Employer Of Record in Australia
We make it easy and painless to expand your business into Australia. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.
Accelerate your growth into Australia Compliantly and hassle-free
How we can help you expand in Australia
As your EOR in Australia we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in Australia provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.
Expand to Australia with Serviap Global
Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity.
In just a few days, you can easily and safely build a presence in Australia being sure that your staff will be hired in compliance with labor and tax regulations.
Quick Facts
Currency:
Australian Dollar (AUD)
Capital:
Canberra
Payroll Cycle:
Monthly
Language(s):
English
Australia Country Facts
Australia is the only nation to govern an entire continent and its outlying islands, in fact you are never more than 1000km away from a beach in Australia, making it a wonderful beachy paradise. On top of this, Australia is the 6th biggest country in the world. It’s a country of immigrants with an extremely diversified culture resulting in a diverse consumer market providing tremendous opportunities for businesses.
The Economy
Australia has one of the biggest capitalist economies worldwide. It is a high-growth, low-inflation, low interest rate economy, and is vibrantly growing. There is a well run, efficient government sector, who have a flexible labor market with a competitive business sector.
The Importance of Small and Medium-sized Companies
Small and medium-sized enterprises (SMEs) are an integral part of Australia’s economic fabric. SMEs make up most of the businesses operating in Australia and contribute to innovation, employment and wealth generation.
Population Characteristics
Australia offers one of the best education systems in the world boasting a 99% literacy rate. Technological change is likely to have profound effects on how work is accomplished by including accommodating more flexible work practice and fostering collaboration in a team-based work style.
Economic Opportunities
Australians enjoy a higher than average disposable income, which means more available capital to invest, and reasonable tax rates at the corporate level. The Australian Government made reforms to streamline regulation while maintaining investor protection and market integrity.
Key Sectors of the National Economy
The best key sectors in this country are:
- Healthcare
- Finance
- Media and entertainment
- Manufacturing
- Service industry
- Mining
- Tourism
Human Talent
Australia has seven universities in the top 100 – the third highest number globally.
The two industries, after healthcare of course, have made the biggest contributions to growing non-routine
jobs such as scientific and technical services plus education and training.
Prominent Cities for Business
- Sydney
Sydney’s business center is a harbor city with lovely beaches. Australia’s most populous capital is one of the world’s most cosmopolitan cities – and a strategic center for banks, fund managers and insurance groups, along with other high-end services such as law firms, information technology and telecommunications providers. - Melbourne
Often referred to as the nation’s capital of food, wine and culture. Melbourne has more manufacturing
and less financial services than Sydney. - Brisbane
Around 180 resource companies are headquartered in Brisbane. The state government has implemented a strategy to help diversify Brisbane’s economy and boost investment in high tech industries such as biotechnology. - Perth
Perth has entrenched itself as the nation’s energy and mining capital.
Technological Ecosystem
Australia’s technology ecosystem is growing rapidly and is an exciting period of innovation and expansion according to the Australian Investment Council. The cost of office space in Australia is low relative to major business centers internationally, while Australian cities consistently achieve top rankings for their quality of life.
Facilities for Foreign Investment
The rapid growth of technology startups in Australia has attracted an increasing amount of venture capital funding.
The Australian Government has also boosted development of the technology industry with industry growth centers. Established in strategic priority areas with Australian Government funding the centers build capability and collaborative networks.
Business Culture in Australia
- Straight shooters
Australians are straight shooters in business. They are not looking to build a close relationship. Low Key Australians appreciate modesty, so try to not blow your own horn and what’s more, aggressive sales tactics are a sure-fire way to fail. Try to be factual, friendly and to the point. - Up For Debate
If you happen across someone who is quite controversial and challenges you during a meeting, remember, here nothing is personal. Aussies love to debate, and will start them often with provocative statements. Using humor at a time like this is well ingrained into their culture. - Keep it Casual
Australians are not very formal, so greetings are casual and relaxed – a handshake and a smile are appropriate.
Australia Gastronomy: regional and traditional cuisines
A favorite is barbecued snags (aka sausages) which is likely because Aussies love to grill, and there’s nothing more important than turning up with the much beloved traditional Australian sausages. They are usually pork or beef, but if you’re feeling adventurous, there are other animals to sample. Lamingtons are widely recognized as the ‘National Cake of Australia’. This sweet treat is an Australian icon, named as it was after Lord Lamington, a former Governor of Queensland. The lamington is a square-shaped sponge cake, which is then dipped into chocolate and coated with coconut. Other variations include two layers and a cream or jam filling.
