Australia at a glance
Taxes in Australia
Employer Contributions
Total employer tax: 14.24%–19.35%
| Contribution Type | Rate |
|---|---|
| Superannuation (mandatory pension) | 12% |
| Payroll tax (territory-dependent) | 0%–6.85% |
Total employer tax: 14.24%–19.35%
| Contribution Type | Rate |
|---|---|
| Superannuation (mandatory pension) | 12% |
| Payroll tax (territory-dependent) | 0%–6.85% |
| Contribution Type | Rate |
|---|---|
| Medicare levy | 2% |
| Income tax | Progressive (see below) |
| Taxable Income (AUD) | Tax |
|---|---|
| $0 – $18,200 | $0 |
| $18,201 – $45,000 | 16c per $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| Over $190,000 | $51,638 plus 45c for each $1 over $190,000 |
Employer of Record in Australia
How Remote& EOR Works
Remote& acts as the legal employer of your Australian workers — managing superannuation, payroll, tax filings, and employment contracts in accordance with the Fair Work Act and National Employment Standards (NES), while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Runs payroll, files PAYG/superannuation, administers statutory benefits, ensures Fair Work compliance |
| Employee | Works for your company under a locally compliant Australian contract |
Ask Remi:
"Hire a senior product manager in Sydney — AU$150,000/year, starting next month" Remi handles everything: contract, superannuation enrollment, tax registration, and payroll under the NES.
Benefits in Australia
- Superannuation: Employers must contribute 12% of gross salary to a qualifying super fund of the employee's choice
- Medicare: Government-funded universal healthcare; employees pay 2% Medicare levy
- Workers' compensation insurance: Mandatory in all states and territories
- Personal/carer's leave: 10 days per year
- Flexible work: Employees have the right to request flexible working arrangements
- Private health insurance
- Additional superannuation contributions
- Employee Assistance Programme (EAP)
- Life and disability insurance
- Additional annual leave
- Childcare allowance
- Career development budget
- Commuter allowance
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 4 weeks + public holidays |
| Personal/Carer's Leave (Sick Leave) | 10 days per year |
| Maternity Leave | 52 weeks (90 days paid at national minimum wage via government Parental Leave Pay) |
| Paternity Leave | 2 weeks paid (via government Dad and Partner Pay) |
| Parental Leave | Up to 22 weeks shared |
Employment conditions
Probation
No statutory maximum probation period exists. In practice, 3 or 6 months is typical. Employees who have completed at least 6 months' service (12 months for businesses with fewer than 15 employees) are protected from unfair dismissal.
Intellectual Property
IP created by employees is not automatically owned by the employer. Employment contracts should include explicit IP assignment clauses where needed.
Employee Rights & Protections
Australian workers are entitled to: written employment terms, flexible working rights, equal opportunity protection, protection from adverse actions, redundancy payment rights, union membership, and Right to Disconnect.
Payments
End of employment in Australia
Termination must be based on valid reason — capacity, conduct, performance, or redundancy. Employees protected under the unfair dismissal provisions (6 or 12 months' service threshold) may bring claims to the Fair Work Commission if dismissed harshly, unjustly, or unreasonably.
Employees with at least one year of continuous service are entitled to redundancy pay based on length of service, in addition to notice period payment.
Frequently asked questions
Four paths: run payroll from HQ for short-term arrangements; engage genuine independent contractors; establish an Australian entity for direct employment; or use Remote& as Employer of Record — compliant with the Fair Work Act without you needing to register locally.