
Payroll and Benefits Guide Australia
Last updated: Jan 03, 2021
Contributions
Employer
Employer Payroll Contributions
New South Wales
15.85% | Total Employment Cost |
4.85% | Payroll Tax |
1.00% | Medicare |
10.00% | Superannuation (capped at 21,002.06 AUD per year) |
Employer Payroll Contributions
Victoria
15.85% | Total Employment Cost |
4.85% | Payroll Tax |
1.00% | Medicare |
10.00% | Superannuation (capped at 21,002.06 AUD per year) |
Employee
Employee Income Tax
Exempt | Income up to 18,200 AUD |
0.19 AUD for each dollar between | 18,201- 45,000 AUD |
5,092.00 AUD + 0.325 AUD for each dollar between | 45,000- 120,000 AUD |
29,467 + 0.37 AUD for each dollar between | 120,000- 180,000 AUD |
51,667 AUD + 0.45 AUD for each dollar over | 180,000 AUD and over |
Employer taxes
Minimum Wage
General
As of July 1, 2021, the minimum wage in Australia increased to 20.33 AUD per hour (772.60 AUD per week).
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
Employees are paid weekly, bi-monthly, or monthly.
There are no legal requirements to when an employee needs to be paid by, however, it is common to pay employees by the following schedule:
- Monthly – By the 28th to the 30th of the month
- Bi-weekly – Every second week on any agreed day (usually Wednesday or Thursday)
- Bi-monthly – Every 15th and 30th
13th Salary
There are no provisions in the law regarding 13th salaries.
Authority Payments
Authority Payment | Dates | Methods |
ATO | Small withholders up to AUD: 25,000 pa – 28 days from quarter end Medium withholders AUD 25,001- 1000,000 pa- 21 days from EOM Large withholders >100,000 pa – Monday/Thursday about 1 week from payment |
EFT/BPAY/Australia Post – can use wire as well AUD |
Workers compensation | Annually | BPAY AUD |
Superannuation Super Funds |
Monthly or quarterly. If quarterly, 28th day after the end of the each quarter |
Direct Debit/EFT/BPAY AUD |
NSW Office of State Revenue Payroll tax |
7th of the following month. 21st of July if annual |
Direct Debit/BPAY AUD |
VIC State Revenue Office Payroll tax |
7th of the following month. 21st of July if annual |
Direct Debit/BPAY AUD |
QLD Office of State Revenue Payroll tax |
7th of the following month 14th of January of bi-annual 21st of July if annual |
EFT/BPAY AUD |
TAS Office of State Revenue Payroll tax |
7th of the following month. 21st of July if annual |
EFT/BPAY AUD |
Revenue SA Payroll tax |
7th of the following month. 21st of July if annual |
EFT/BPAY AUD |
NT Office of State Revenue Payroll tax |
7th of the following month. 21st of July if annual |
EFT AUD |
Working Hours
General
The standard workweek is 38 hours.
Overtime
Minimum employment conditions are outlined in the Fair Work Act, 2009 and Industrial Awards. Awards are either industry-based or occupation-based. Employees covered by Awards are generally paid overtime. Most Awards provide for overtime to be paid for time worked in excess of 38 hours per week, or in excess of 10 hours per day. Overtime or a penalty is generally paid to Award based employees for work performed on a weekend or a public holiday.
If an employee is not an Award employee, they are considered to be “Award Free.” Award Free employees do not have a statutory right to be paid overtime. However, such employees do have the right to work only 38 plus reasonable additional hours per week. There is no formal definition of what is “reasonable additional hours,” however, such employees are generally expected to work overtime hours that are necessary to complete the job they are employed to do.
Working Week
Monday-Friday
Leave
Paid Time Off
Full-time employees are entitled to 4 weeks of paid leave per year, while employees who work in shifts receive 5 weeks.
Public Holidays
Public holidays vary by state.
Sick Days
Employees are entitled to 10 days paid leave per year which can be used if the employee is sick or if they need to care for a family member.
Maternity Leave
Mothers are entitled to 12 months unpaid maternity leave after working for 12 months with the same employer. Some employers provide paid maternity leave.
In addition, employees can apply to the Federal Government scheme which provides payment for 18 weeks of maternity leave.
PAID MATERNITY LEAVE (DAYS)
Paternity Leave
Fathers are entitled to 5 days unpaid leave at the time of the birth or adoption of a child.
Employees can also apply to the Federal Government scheme for additional leave.
Parental Leave
Parental leave includes maternity and paternity leave, as well as leave for when a child is adopted. To be eligible, an employee must have completed at least 12 months of employment.
Parental leave is an unpaid leave that lasts for 12 months, and it is possible to request an additional 12 months from the employer.
Other Leave
Bereavement– 2 days’ paid leave
Termination
Termination Process
Reason for termination varies based on the number of employees an employee has and the length and type of service:
- 15 employees
Length of Employment: Up to 6 months
Type of employees: Permanent
Reasons for terminations: No specific reason is needed - Over 15 employees:
Length of Employment: 6 months+
Type of employees: Permanent
Reasons for terminations: A valid reason is needed - 15 employees or less:
Length of Employment: Up to 12 months
Type of employees: Permanent
Reasons for terminations: No specific reason is needed - 15 employees or less or less
Length of Employment: 12 months +
Type of employees: Permanent
Reasons for terminations: A valid reason is needed - Casual employees:
Length of Employment: N/A
Type of employees: Casual
Reasons for terminations: Once employed for 12+ months, there must be a valid reason
Employees dismissed in the first 6 months of employment (or 12 months of employment if employed by a small business) cannot make a claim of “unfair dismissal” to the Fair Work Commission. However, there are some exceptions to this known as General Protections matters where there is no minimum engagement period applying.