Meat pies are a traditional Australian meat pie that should be hand-sized, filled with mincemeat and gravy, then topped with tomato sauce. Jump in and feast on fresh Australian barramundi, a name which means ‘large-scaled river fish’ in the Aboriginal language. Grilled or seared skin-side first this is a fish that is a healthy alternative and cooked in an Aussie way.
General Highlights
| Year | 2022 |
| Country | Australia |
| Capital | Canberra |
| Num. States / Province | Six states and two territories |
| Principal Cities | Sydney, Melbourne, Brisbane, Perth |
| Language | Australia has no official language however English is by far the most commonly spoken |
| Local Currency | Australian Dollar (AUD) |
| Major Religion | Christian, Catholic and Hinduism |
| Date Format | dd/mm/yyyy |
| Thousands Separator Format | 99,999,999.99 |
| Country Dial Code | +61 |
Time Zone | Multiple Time Zones UTC +8 – +11 |
| Population | 25.7 million |
Border Countries | The continents that border this ocean are Australia to the east, Asia, to the north, and Africa to the west. |
| Continental surface | 7,692,024 km2 |
| Fiscal Year | July 1 – June 30 |
| VAT % | 10% |
| Minimum Wage | $17.70 AUD per hour |
| Taxpayer Identification Number Name in the country | TFN |
| Current President | Scott Morrison |
What you need to know about employing personal in Australia:
Laws and Agencies that regulate labor relationships
| Laws | Brief Description |
| The Fair Work Act 2009 (FW Act) and the Fair Work Regulations 2009 | This governs the employee / employer relationship in Australia. They provide a safety net of minimum entitlements, prevent discrimination against employees plus enable flexible working arrangements and fairness at work. |
| Australian Tax Office | This is in charge of taxes. |
Social Welfare System | • Sickness Allowance is paid to employees and the self-employed who are temporarily incapable of working as a result of illness. To be eligible you must obtain a medical certificate signed by a doctor to confirm that the individual is unable to work as normal. • Child Care Benefit provides assistance with the cost of child care. Individuals are eligible for this benefit only if they are responsible for paying for child care fees for their own child, and use a child care service which is registered. All eligible families can get up to 24 hours of benefit for approved child care, per child, each week. • Australia has a Paid Parental Leave scheme for working parents. It allows eligible individuals to receive the National Minimum Wage for 18 weeks. Parental Leave Pay is available to Australian residents who are the primary caregiver of a newborn or recently adopted child. • A Newborn upfront payment or Newborn Supplement is also available to help with the costs of a newborn baby or adopted child. • The Age Pension provides for people of retirement age so they have an adequate income. To receive Age Pension an individual must be an Australian resident, and remain so for ten years. |
Key Tax and Labor Authorities
The Australian Taxation Office (ATO) | Australian statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering the Australian federal taxation system, superannuation |
| The Employment Relations Authority | This handles, Australian labor law concerns Commonwealth, unions and employers in Australia, state, and common law on rights and duties of workers. |
Labor Contracts
Australian labour law | Australian labor law has a dual structure, where some employment issues and relationships are governed by Commonwealth laws, and others are governed by state laws or the common law. |
National Employment Standards (NES) | There are 11 minimum entitlements which must be provided to all national workplace systems for employees in Australia.
These minimum standards of employment include which hours of work the employee will do, flexible working arrangements and leave as well as others. |
| The International Labor Organization | They are members. |
| Work Hours | There are 38 hours per week for a permanent full-time employee, and any reasonable extra hours. |
Basic Requirements
The NES requires a set of 11 minimum entitlements which must be provided to all national workplace systems in Australia. These minimum standards of employment include hours of work, flexible working arrangements and leave and related entitlements, amongst others.
