Hiring guide in Australia

Have the latest guide for hiring in Australia through Native Teams

What should I know about hiring in Australia?

Hiring workers in Australia can be difficult if you aren’t acquainted with the local laws and regulations. Learning the fundamentals of employment in Australia is essential before you begin the process. 

As a first step, businesses must ensure they align with the Fair Work Act of 2009, which establishes baseline requirements for things like pay, benefits, and how a contract can be ended. 

In addition, When recruiting, employers must ensure they follow anti-discrimination laws and provide equal opportunities to all applicants. Finally, it’s wise to have a comprehensive onboarding procedure in place, one that includes handing out contracts, policies, and health and safety guidelines to employees.

Why is Australia a good choice for finding remote employees?

Several factors make Australia an attractive location from which to recruit remote employees. Firstly, the country’s workforce possesses a high level of education and technological expertise, essential for many positions that can be performed remotely. 

In addition, Australia’s time zone is in sync with many other countries, facilitating remote workers’ ability to work together and communicate successfully with teams in other parts of the globe. Furthermore, Australia has a mindset of work-life balance, which can make remote workers more motivated and productive.

Finally, Australia’s political and economic climate is stable, providing peace of mind to businesses in search of remote employees. Companies seeking to grow their remote teams can find a talented and dependable workforce in Australia thanks to its high standard of living and high quality of life.

How can Native Teams help you hire in Australia

If you aren’t familiar with the local Australian employment market, it can be challenging to determine who the best candidates are. Here’s where support from Native Teams would come in handy! Through our employer of record services, Native Teams can assist you in all aspects of recruiting, onboarding, and compensating your Australian employees in accordance with all applicable laws.

 Hire your first Australian employee with Native Teams.

Legal requirements for hiring in Australia

Minimum wage

The national minimum wage is AUD 21.38 per hour or AUD 812.60 per week.

Contributions & taxes

Employer tax

The total cost of employment is 15.85%.

Corporate tax

The federal tax rate for corporations is 30%, with the exception of “small or medium company” corporations, which pay a reduced rate of 25%.

Employee tax

  • From 18,201 to 45,000 AUD: 0.19 AUD;
  • From 45,000 to 120,000 AUD: 5,092.00 AUD + 0.325 AUD;
  • From 120,000 to 180,000 AUD: 29,467 + 0.37 AUD;
  • From 29,467 + 0.37 AUD: 51,667 AUD + 0.45 AUD.

Income tax

Australia has a progressive tax structure whereby residents must pay a greater percentage of their income in taxation.

To calculate the salary and taxes in Australia please click here.

Payroll cycle

Workers receive weekly, bimonthly, or monthly payments.   

Although there are no formal deadlines for paying employees, it is typical to do so according to the following schedule:

  • Every 15th and 30th of each month;
  • Once every two weeks, on a predetermined day 
  • Every month, between the 28th and the 30th.

Is there a 13th salary in Australia?

In Australia, the payment of a 13th salary is not mandated by law.

Labor rules

Probation period

Probation typically lasts 6 months but can be up to 12 months if a company has 15 or more workers. 

Notice period 

The length of time an employee has been hired affects the notice period:

  • 1 week notice: Less than 1 year of service;
  • 2 weeks’ notice: From 1 to 3 years of service;
  • 3 weeks’ notice: From 3 to 5 years of service;
  • 4 weeks’ notice: 5 years or more years of service.

The employee is eligible for an extra week of notice if they are over 45 and have worked for the company for at least 2 years.

Severance period

Severance pay is calculated using the employee’s average hourly wage over their entire tenure, multiplied by the number of years of employment.

  • 4 weeks’ severance compensation: 1 year of service;
  • 6 weeks’ severance compensation: 2 years of service;
  • 7 weeks’ severance compensation: 3 years of service;
  • 8 weeks’ severance compensation: 4 years of service;
  • 10 weeks’ severance compensation: 5 years of service;
  • 11 weeks’ severance compensation: 6 years of service;
  • 13 weeks’ severance compensation: 7 years of service;
  • 14 weeks’ severance compensation: 8 years of service;
  • 16 weeks severance compensation: 9 years of service;
  • 12 weeks’ severance compensation: At least 10 years of service.

Working hours

The maximum number of hours an Australian employee can work in a week is 38, which works out to 7.6 hours (7 hours, 36 minutes) per day. Monday through Friday from 9 am to 5 pm, with a 30-minute to an hour-long meal break.

Leave and benefits

Public holidays

There are 15 officially recognized holidays in Australia:

  1. New Year’s Day
  2. Australia Day
  3. Good Friday
  4. Easter Monday
  5. Anzac Day
  6. Christmas Day
  7. Boxing Day

Sick leave

Employees are eligible for 10 days of paid time off per year, which can be used to care for an ill family member or yourself. 

Maternity leave & paternity leave

After 12 months of employment, mothers are eligible for 12 months of unpaid maternity leave. Some companies may offer maternity absence benefits. Furthermore, women can apply to a program the Federal Government runs that will compensate them for 18 weeks of maternity leave. 

Each father is eligible for 5 days of unpaid leave upon the birth or adoption of a child. Workers can also apply to the Federal Government’s program for extra time off.

Other leave

Bereavement leave

Employees who lose a close relative are entitled to up to 2 days of compensated mourning leave.

Parental leave

Maternity leave, paternity leave, and adoption leave are all types of parental absences. An employee must have worked for the company for at least 12 months before being considered for eligibility.

There is a 12-month limit on unpaid parental leave, with an additional 12-month extension available with employer approval.

What are the minimum vacation days?

Employees who work full-time are eligible for 4 weeks of paid leave annually, while those who work in shifts are granted 5 weeks.


Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*


Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Australia, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Australia?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

  • No paperwork: We will handle all the necessary paperwork for you.
  • Save on taxes: We help you handle your taxes.
  • No company set up: You can expand your business using our company entitles.
  • Online onboarding: We’re here to ensure your onboarding process is trouble-free.
  • No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
  • Increase your profit: We assist you in growing your business and maximizing your profits.
  • Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
  • Local support: We can assist you in understanding and complying with the relevant local laws.
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*Note: The provided information was accurate at the time of writing.

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