Discover how an Employer of Record (EOR) in Australia, backed by localized HR support, enables businesses to hire quickly and efficiently. With Employer of Record Australia expertise in compliance, onboarding, and local workplace requirements, it will ensure your business expansion is smooth and uninterrupted.
Quick Reference for EOR Australia Services:
Why Choose EOR Australia in 2026: Australia's GDP of $1.728 trillion and position as the Asia-Pacific's most stable economy make it ideal for business expansion. An Employer of Record Australia eliminates setup complexities while ensuring complete regulatory compliance from day one.
An Employer of Record (EOR) Australia is a third-party service that legally employs your workers in Australia on your behalf. While you maintain day-to-day management control, the EOR handles all legal employment responsibilities, payroll processing, benefits administration, and compliance with Australian employment laws.
The EOR model has become increasingly popular in Australia as businesses recognize the country's potential as the Asia-Pacific's largest English-speaking market. With Australia's government actively promoting innovation through initiatives like the National Reconstruction Fund, Industry Growth Program, and extensive digital economy support, international companies are seeking efficient ways to establish presence in this strategic market without the complexities of local entity setup.
The relationship between your company and the EOR creates a seamless employment experience where you retain complete operational control while transferring all legal and compliance obligations to local experts who understand Australia's comprehensive regulatory environment.
Australia stands as the Asia-Pacific's largest English-speaking economy and a strategic gateway to regional markets, offering companies access to a highly skilled workforce, world-class infrastructure, and one of the world's most stable political and economic environments. The country serves as the regional headquarters for numerous multinational corporations and emerging technology companies.
Australia’s digital landscape is anchored by the National AI Plan 2025 and the 2023-2030 Cyber Security Strategy, supported by the AUD 15 billion National Reconstruction Fund. This framework targets sovereign artificial intelligence, quantum computing, and advanced cyber resilience to position the nation as a secure innovation hub for the Asia-Pacific.
Simultaneously, the country is cementing its status as a renewable energy and critical minerals superpower through the AUD 22.7 billion "Future Made in Australia" agenda. This initiative drives significant capital into clean technology manufacturing, green hydrogen, and downstream mineral processing, creating sustainable supply chains that are actively attracting global investment.
Australia's position as a trusted partner in the Indo-Pacific region, combined with its natural resource abundance and technological capabilities, makes it the preferred choice for companies seeking stable, long-term growth in the Asia-Pacific region.
Australia's employment landscape has undergone its most significant transformation in a decade with the full implementation of the "Closing Loopholes" reforms in 2025. The regulatory environment is governed by the Fair Work Act 2009, Superannuation Guarantee (Administration) Act, and various Fair Work Commission guidelines, creating a system that balances high worker protection with business accountability.
To remain compliant, businesses must navigate a complex framework that now includes the "Right to Disconnect", criminalization of wage theft, and the "Same Job, Same Pay" laws which strictly regulate labor hire and EOR arrangements.
The compliance burden extends to financial and immigration pillars:
Quality EOR service providers must demonstrate sophisticated capabilities in these areas, ensuring your workforce is managed under the correct Modern Awards and classification levels to avoid the severe penalties associated with the new wage theft laws.
Australia operates a comprehensive minimum wage system supplemented by industry-specific Modern Awards that set detailed terms and conditions for different sectors and roles.
Modern Awards are reviewed annually by the Fair Work Commission, with rates typically adjusting on July 1st. These rates represent base pay only; employers must also account for the 12% Superannuation Guarantee and applicable penalty rates for overtime, weekends, or shift work.
Australia’s Fair Work Act sets strict caps on working hours while allowing for flexibility. In 2025, this framework includes the fully operational "Right to Disconnect" laws, which grant employees the legal right to refuse work-related contact outside of their defined hours.
Right to Disconnect: As of August 2025, employees across all business sizes (including small businesses) have a statutory right to refuse to monitor, read, or respond to work communications outside of paid hours unless that refusal is "unreasonable."
The concept of "reasonable additional hours" considers factors including nature of work, employee's role and level of responsibility, personal circumstances, and whether additional payment is made.
Australian employees enjoy comprehensive leave benefits that support work-life balance while maintaining productivity. For detailed information on Australia's leave policies, see our comprehensive guide to leave policy in Australia.
In 2025, the most significant change is the expansion of the Government Paid Parental Leave scheme and the introduction of superannuation payments on that leave.
Australia provides 10 national public holidays with additional state-based holidays, creating 11-13 total public holidays depending on location. Long service leave is a unique Australian benefit providing extended paid leave after long-term service.