Unfair dismissal applications are heard in the Fair Work Commission – a specialist employment tribunal.
Notice Period
The notice period is determined by the amount of time the employee has been employed:
- Less than 1 year of employment: 1 weeks’ notice
- 1-3 years of employment: 2 weeks’ notice
- 3-5 years of employment: 3 weeks’ notice
- 5+ years of employment: 4 weeks’
If the employee is over the age of 45 and has been employed for at least 2 years, they are entitled to an additional week of notice.
Severance Pay
Severance pay is given based on a continuous period of service, and the pay rate is given for ordinary hours worked:
- At least 1 year but less than 2 years: 4 weeks’ severance pay
- At least 2 years but less than 3 years: 6 weeks’ severance pay
- At least 3 years but less than 4 years: 7 weeks’ severance pay
- At least 4 years but less than 5 years: 8 weeks’ severance pay
- At least 5 years but less than 6 years: 10 weeks’ severance pay
- At least 6 years but less than 7 years: 11 weeks’ severance pay
- At least 7 years but less than 8 years: 13 weeks’ severance pay
- At least 8 years but less than 9 years: 14 weeks’ severance pay
- At least 9 years but less than 10 years: 16 weeks’ severance pay
- At least 10 years: 12 weeks’ severance pay
Probation Period
The probation period is 6 months, however, if an employer has 15 employees, it is extended to 12 months. In addition, employers are able to shorten the minimum probation period. In doing so, however, the employer forgoes the benefits of a probation period.
VISA
VISA
Australia has a diverse range of Visas that are intended to suit various professions. Each visa is unique and has specific requirements.
- Employer Nomination Scheme (ENS) visa: Employers nominate an employee to live and work in Australia. Under this scheme there are three subclasses:
- Direct entry stream
- Labour agreement scheme
- Temporary residence transition stream.
Processing time for these visas can take anywhere from 6-17 months.
- Temporary activity and specialist visas – Short stay work visa for specific types or highly specialized work.
Temporary Work Visas
- Temporary Skill Shortage visa – sponsorship needed
- Temporary Graduate visa
- Skilled – Recognised Graduate visa
- Skilled Regional (Provisional) visa
- Business Innovation and Investment (Provisional) visa– Sponsorship needed
Permanent Work Visas
- Regional Sponsor Migration Scheme – Sponsorship needed
- Permanent Residence (Skilled Regional) Visa Open for applications November 2022
- Employer Nomination Scheme visa– Sponsorship needed
- Skilled Independent visa
- Skilled Nominated visa – Sponsorship needed
- Skilled Regional visa
- Business Innovation and Investment (Permanent) visa – Sponsorship needed
- Business Talent (Permanent) Visa – Sponsorship needed
- Distinguished Talent visa – Sponsorship needed
- Distinguished Talent visa – Sponsorship needed
Remote Working
General
The Australian government passed the “Secure Jobs, Better Pay” Act legislation that introduces the right for workers to request flexible working arrangements to include no just those who have a disability and those who are aged 55 and older but also to employees who are pregnant and those who have experienced family or domestic violence.
Employers will be required to meet with employees to discuss their flexible work arrangement requests. Employers will need to evaluate such requests and try to accommodate the requests including offering alternative arrangements. If the employer and employee cannot reach an agreement, then an employer is entitled to reject the request on reasonable business grounds. The employer should provide a written explanation of the reasons for refusal within 21 days of receiving the request.
Employees will be allowed to apply to the Fair Works Commission (FWC) to challenge an employer’s refusal or a failure to respond to a flexible work arrangement request. The FWC will have the power to conciliate and arbitrate, including ordering employers to provide additional explanation, granting the employee’s request, or ordering alternative arrangements to accommodate the request.
VAT
General
Goods and Service Tax (GST) is 10%.
For hiring in Australia without a local entity see our Australian PEO service
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Version History
Superannuation increased to 10.00%
Questions & Answers

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Payroll and Benefits Guide
in Australia
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
Day | Date | Holiday | Notes |
---|---|---|---|
Saturday | Jan-1 | New Year's Day | |
Tuesday | Feb-21 | Australia Day | |
Tuesday | Feb-21 | Easter Saturday | |
Tuesday | Feb-21 | Easter Monday | |
Tuesday | Feb-21 | Easter Monday | |
Tuesday | Feb-21 | Christmas Day | |
Tuesday | Feb-21 | Christmas Day | |
Tuesday | Feb-21 | Day in Lieu of Christmas Day |
Who can request flexible work arrangement? How does it work?
Hi Brianna, thank you for your question! This applies to all employees that are covered by the National Employment Standard (NES). Parents of school-age children, caregivers, disabled employees, employees over the age of 55, an employee experiencing violence from a family member, and a few others can request flexible work arrangements. This could mean reduces working hours, change in schedule, location where work is conducted. To be eligible, the employee must have completed at least 12 months of employment. The employee must make a formal written request detailing the reason for the request, and the employer has 21 days to respond and must give reason if the request is denied. It is important to note that there is no obligation on the employer side to grant the request.