HR & Payroll in Australia

Good to know

Local Currency: Australian dollar (AUD)

Minimum Salary: $915.90 per week (for a 38 hour week) or $24.10 per hour.

Salary Calculation: gross to net.

Legal Working Hours: 38 hours weekly for full-time employees paid.

Paid Leave: full-time and part-time workers get 4 weeks of annual leave for every 12 months worked.

About Australia

Australia is the smallest continent on Earth. It is also one of the largest countries, lying between the Pacific and Indian oceans in the Southern Hemisphere.

Australia’s economy is the 13th freest globally and ranks 4th in the Asia-Pacific region. It is an excellent place to invest for a variety of reasons, including its consistent economic growth, highly skilled workforce, strategic location and global ties. 

Fun fact: Australia is the only place in the world where Kangaroos exist in the wild. Australia has around 50 million kangaroos, with the number increasing every year.

Are you looking to settle in Australia? Do you need help with payroll or human resources management? Our Australian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.

Ready to Benefit from Australian HR & Payroll Experts?

The Australian Social Security System

The Australian social welfare system provides all permanent residents with coverage for sickness-maternity-disability, old age-survivors, unemployment, occupational injury and disease, long-term care and family benefits.

This plan is non-contributory. In fact, almost all of its funding comes from income tax (General Revenue). Employees are taxed on their gross income as well as on their benefits and social assistance.

There is no compulsory unemployment insurance plan.

Regarding accidents at work and occupational diseases, the employer must take out private insurance to ensure the continuation of his employees’ wages in the event of an accident.

Administrative Organization

In Australia, the primary government agency responsible for social security is the Department of Social Services (DSS). The DSS is responsible for the development and implementation of social policies and programs

The DSS operates through a number of different bodies and agencies, including:

Centrelink

Goverment agency responsible for the delivery of income support payments and services to eligible individuals and families.

Medicare

Publicly funded healthcare system responsible for providing access to essential healthcare services and subsidizing medical expenses.

National Disability Insurance Agency

Responsible for the management and delivery of the National Disability Insurance scheme (NDIS).

Australian Aged Care Quality Agency (AACQA)

Accreditation and monitoring of aged care services

Australian Institute of Family Studies (AIFS)

Agency responsible for conducting research and providing information and advice on family-related issues.

Australian Tax Office (ATO)

For tax purposes, ATO is the referring body. It’s the statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering salaries and wages, Pay as you go (PAYG) withholding, and superannuation.

Social Contributions in Australia

In Australia, employers are required to make contributions to various government-mandated programs on behalf of their employees. The main payroll contributions that employers are required to make in Australia include:

Superannuation Guarantee (SG) contributions

Employers are required to contribute a minimum of 11% of an employee’s salary or wages to a complying superannuation fund.

Medicare Levy

Employers are required to withhold and pay the Medicare Levy, which is a levy imposed on Australian taxpayers to help fund the public health system.

Workers' compensation insurance

Employers are required to take out workers’ compensation insurance to cover their employees in the event of a work-related injury or illness.

Payroll tax

Employers are required to pay a state-based payroll tax on their total Australian wages, which is calculated as a percentage of the total payroll.

Fringe Benefits Tax (FBT)

Employers may be liable to pay FBT on certain benefits provided to their employees, such as company cars or private health insurance.

Contributions as of 1 July 2023 – 30 June 2024

Risks By Employer (% of wage) By Employee (% of wage)
Superannuation guarantee   11 (1)
Medicare Levy 2% (2)
Workers compensation insurance There are 11 main workers’ compensation schemes, there is a scheme for each state and territory (3)

(1) An employer doesn’t have to pay the superannuation guarantee on employee earnings above this base limit, currently set at $62,270 per quarter for the 2023–24 financial year.

(2) If you have to pay the Medicare levy, you may have to pay the Medicare levy surcharge (MLS) of 1%, 1.25% or 1.5% if both:

(3) You can refer to the “Safe Work Australia” for more info.

Income Tax

Australia works on a pay-as-you-go tax system. Employers withhold employee taxes, then paid directly to the Australian Taxation Office (ATO).

Income tax in Australia differs depending on whether the employee is a resident of Australia or not.