The choice between establishing a local entity or partnering with an Employer of Record in Australia represents a strategic decision that impacts timeline, regulatory compliance, and operational flexibility. Australia's sophisticated business environment offers advantages for both approaches, but each serves different business needs.
Traditional entity setup in Australia requires 8-12 weeks and significant investment due to comprehensive regulatory requirements including Australian Securities and Investments Commission (ASIC) registration, tax registration with the Australian Taxation Office (ATO), and various industry-specific licenses.
EOR providers offer immediate market entry with comprehensive compliance management, making them ideal for companies testing the Australian market or requiring rapid talent acquisition.
EOR providers offer immediate market entry with comprehensive compliance management, making them ideal for companies testing the Australian market or requiring rapid talent acquisition.
The EOR implementation process in Australia leverages the country's efficient regulatory environment and digital government services to deliver rapid, compliant market entry with comprehensive support.
Australia's transparent business environment and mature EOR market enable rapid provider evaluation and setup, with most arrangements completed within hours.
Critical evaluation criteria include Fair Work Act compliance history, superannuation fund management, and ATO reporting accuracy. Australia's regulatory transparency makes provider verification straightforward through public databases.
Australia's Modern Award system is strictly enforced. In 2025, EOR contracts must also navigate the "Right to Disconnect" laws and the "Closing Loopholes" reforms regarding casual and fixed-term employment.
Employment contracts can no longer contain Pay Secrecy clauses (banned under the Fair Work Act). Additionally, strict limits now apply to Fixed-Term Contracts (maximum 2 years, max 1 renewal). EOR providers must ensure your contracts do not inadvertently trigger permanent employment obligations through non-compliant renewals.
Australia's integrated government systems enable efficient employee registration and benefit enrollment through connected digital platforms.
The onboarding process includes Tax File Number applications, superannuation fund enrollment, work visa processing for international employees, and comprehensive insurance setup through Australia's integrated systems.
Australia's sophisticated regulatory environment requires proactive compliance management and transparent reporting for ongoing employment administration.
Professional EOR providers leverage Australia's Single Touch Payroll (STP) system, automated superannuation payments, and integrated government reporting to ensure seamless compliance and real-time visibility.
Australia's payroll system is highly digitized, relying on Single Touch Payroll (STP) Phase 2 to report salaries, taxes, and superannuation to the Australian Taxation Office (ATO) in real-time. International businesses must ensure their payroll software is STP-compliant to avoid penalties.
Australia employs a progressive tax system. As of the 2025 financial year, the "Stage 3" tax reforms have flattened the brackets, reducing the 32.5% rate to 30% and lifting the top tax threshold to $190,000.
Additional levies may apply including Medicare Levy Surcharge for high-income earners without private health insurance and Temporary Budget Repair Levy for very high earners.
Australia's superannuation system requires mandatory employer contributions to approved funds. In 2026, the rate has stabilized at 12%, and the "Maximum Contribution Base" has been adjusted to prevent employees from inadvertently exceeding their tax-concessional limits.
The Superannuation Guarantee rate increases gradually to 12% by July 2025, with contributions required for all employees earning more than AUD 450 per month.
Australia's Single Touch Payroll (STP) Phase 2 is now the standard. While superannuation payments are currently legally required quarterly, most leading EORs (and the upcoming "Payday Super" laws) are moving to real-time payment models.
Australia's advanced payroll systems integrate with government databases, enabling automatic tax calculations, real-time compliance monitoring, and simplified reporting through digital platforms.
Australia's comprehensive benefits framework combines strong statutory protections with competitive market practices, creating attractive employment packages that support work-life balance and career development.
The country’s workplace culture emphasizes egalitarianism, direct communication, and work-life balance. The concept of "mateship" values collaboration and mutual support, while "fair dinkum" represents honesty and authenticity in business relationships. Understanding these cultural values significantly enhances workplace effectiveness.
Australia's competitive talent market drives employers to offer comprehensive benefits packages that exceed statutory minimums. In 2026, the focus has shifted heavily toward tax-effective salary packaging (especially for EVs) and hybrid work stipends.
Private health insurance is highly valued due to Medicare waiting periods and private hospital access. Car allowances or company vehicles are common given Australia's car-dependent cities and suburban lifestyle.
Australia's skilled migration program is designed to attract global talent while protecting local employment opportunities. The Department of Home Affairs maintains comprehensive visa pathways for temporary and permanent skilled workers. For comprehensive visa and work permit support, explore our visa services.
Australia's SkillSelect system and points-based migration enable competitive selection of skilled workers based on qualifications, experience, and labor market needs.
