Australia
Stay ahead of regulatory changes in Australia with Lerio's proactive HR solutions.
Hiring in Australia at a glance
$ / AUD
38 hours / week
7 days holidays / year
The most common payment frequency is monthly.
By law, an employee must be paid at least once a month. Therefore weekly and biweekly payments are also common.
English
26M
$23.23 / hour
1 July to 30 June
Employment Tax
- Medicare: 2%
- Income tax: Sliding scale based on income – see employee tax rates (if any) below
- Superannuation guarantee charge: 11.0%
- Workers compensation insurance: 0.14-1.0%
- Payroll tax: 5 – 7%
*Depends on territory
Income Tax
| Taxable Annual Income | Tax Rate (%) | ||
| $0 - $18 200 | 0% | ||
| $18 201 - $45 000 | 19% | ||
| $45 001 - $120 000 | 32.5% | ||
| $120 001 - $180 000 | 37% | ||
| $180 001 + | 45% |
Employer of Record
in Australia
An Employer of Record serves as the official employer of an employee. Ensuring adherence to all compliance related to employing in Australia. This includes:
- Payroll and benefit administration
- Payroll processing
- Seasonal tax filing
- Payment of employment related taxes
- Providing accurate and timely payslips to employees
- Employment agreements
- Labour law
Employer of
Record Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
Umbrella Process
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Employee Benefits
- Medical insurance
- Pension
- Workers Compensation Insurance
- Flexible Work (after 1 year of employment)
- Disability Care
Non-mandatory
Employee Benefits
- Life and Disability Insurance
- Employee Assistance Programme (EAP)
- Childcare facilities or subsidies
- Annual bonuses
- Additional time off
Employee Rights
- A safe and healthy work environment free from risk
- Protection from bullying, discrimination and sexual harassment
- Fair and just dismissals
- Protection of personal information
- Access to information such as company policies and codes of conducts
- Payslips showing all deductions and income
- Flexible working after the required amount of tenure
- Equal and equitable opportunities and treatment
- Whistleblower protection
Leave
4 weeks per year
Based on the hours of work.
20 weeks paid (minimum wage from the government scheme)
Up to 24 months unpaid
Pregnant employees can start leave 6 weeks before expected delivery date and the other parent can take leave at any time within the first 2 years of the child’s life.
Note:
Adoptive parents of a child under 16 are entitled to the same.
Must have been at the company for 12 months.
10 paid days per year (employer pays).
These days can be used for illness or to care for a close family member.
2 days if a close family member has a severe injury, illness, or death.
2-3 months paid sabbatical after 5 – 10 years of employment (depends on territory).
10 paid days per year if experiencing abuse by a close family/household member.
Unpaid time off to do community service related to an emergency or natural disaster, and paid time off for jury duty.
Depends on tenure:
- 1 year or less: 1 weeks’ notice
- 1 – 3 years: 2 weeks’ notice
- 3 – 5 years: 3 weeks’ notice
- 5 or more years: 4 weeks’ notice
Employees over 45 years old who have been at a company for 2 or more years are entitled to an additional week’s notice.
Probation
3 – 6 months although not a statutory requirement.
What is a work permit in Australia?
Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country.
In Australia, the “work permit” required to legally live and work legally is referred to simply as a work visa and this is the only document needed.
Who needs a work permit in Australia?
Australia generally requires everyone who is not a citizen or a permanent resident to go through a process of obtaining a work permit. There are some exceptions to this however. Though still requiring visas in many cases, certain work visas have less requirements or longer durations for citizens from New Zealand, England and Hong Kong. In addition, family members of Australian citizens and foreign citizens who hold certain work permits can join them and will be allowed to work.
How long does it take to get a work permit in Australia?
It varies significantly between visas. On average:
- Temporary visas: 30 days
- Permanent visas: 9 months
- Regional visas: 3 months
You can see the average processing times here for every type of visa.
Types of work visas in Australia
Australia has many different types of work visas and some of them differ very slightly. Within some of the categories below, there’s also multiple different streams. It’s a lot to understand! To understand the type of visa you may need, the easiest is to use the Visa Finder on the Australian Department of Home Affairs website which will guide you through a set of questions to decide which of these is the most suitable:
Business Innovation and Investment (provisional) visa
Business Innovation and Investment visa grants you the authorization to own and oversee a business in Australia, engage in business and investment endeavours within Australia, or pursue entrepreneurial ventures in the country.
Global Talent visa
The Global Talent visa is designated for individuals with a globally recognized track record of extraordinary and remarkable accomplishments in a qualifying field, and it offers permanent residency.
Employer Nomination Scheme
The Employer Nomination Scheme visa enables skilled workers, nominated by their employer, to establish permanent residence in Australia and engage in employment.
Regional Sponsored Migration Scheme
The Regional Sponsored Migration Scheme visa grants skilled workers, nominated by their employer in regional Australia, the opportunity to reside and work permanently in the country.
Skilled Employer Sponsored Regional (provisional) visa
The Skilled Employer Sponsored Regional (provisional) visa empowers regional employers to tackle identified labour shortages in their area by sponsoring skilled workers when suitable Australian candidates with the required skills are unavailable.
Skilled Independent visa
The Skilled Independent visa is designed for invited workers, qualified New Zealand citizens, and eligible passport holders from Hong Kong or British National (Overseas, granting them the opportunity to permanently reside and work anywhere in Australia.
Skilled Regional (provisional)
The Skilled Regional (provisional) visa is for skilled workers seeking to reside and work in regional Australia, the option to bring your family is available. If granted this visa, you may also be eligible to apply for the Skilled Regional (Permanent) visa (subclass 887).
Temporary Skill Shortage visa
The Temporary Skill Shortage visa allows an employer to sponsor a qualified worker with the appropriate skills to fill a position for which they cannot find a suitably skilled Australian candidate.
Other visas
In addition, visas are available for short assignments (3 – 6 months), graduate programmes, international relations and investment. The full list is here.
Application process in Australia
The application process varies between visa types, below is a general outline of the process but see the links at the end for visa-specific process steps
Nomination application / Expression of Interest / Invitation
- The first step is very visa dependent. See below.
Collect documents and assessments
Employee to ensure they have these
- If required, do the skills assessments to prove skills and qualifications for this role.
- If required, do an english assessment to prove your proficiency therein
- Schedule a medical exam. You can do this before or after submitting your application
- The nomination Transaction Reference Number from the employer
Apply for the visa
This application is completed by the employee
- The application must be completed and submitted online in ImmiAccount.
- Attach the required documents
- Pay the application fee
- Another Transaction Reference Number will be provided once the application is submitted
Before travelling
- Have the medical assessment
- You may be asked to go to a consulate of embassy to provide your biometric information
- Additional documents may be requested. These can be uploaded through ImmiAccount
Visa outcome
- You will be notified in writing of the outcome of your application
- When approved, the following information will be given you:
- Visa grant number
- Visa start date
- Visa conditions
Travel and start
Visa-specific application details
Business Innovation and Investment visa
The Employer Nomination Scheme visa
The Regional Sponsored Migration Scheme visa
The Skilled Employer Sponsored Regional (provisional) visa
Contact Us
If you have questions - feel free to ask them. We are happy to help our clients.