Payroll
Legal Benefits in Australia
| Minimum Wage | $773 AUD/week (approximately $526 USD) |
| Overtime | Often employment contracts include a clause, in this it will state that an employee may be expected to work ‘reasonable overtime’ at no extra cost. |
Annual bonus The superannuation guarantee (SG) | Common bonuses may include: performance or target-based bonuses, and seasonal bonuses, such as Christmas bonuses. Employers have to pay the SG to eligible employees (generally those aged over 18 who earn over $450 a month). Legislation states an SG increase of 0.5% a year until it reaches 12% by 2025. |
Workers’ compensation | Workers’ compensation helps to provide a sense of safety for workers injured on the job. This comes in the form of insurance which is paid for by employers to support their employees who are injured at work or because of their work. Support can include one-off lump sum payments, medical and rehabilitation expenses, income replacement, and support for workers to return to work. |
Vacations or PTO | Paid annual leave is defined as the period of time annually, when workers can take time off from their work while still receiving income and other benefits. This is in addition to public holidays, sick leave, casual leave and maternity/paternity leave. |
Leaves of Absence The Fair Work Act 2009 (Cth) | • 20 days’ paid yearly • 10 days’ paid personal/carer’s leave yearly (permanent carers only, although casual carers can take up to 2 days’ a year) • community services leave • at least 10 public holidays • 2 days’ compassionate leave • 12 months’ unpaid parental leave |
Employers Contribution or Labor Cost – 8% in Australia
Annual Taxable Income
| Over this amount | Not over this amount | Tax % on Excess |
| $0 | $18,200.00 | 0% |
| $18,200.01 | $45,000.00 | 19% |
| $45,000.01 | $120,000.00 | 32.5% |
| $120,000.01 | $180,000.00 | 37% |
| $180,000.01 and up | 45% | |
| Rs.10,00,000 | ||
| Rs. 12,50,001 | Rs. 15,00,000 | Rs.125000 + 25% of total income exceeding Rs.12,50,000 |
| Above Rs. 15,00,000 | Rs.187500 + 30% of total income exceeding Rs.15,00,000 |
Corporate Tax Rates
In Australia, the Corporate Income tax rate is collected by the government from companies and it’s an amount based on the net income companies gain when they have a business. This is normally counted as per year.
| Taxable Gross Income | Tax Rate |
| All | Flat 30% in 2021, expected to be around 25% in 2022 |
Disability
How much Disability Support Pension (DSP) an employee gets depends on age and living conditions. To get DSP, an employee must meet both:
- Non-medical rules
- Medical rules.
- Non-medical rules include things like age, residence status, and income and assets
Public Holidays
The public holidays differ by region but basically:
| Date | Holiday Name |
| 1 January | New Year’s Day |
| 26 January | Australia Day |
| 14 March | Canberra Day |
| Friday before Easter | Good Friday |
| Saturday before Easter | Easter Saturday |
| Easter | Easter Sunday |
| Monday after Easter | Easter Monday |
| 25 April | Anzac Day |
| 30 May | Reconciliation Day |
| 13 June | Queen’s Birthday |
| 3 October | Labour Day |
| 25 December | Christmas Day |
| 26 December | Boxing Day |
Termination
Australian labor law outlines rules for termination of an employment contract:
| Type of Termination | Brief Description |
Justified Dismissal | Employment is terminated because the job is no longer needed or because the employer becomes insolvent/bankrupt. It can also happen when the business: • Introduces new technology that replaces someone’s job • Goes through a restructure or merger and acquisition • Relocates interstate or overseas • Slows down because of lower sales or production |
Unjustified Dismissal | • Your dismissal was harsh, unreasonable or unjust (i.e. without a valid reason, you weren’t notified of a reason or given an opportunity to respond to the reason). • Any of the following: • Race • Religion • Sex • Age • Marital status • Disability The employee may consult with an unfair dismissal lawyer |
| Voluntary Resignation | When an employee gives up employment voluntarily to move on to another employer or at the point their contract ends |
Other forms of compensation upon termination include: In Australia, severance is called “redundancy pay”.
| Length of Employment | Severance Amount |
| 1-2 years | 4 weeks |
| 2-3 years | 6 weeks |
| 3-4 years | 7 weeks |
| 4-5 years | 8 weeks |
| 5-6 years | 10 weeks |
| 6-7 years | 11 weeks |
| 7-8 years | 13 weeks |
| 8-9 years | 14 weeks |
| 9-10 years | 16 weeks |
| 10 years or more | 12 weeks* |
* There is a reduction in redundancy pay from 16 weeks to 12 weeks for employees with at least 10 years continuous service. This is consistent with the 2004 Redundancy Case decision made by the Australian Industrial Relations Commission.
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