Resident tax rates

Resident Tax Rates 2023-2024

Taxable Income Tax on this income
0 – $18,200 Nill
$18,201 – $45,000 19 cents for each $1 over $18,200
$45,001 – $120,000 $5,092 + 32,5 cents for each $1 over $45,000
$120,001 – $180,000 $29,467 $ + 37 cents for each $1 over $120,000
$180,001 and over $51,667 + 45 cents for each $1 over $180,000

Foreign resident tax rates

Foreign Tax Rates 2023-2024

Taxable Income Tax on this income
0 – $120,000 32.5 cents for each $1
$120,001 – $180,000 $39,000 + 37 cents for each $1 over $120,000
$180,001 and over $61,200 + 45 cents for each $1 over $180,000

The above rates do not include the Medicare levy of 2%. 

Collection

In 2018, the Australian Taxation Office (ATO) introduced Single Touch Payroll (STP), which is an initiative to reduce employers’ reporting burdens to government agencies.

It works by sending tax and super information from your STP enabled payroll software to the ATO as you run your payroll.

Your STP will send to the ATO a report which includes the information we need from you, such as:

  • Salaries and wages
  • Pay as you go (PAYG) withholding.
  • Superannuation.

Our HR & Payroll Experts are Ready to Help

Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Australia.

Our Payroll and HR services in Australia

HR & Payroll in Australia

HR & Payroll in Australia

Payroll in Australia

Good to know

Local Currency: Australian dollar (AUD)

Minimum Salary: $915.90 per week (for a 38 hour week) or $24.10 per hour.

Salary Calculation: gross to net

Legal Working Hours: 38 hours weekly for full-time employees paid

Paid Leave: full-time and part-time workers get 4 weeks of annual leave for every 12 months worked

Ready to Benefit from Australian HR & Payroll Experts?

About Australia

Australia is the smallest continent on Earth. It is also one of the largest countries, lying between the Pacific and Indian oceans in the Southern Hemisphere.

Australia’s economy is the 13th freest globally and ranks 4th in the Asia-Pacific region. It is an excellent place to invest for a variety of reasons, including its consistent economic growth, highly skilled workforce, strategic location and global ties. 

Fun fact: Australia is the only place in the world where Kangaroos exist in the wild. Australia has around 50 million kangaroos, with the number increasing every year.

Are you looking to settle in Australia? Do you need help with payroll or human resources management? Our Australian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.

The Australian Social Security System

The Australian social welfare system provides all permanent residents with coverage for sickness-maternity-disability, old age-survivors, unemployment, occupational injury and disease, long-term care and family benefits.

This plan is non-contributory. In fact, almost all of its funding comes from income tax (General Revenue). Employees are taxed on their gross income as well as on their benefits and social assistance.

There is no compulsory unemployment insurance plan.

Regarding accidents at work and occupational diseases, the employer must take out private insurance to ensure the continuation of his employees’ wages in the event of an accident.

Administrative Organization

In Australia, the primary government agency responsible for social security is the Department of Social Services (DSS). The DSS is responsible for the development and implementation of social policies and programs

The DSS operates through a number of different bodies and agencies, including:

Centrelink

Goverment agency responsible for the delivery of income support payments and services to eligible individuals and families.

Medicare

Publicly funded healthcare system responsible for providing access to essential healthcare services and subsidizing medical expenses.

National Disability Insurance Agency

Responsible for the management and delivery of the National Disability Insurance scheme (NDIS).

Australian Aged Care Quality Agency (AACQA)

Accreditation and monitoring of aged care services.

Australian Institute of Family Studies (AIFS)

Agency responsible for conducting research and providing information and advice on family-related issues.

Australian Tax Office (ATO)

For tax purposes, ATO is the referring body. It’s the statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering salaries and wages, Pay as you go (PAYG) withholding, and superannuation.

Social Contributions in Australia

In Australia, employers are required to make contributions to various government-mandated programs on behalf of their employees. The main payroll contributions that employers are required to make in Australia include:

Superannuation Guarantee (SG) contributions

Employers are required to contribute a minimum of 11% of an employee’s salary or wages to a complying superannuation fund.

