5 – 610 weeks
6 – 711 weeks
7 – 813 weeks
8 – 914 weeks
9 – 1016 weeks
> 1012 weeks

Probation period

Not mandatory. Employees on probation will receive the same entitlements as someone who isn’t in a probation period. This includes receiving notice when employment ends and having their unused accumulated annual leave hours paid out even if they fail the probation.

VAT

10%

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