Country Payroll Guide Australia

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Sydney-Australia

Key Facts

Capital
Canberra
Date format
dd/mm/yyyy
Currency
Australian Dollar (AUD)
VAT
the standard rate is 10%

Contributions

Employers

Medicare
Medicare - 1%
Superannuation
Superannuation - 10%
Payroll Tax
Payroll Tax - 4.85%
Total Employment Cost
Total Employment Cost - 15.85%

Employees

Medicare
Medicare - 1%
Superannuation
Superannuation - 10%
Payroll Tax
Payroll Tax - 4.85%
Total Employee Cost
Total Employee Cost - 15.85%

Minimum Wage

Minimum Wage
The minimum wage in Australia is 19.84 AUD per hour

Payroll

Payroll Cycle
Monthly

Income Tax

Employee Income Tax (1)
Less than 18,200 AUD - 0%
Employee Income Tax (2)
18,201 – 45,000 AUD - 19 cents for each $1 over $18,200
Employee Income Tax (3)
45,001 – 120,000 AUD - $5,092 plus 32.5 cents for each $1 over $45,000
Employee Income Tax (4)
120,001 – 180,000 AUD - $29,467 plus 37 cents for each $1 over $120,000
Employee Income Tax (5)
180,001 AUD and over - $51,667 plus 45 cents for each $1 over $180,000

Working Hours

General Working Hours

38 hours per week.

Overtime

Employers can request employees to work reasonable overtime. The employee can decline this if the work is unreasonable.

Leave

Paid Time Off

4 weeks of annual leave per year.

Public Holidays

7 National – 16 total which vary from region to region.

Sick Days

10 days for full-time employees.

Maternity Leave

Up to 12 months unpaid.

Paternity Leave

Up to 12 months unpaid.

Parental Leave

Up to 12 months unpaid.

Other Leave

Family and domestic violence leave, compassionate and bereavement leave, community service leave.

Termination

Termination Process

Examples of valid reasons for dismissal are: poor performance, misconduct, changes to operational requirements.

Notice Period

1 year or less = 1 week; 1-3 years = 2 weeks; 3-5 years = 3 weeks; over 5 years = 4 weeks notice.

Severance Pay

Four weeks to 16 weeks depending on years of service.

Probation Period

There is no law that stipulates that one has to have a probation period, it is up to the employer. They usually run from a few weeks to a few months.

Visa

Employment Visa
  • Employer Nomination Scheme (ENS) visa: Employers nominate an employee to live and work in Australia.
  • Temporary activity and specialist visas – Short stay work visa for specific types or highly specialised work.
  • Temporary Work Visas – Employees can work in the country for a specific amount of time (generally 1 year).
  • Permanent Work Visa – Employees can be in employment for an undefined amount of time.