Medicare Levy

Employers are required to withhold and pay the Medicare Levy, which is a levy imposed on Australian taxpayers to help fund the public health system.

Workers' compensation insurance

Employers are required to take out workers’ compensation insurance to cover their employees in the event of a work-related injury or illness.

Payroll tax

Employers are required to pay a state-based payroll tax on their total Australian wages, which is calculated as a percentage of the total payroll.

Fringe Benefits Tax (FBT)

Employers may be liable to pay FBT on certain benefits provided to their employees, such as company cars or private health insurance.

Contributions as of 1 July 2023 – 30 June 2024

RisksBy Employer (% of wage)By Employee (% of wage)
Superannuation guarantee  11(1)
Medicare Levy2% (2)
Workers compensation insuranceThere are 11 main workers’ compensation schemes, there is a scheme for each state and territory (3)

(1) An employer doesn’t have to pay the superannuation guarantee on employee earnings above this base limit, currently set at $62,270 per quarter for the 2023–24 financial year.

(2) If you have to pay the Medicare levy, you may have to pay the Medicare levy surcharge (MLS) of 1%, 1.25% or 1.5% if both:

(3) You can refer to the “Safe Work Australia” for more info.

Individual Income Tax

Australia works on a pay-as-you-go tax system. Employers withhold employee taxes, then paid directly to the Australian Taxation Office (ATO).

Income tax in Australia differs depending on whether the employee is a resident of Australia or not.

Resident tax rates

Resident Tax Rates 2023-2024

Taxable Income Tax on this income
0 – $18,200 Nill
$18,201 – $45,000 19 cents for each $1 over $18,200
$45,001 – $120,000 $5,092 + 32,5 cents for each $1 over $45,000
$120,001 – $180,000 $29,467 $ + 37 cents for each $1 over
$180,001 and over $51,667 + 45 cents for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Foreign resident Tax Rates

Foreign Tax Rates 2023-2024

Taxable Income Tax on this income
0 – $120,000 32.5 cents for each $1
$120,001 – $180,000 $39,000 + 37 cents for each $1 over $120,000
$180,001 and over $61,200 + 45 cents for each $1 over $180,000

Collection

In 2018, the Australian Taxation Office (ATO) introduced Single Touch Payroll (STP), which is an initiative to reduce employers’ reporting burdens to government agencies.

It works by sending tax and super information from your STP enabled payroll software to the ATO as you run your payroll.

Your STP will send to the ATO a report which includes the information we need from you, such as:

    • Salaries and wages
    • Pay as you go (PAYG) withholding.
    • Superannuation.

Our HR & Payroll Experts are Ready to Help

Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Australia.

Our Payroll and HR services in Australia

Good to know

Local Currency: Australian dollar (AUD)

Minimum Salary: $915.90 per week (for a 38 hour week) or $24.10 per hour.

Salary Calculation: gross to net

Legal Working Hours: 38 hours weekly for full-time employees paid

Paid Leave: full-time and part-time workers get 4 weeks of annual leave for every 12 months worked

Ready to Benefit from Australian HR & Payroll Experts?

About Australia

Australia is the smallest continent on Earth. It is also one of the largest countries, lying between the Pacific and Indian oceans in the Southern Hemisphere.

Australia’s economy is the 13th freest globally and ranks 4th in the Asia-Pacific region. It is an excellent place to invest for a variety of reasons, including its consistent economic growth, highly skilled workforce, strategic location and global ties. 

Fun fact: Australia is the only place in the world where Kangaroos exist in the wild. Australia has around 50 million kangaroos, with the number increasing every year.

Are you looking to settle in Australia? Do you need help with payroll or human resources management? Our Australian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.

The Australian Social Security System

The Australian social welfare system provides all permanent residents with coverage for sickness-maternity-disability, old age-survivors, unemployment, occupational injury and disease, long-term care and family benefits.

This plan is non-contributory. In fact, almost all of its funding comes from income tax (General Revenue). Employees are taxed on their gross income as well as on their benefits and social assistance.

There is no compulsory unemployment insurance plan.

Regarding accidents at work and occupational diseases, the employer must take out private insurance to ensure the continuation of his employees’ wages in the event of an accident.