Australia’s visa system underwent a major overhaul in late 2024. The new Skills in Demand (SID) visa is now the primary vehicle for corporate talent, offering greater mobility and a clearer pathway to permanent residency.
Australia's digital visa system enables efficient processing with clear timelines and transparent requirements through the ImmiAccount portal.
The country’s digital visa system is now streamlined under the Skills in Demand framework. Processing times are heavily dependent on the "Tier" of the application, with specialist roles often approved in under a week.
Employer of Record Advantage: As an established local entity, an EOR often holds "Accredited Sponsor" status. This gives your nominated employees "priority processing," moving them to the front of the queue regardless of their visa tier.
Australia's fee structure is transparent but subject to annual indexation (typically on July 1st). The costs below reflect the 2025/26 financial year pricing for the new Skills in Demand framework.
The Skilling Australians Fund (SAF) Levy is a tax that must be paid by the employer and cannot be passed on to the employee. For a standard 4-year visa, this adds $4,800 – $7,200 to the upfront cost depending on business turnover.
Australia's termination framework is strictly regulated by the Fair Work Act. In 2025, employers must also comply with the "Right to Disconnect" provisions even during the notice period, ensuring they do not harass employees after hours during their exit.
Notice periods are determined by the employee's continuous service. An additional 1 week of notice is mandatory for employees over 45 years old who have completed at least 2 years of service.
*The extra week for employees over 45 applies only if they have completed at least 2 years of continuous service.
Redundancy pay is mandatory under the National Employment Standards (NES) when a role is no longer required.
Critical 2025 Update: The "High Income Threshold" used to cap certain benefits has increased to $183,100.
Small Business Exemption: generally, businesses with fewer than 15 employees are exempt from paying redundancy under the NES, though some specific Modern Awards may still require it.
Access to unfair dismissal claims is capped by the High Income Threshold. Employees earning above this amount (who are not covered by a Modern Award) generally cannot claim unfair dismissal, though they still have protections under "General Protections" (discrimination/whistleblowing) laws.
Australia's mature EOR provider market features both established international platforms and specialized local providers competing to serve the country's diverse business ecosystem across major cities and regional centers.
The sophistication of Australia's regulatory environment and competitive talent market demands EOR providers with deep local expertise, advanced technology platforms, and comprehensive advisory services.
AYP Group leads Australia's EOR market through guaranteed compliance, transparent pricing, and comprehensive advisory support tailored to Australia's complex regulatory environment. With extensive local expertise across all Australian states and territories, AYP Group provides unmatched peace of mind for companies establishing Australian operations. Learn more about our transparent pricing structure.
AYP Group's Australia operations combine deep understanding of Modern Awards, superannuation requirements, and visa complexities with advanced technology platforms that leverage Australia's digital government infrastructure.
Remote offers comprehensive EOR services in Australia through its global platform, providing standardized processes optimized for Australia's Single Touch Payroll system. Remote's strength lies in technology integration and multi-currency payroll capabilities suited to Australia's international business environment.
Deel provides rapid deployment EOR services emphasizing speed and technology integration for Australia's dynamic startup ecosystem. Deel's platform offers automated Australian tax calculations and streamlined visa support essential for growing technology companies.
Oyster HR delivers specialized EOR services with deep understanding of Australia's workplace culture and regional expansion strategies. Oyster provides comprehensive Modern Award compliance and cultural integration guidance for international teams.
Globalization Partners offers enterprise-grade EOR services focused on large-scale deployments and complex organizational structures suitable for multinational corporations establishing regional headquarters across Australia's major business centers.
Australia's transparent regulatory environment enables thorough EOR provider evaluation through publicly available compliance records and Fair Work Commission databases.
Regulatory compliance assessment should include Fair Work Act penalty records, superannuation compliance history, and ATO reporting accuracy. Top providers maintain perfect compliance records and provide real-time compliance reporting through integrated government systems.
Modern Award expertise becomes critical given Australia's complex award system, requiring providers with deep understanding of industry-specific terms, penalty rates, and allowances across different sectors and role classifications.
Technology platform evaluation involves assessing Single Touch Payroll integration, superannuation fund connectivity, and automated government reporting capabilities that leverage Australia's advanced digital infrastructure.
Australia's comprehensive regulatory framework and competitive talent market require careful planning and cultural sensitivity for successful EOR implementation and ongoing operations.
Define hiring requirements clearly, including Modern Award classifications, salary benchmarking, and visa requirements. Australia's competitive market demands comprehensive preparation and attractive value propositions for talent attraction.
Research EOR providers thoroughly, focusing on compliance history, Modern Award expertise, and superannuation fund management. Australia's transparent business environment enables comprehensive due diligence through public records and regulatory databases.
