What are the statutory contributions for employees and employers in Australia?
Employee Income Tax
The Australian tax system applies a progressive tax structure. For the tax year 2021-2022, the tax rates for residents are as follows:
Taxable income up to AUD 18,200: 0%
Taxable income between AUD 18,201 and AUD 45,000: 19%
Taxable income between AUD 45,001 and AUD 120,000: 32.5%
Taxable income between AUD 120,001 and AUD 180,000: 37%
Taxable income above AUD 180,000: 45%
Employer Payroll Contributions
Employers are required to contribute 10% of their employees’ earnings to their superannuation accounts.
Employee Payroll Contributions
Employees are required to contribute 9.5% of their earnings to their superannuation accounts.
What is the minimum wage in Australia?
According to the Australian Bureau of Statistics, Australia’s national law sets a minimum hourly wage of AUD 21.38 for part time as well as full-time workers.
What is the payroll cycle in Australia?
The standard payroll cycle in Australia is weekly, fortnightly (every two weeks), or monthly, depending on the terms agreed by the employee and employer in their contract.
How long is the working hours in Australia?
Full time employees customarily work 38 hours per week. If employees are required to work outside of these hours, they are entitled to overtime pay.
How many leaves are employees entitled to?
- Standard paid time off — full-time employees in Australia are entitled to at least 20 days of paid annual leave per year, which accrues gradually over time.
- Compulsory annual public holidays — there are 13 national public holidays in Australia, which may vary by state or territory.
- Minimum paid sick leave — full-time employees in Australia are entitled to 10 days of paid sick leave per year, which accumulates progressively.
What are the public holidays in Australia?
Here is the list of public holidays in Australia for 2023:
| Date | Name |
| 1 Jan | New Year’s Day |
| 2 Jan | New Year’s Holiday |
| 26 Jan | Australia Day |
| 7 Apr | Good Friday |
| 10 Apr | Easter Monday |
| 25 Apr | ANZAC Day |
| 25 Dec | Christmas Day |
| 26 Dec | Boxing Day |
How long is the maternity and paternity leave in Australia?
- Statutory maternity leave — eligible female employees in Australia are entitled to up to 12 months of unpaid maternity leave, and may be eligible for government-funded paid parental leave.
- Statutory paternity leave — eligible male employees in Australia are entitled to two weeks of paid paternity leave.
- Statutory parental leave — eligible employees in Australia may be entitled to unpaid parental leave for up to 24 months to care for their child.
What rights do employees have upon leaving employment due to certain conditions?
Employers can terminate employees for valid reasons such as poor performance or misconduct, but this must be done through a fair evaluation process. When an employee’s service with a company is terminated for certain reasons, they are entitled to certain rights and benefits, including:
- Notice period — the minimum notice period for termination varies based on the length of service, ranging from one to five weeks.
- Severance pay — there is no mandated severance pay in Australia.
- Probation period — employees are entitled to six months of probation period at the maximum.
What is the type of visa for employees in Australia?
In order to be granted an employment visa in Australia, the applicant must have a valid job offer from an Australian employer and meet the skill, health, and character requirements for their position. In addition, the company must also have an approval from the Australian government to be a sponsor.
Australia offers a variety of employment visas, including the Regional Sponsored Migration Scheme (RSMS), the Employer Nomination Scheme (ENS), and the Temporary Skill Shortage (TSS) visa.
Standard VAT Rate
The standard VAT (known as Goods and Services Tax or GST) rate in Australia is 10%.