Australia

big city and park in Melbourne
Currency
AUD
Payroll Frequency
Weekly, Bi-Monthly, or Monthly
Employer Taxes
For Residents (0%-45%) and Non-residents (32%-45%)

Overview

Capital
Canberra
Currency
Australian Dollar (AUD)
Date format
dd/mm/yyyy

Contributions

Employer

Medicare – 1%
Superannuation (retirement pension benefit funds) – 10% (capped at 21,002.06 AUD per year)
Payroll Tax – 4.85%
Total Employee Cost – 15.85%

Employee

Employee Income Taxes:

Income Taxes Tax rates are based on earnings brackets, and different for residents vs. non-residents.

Residents‍
0%: AUD0 – AUD18,200
19%: AUD18,201 – AUD37,000
32.5%: AUD37,001 – AUD90,000
37%: AUD90,001 – AUD180,000
45%: AUD180,001 and above

Non-Residents
‍32.5%: AUD0 – AUD90,000
37%: AUD90,001 – AUD180,000
45%: AUD180,001 and above

Income Taxes

Minimum Wage

General

From 1 July 2022, the national minimum wage is $21.38 per hour or $812.60 per 38 hour week (before tax).

Casual employees covered by the national minimum wage also get at least a 25% casual loading.

Payroll

Payroll Cycle

Employees are paid weekly, bi-monthly, or monthly. There are no legal requirements to when an employee needs to be paid by.

13th Salary

There are no provisions in the law regarding 13th salaries

Working Hours

General

The standard working hours is 38 hours per week.

Overtime

Leave & Public Holidays

Paid Time Off

Full-time and part-time employees get 4 weeks of annual leave, based on their ordinary hours of work.

Employees are entitled to 10 days paid leave per year

Bereavement leave: 2 days

 

Public Holidays

Public holidays are different for each state in Australia, for details go to https://www.fairwork.gov.au/employment-conditions/public-holidays/2022-public-holidays

Sick Days

Maternity / Paternity Leave

Maternity Leave

Mothers are entitled to 12 months unpaid maternity leave after working for 12 months with the same employer. Some employers provide paid maternity leave.

Paternity Leave

Fathers are entitled to 5 days unpaid leave at the time of the birth or adoption of a child.

Parental Leave
Other Leave

Termination

Termination Process

Generally, an employer must not terminate an employee’s employment unless they have given the employee written notice of the last day of employment. An employer can either let the employee work through their notice period, or pay it out to them (also known as pay in lieu of notice).

When an employment relationship ends, employees should receive the following entitlements in their final pay:

any outstanding wages or other remuneration still owing
any pay in lieu of notice of termination
any accrued annual leave and long service leave entitlements
the balance of any time off instead of overtime that the employee has accrued but not yet taken
any redundancy pay or entitlements if the employees has been made redundant and is eligible.

Notice Period

An employer has to give the following minimum notice periods when dismissing an employee:

  • 1 year or less : 1 week notice
  • More than 1 year – 3 years : 2 weeks
  • More than 3 years – 5 years : 3 weeks
  • More than 5 years : 4 weeks
Severance Pay
Probation Period

VISA

General

Types of Work Permits for Australia

  • Employer Nomination Scheme (ENS) visa – allows skilled workers nominated by their employer to live and work in the country permanently.
  • Regional Sponsored Migration Scheme (RSMS) visa – allows skilled workers nominated by their employer in regional Australia to live and work in the country permanently.
  • Skilled independent visa – for invited workers and New Zealand citizens with skills Australia needs to live and work permanently anywhere in Australia
  • Skilled Nominated visa – lets nominated skilled workers live and work in Australia as permanent residents.
  • Temporary Skill Shortage visa – temporary visa that enables an employer to sponsor a suitable skilled worker when an Australian is not available
  • Skilled Regional (Provisional) visa – temporary visa for skilled workers who want to live and work in regional Australia.
  • Temporary Work (Short Stay Specialist) visa – temporary visa that lets you do short-term, highly-specialized work in the country.
  • Temporary Work (International Relations) visa – temporary visa to work in particular circumstances that improve Australia’s international relations

VAT

General

The standard VAT rate in Australia is a goods and services tax (GST) of 10%

Date of Updates
12/07/2022

Why AYP

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