Administrative Organization

In Australia, the primary government agency responsible for social security is the Department of Social Services (DSS). The DSS is responsible for the development and implementation of social policies and programs

The DSS operates through a number of different bodies and agencies, including:

Centrelink

Goverment agency responsible for the delivery of income support payments and services to eligible individuals and families.

Medicare

Publicly funded healthcare system responsible for providing access to essential healthcare services and subsidizing medical expenses.

National Disability Insurance Agency

Responsible for the management and delivery of the National Disability Insurance scheme (NDIS).

Australian Aged Care Quality Agency (AACQA)

Accreditation and monitoring of aged care services.

Australian Institute of Family Studies (AIFS)

Agency responsible for conducting research and providing information and advice on family-related issues.

Australian Tax Office (ATO)

For tax purposes, ATO is the referring body. It’s the statutory agency and the principal revenue collection body for the Australian Government. The ATO has responsibility for administering salaries and wages, Pay as you go (PAYG) withholding, and superannuation.

Social contributions in Australia

In Australia, employers are required to make contributions to various government-mandated programs on behalf of their employees. The main payroll contributions that employers are required to make in Australia include:

Superannuation Guarantee (SG) contributions

Employers are required to contribute a minimum of 11% of an employee’s salary or wages to a complying superannuation fund.

Medicare Levy

Employers are required to withhold and pay the Medicare Levy, which is a levy imposed on Australian taxpayers to help fund the public health system.

Workers' compensation insurance

Employers are required to take out workers’ compensation insurance to cover their employees in the event of a work-related injury or illness.

Payroll tax

Employers are required to pay a state-based payroll tax on their total Australian wages, which is calculated as a percentage of the total payroll.

Fringe Benefits Tax (FBT)

Employers may be liable to pay FBT on certain benefits provided to their employees, such as company cars or private health insurance.

Contributions as of 1 July 2023 – 30 June 2024

RisksBy Employer (% of wage)By Employee (% of wage)
Superannuation guarantee  11(1)
Medicare Levy2% (2)
Workers compensation insuranceThere are 11 main workers’ compensation schemes, there is a scheme for each state and territory (3)

(1) An employer doesn’t have to pay the superannuation guarantee on employee earnings above this base limit, currently set at $62,270 per quarter for the 2023–24 financial year.

(2) If you have to pay the Medicare levy, you may have to pay the Medicare levy surcharge (MLS) of 1%, 1.25% or 1.5% if both:

(3) You can refer to the “Safe Work Australia” for more info.

Individual Income Tax

Australia works on a pay-as-you-go tax system. Employers withhold employee taxes, then paid directly to the Australian Taxation Office (ATO).

Income tax in Australia differs depending on whether the employee is a resident of Australia or not.

Resident Tax Rates

Resident Tax Rates 2023-2024

Taxable Income Tax on this income
0 – $18,200 Nill
$18,201 – $45,000 19 cents for each $1 over $18,200
$45,001 – $120,000 $5,092 + 32,5 cents for each $1 over $45,000
$120,001 – $180,000 $29,467 $ + 37 cents for each $1 over
$180,001 and over $51,667 + 45 cents for each $1 over $180,000

The above rates do not include the Medicare levy of 2%.

Foreign resident Tax Rates

Non-residents’ employment income will be subject to taxation at either the flat rate of 15% or the progressive resident tax rates (refer to the table above), whichever results in a higher tax amount.

Foreign Tax Rates 2023-2024

Taxable Income Tax on this income
0 – $120,000 32.5 cents for each $1
$120,001 – $180,000 $39,000 + 37 cents for each $1 over $120,000
$180,001 and over $61,200 + 45 cents for each $1 over $180,000

Collection

In 2018, the Australian Taxation Office (ATO) introduced Single Touch Payroll (STP), which is an initiative to reduce employers’ reporting burdens to government agencies.

It works by sending tax and super information from your STP enabled payroll software to the ATO as you run your payroll.

Your STP will send to the ATO a report which includes the information we need from you, such as:

  • Salaries and wages
  • Pay as you go (PAYG) withholding.
  • Superannuation.

Our HR & Payroll Experts are Ready to Help

Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Australia.

Our Payroll and HR services in Australia

Sources