Australia's egalitarian workplace culture values direct communication, work-life balance, and collaborative decision-making. Understanding concepts like "mateship," "fair dinkum," and the importance of work-life balance enhances workplace effectiveness.
Provide cultural orientation covering Australian business etiquette, public holiday observances, and social customs. Offer flexible benefits accommodating Australia's outdoor lifestyle and family-oriented culture.
Monitor payroll accuracy and compliance through regular EOR provider reviews, leveraging Australia's Single Touch Payroll system for real-time verification. Track key performance indicators including employee satisfaction, retention rates, and Modern Award compliance.
Plan for scalability as Australian operations grow, considering transitions to local entity establishment when business scale justifies comprehensive infrastructure investment.
AYP Group leverages Australia's sophisticated business environment to deliver superior EOR services through guaranteed compliance, transparent pricing, and comprehensive advisory support tailored to the country's unique opportunities and challenges.
AYP Group leverages Australia's sophisticated business environment to deliver superior EOR services through guaranteed compliance, transparent pricing, and comprehensive advisory support tailored to the country's unique opportunities and challenges.
AYP Group distinguishes itself from global generalists through our Direct Entity Model. Unlike providers who farm out services to third parties, we own our legal entities in Australia, ensuring you have a single line of accountability, faster onboarding, and zero "middleman" markups
AYP Group's Australia operations deliver complete employment lifecycle management through advanced technology platforms and expert local advisory services.
Australia represents the Asia-Pacific's most stable and sophisticated business environment, combining regulatory excellence with strategic market access. Companies that establish Australian presence effectively gain competitive advantages throughout the region while accessing one of the world's highest-quality talent pools.
Australia offers unparalleled access to Asia-Pacific markets through its strategic location, advanced infrastructure, and business-friendly regulatory environment. Success requires navigating the competitive talent market while leveraging Australia's unique advantages and comprehensive worker protections.
Free Consultation: Discuss hiring strategies with our Australia experts who understand both regulatory requirements and market dynamics
Comprehensive Market Analysis: Receive detailed salary benchmarking and Modern Award classification for your specific requirements
Visa Strategy Assessment: Understand optimal visa pathways and application strategies for your international team
Custom Implementation Plan: Get tailored setup timelines aligned with your business objectives and growth strategy
Our Australia team combines regulatory expertise with market intelligence, ensuring your expansion succeeds from day one while positioning for long-term growth throughout the Asia-Pacific region.
"AYP Group enabled our rapid Australia market entry through their comprehensive EOR platform and deep local expertise. Their transparent pricing and guaranteed compliance gave us confidence while their Modern Award knowledge helped us compete effectively for top talent in Australia's demanding market."
— SaaS Company CEO, expanding from Silicon Valley to Sydney
Australia's strategic advantages and sophisticated business environment create exceptional opportunities for companies ready to establish Asia-Pacific operations. AYP Group's proven EOR platform eliminates complexity while maximizing your competitive positioning.
Ready to unlock Australia's potential? Contact AYP Group today through our global office locations and discover how our comprehensive EOR services can accelerate your success in the Asia-Pacific's premier English-speaking market.
AYP Group has been enabling successful Asia-Pacific expansion for over a decade. Our Australia EOR services combine regulatory excellence with market intelligence, ensuring rapid market entry with long-term competitive positioning.
Legal Disclaimer: This guide provides general information about Australian employment regulations and EOR services. Specific legal advice should be obtained from qualified professionals. Employment laws and regulations are subject to change, and this information should not be considered as legal counsel. AYP Group maintains current regulatory knowledge and provides updates to clients as part of comprehensive EOR services.
An Employer of Record (EOR) in Australia takes on the legal responsibilities for employees, allowing your business to hire talent without needing to establish a legal entity in the country.
The cost of hiring through EOR services in Australia typically ranges from $350 to $800 per employee per month, depending on the services provided.
Using an Employer of Record (EOR) in Australia simplifies market entry and expansion with our specialized local Australia support, enabling you to focus on your core operations while we handle HR management and compliance.
Several EOR service providers operate in Australia, including AYP. AYP offers comprehensive EOR solutions to help you hire, manage, and pay employees while ensuring full compliance, with no hidden costs for complete peace of mind.
AYP’s onboarding process for employees in Australia includes:
AYP Employer of Record (EOR) in Australia has local support that ensure the employment practises align with the local laws, as such, the local EOR employees will have complete peace of mind to avoid any legal risks and penalties.
Also, our local HR support can provide a faster and seamless response for your local employees to have a better employee experience.
Still have more questions? Contact us today
