One of the main reasons you’d like to partner with an Australian PEO is the low-risk environment for businesses to function.
In 2017, Australia also introduced a new foreign policy that has strived to bolster the country’s economic and security conditions and foreign relations. These moves have allowed Australia to consistently rank at 14 in the ease of doing business index. Besides, Australia has low corporate tax rates of 20%-30%.
Australia’s stable political and social conditions have led the country to nurture a GDP of $1.5 trillion. The country has consistently maintained a growth rate of 3.3% year after year. Moreover, the country ranks 5th for average disposable income per household; Australians have generous spending habits. Businesses are usually eager to tap into this behavior to increase their revenue.
Overall, it is extremely practical and logical to establish your footprint in Australia.
Although the federal government has made it seamless to start and grow a business, the latter has a few challenges. You need to establish a local entity or a subsidiary in Australia to hire and expand your business.
Some of the other challenges include compliance, labor laws, payrolling, etc. For instance, employment contracts in Australia must contain a whistleblower policy. Did you know that?
It is to navigate through these nuances, businesses like yours should partner with a PEO in Australia.
Why Use an Australia PEO
Multiplier’s Australia PEO can help you make inroads into the country’s super-friendly business environment. A Professional Employer Organization takes care of your HR operations – payrolling, compliance, employment contracts, benefits – in the country you choose to expand.
Using our Employer of Record in Australia, you can employ local talent without an entity. Your business becomes safe from employment risks in the country. The local experts in our Australia PEO can manage your HR and payroll tasks in the country.
Australia PEO Costs
Usually, PEOs charge based on two pricing models – fixed and variable. A PEO based on the fixed pricing model charges a transparent fee ranging between $200 – $1000 per employee per month.
Multiplier is one such PEO solution. Our costs for Australia start from $500 per employee per month. The final price depends on the complexity of employment laws of the employee’s jurisdiction.
Our prices ensure that you get the most out of your employee spending. Every employee hired through our PEO receives HR support, benefits management, and a live dashboard to track workforce spending in real-time.
How to Hire in Australia
Hiring in Australia is not different from any other country. Although work cultures can vary, the legal requirements are similar to several other countries.
For instance, hiring a full-time employee demands you to establish a local entity. Hiring without registering your entity in Australia may lead you to compliance issues, resulting in fines and penalties.
Moreover, you need to keep in mind the regulations laid down by the Fair Works Act when drafting the terms of employment contracts in Australia.
Businesses partner with an Employer of Record in Australia to avoid this issue. Partner with an EOR to accelerate your hiring and expansion plans without establishing a subsidiary.
Australia has an employment act called the Fair Work Act, which proposes regulations for employees working there. The Fair Work Act has a clause called The National Employment Standards which offers multiple options to provide fair work conditions for Australian workers, stipulated in an employment contract.
The employment contract covers
- Basic rate of pay
- Type of employment
- Overtime work
- Annual salary
Income tax slabs in Australia is as follows:
Employers can task employees for38 hours per week; However, each workday should not exceed 7.6 hours.
Under reasonable conditions, employers can request workers to pump some additional work hours during the week. However, the worker must be eligible for overtime as stipulated in the employment contract.
Employees have the right to refuse to work overtime if they find the employer’s demand unreasonable.
There must be a minimum rest period of 10 hours between the end of the first day’s work and the start of the second day.
Health and Employee Benefits
Typically, employers in Australia provide their employees with an allowance for the latter to avail of health insurance on their own. The state lays down high taxes on employers providing insurance on their own.
Companies in Australia are recommended to budget 18% of each employee’s cost to cover the costs of providing statutory benefits.
Need help with offering benefits in Australia at par with Fortune 500 companies? Partner with an Australian PEO like Multiplier to provide your employees with benefits at scale.
There are no minimum statutory requirements for annual bonuses in Australia. However, more than 33% of Australian employees receive yearly bonuses.
Employees receive an annual bonus of 6%-10% of their yearly pay.
Partner with an Australian PEO like Multiplier to successfully handle annual bonuses for your Australian employees. We have experts who understand the business ecosystem and work culture in Australia – they can guarantee that you keep your employees happy by exceeding their expectations.
Offering vacation in Australia is like any other country. Australia observes seven public holidays. Employees have ten days of sick leave as stipulated by national law.
Australians observe and celebrate seven national public holidays.
- New Year’s Day
- Australia Day,
- Good Friday,
- Easter Monday,
- Anzac Day,
- Christmas Day, and
- Boxing Day.
Female workers in Australia are entitled to up to 18 weeks of paid maternity leave. Australia’s public health care system covers this benefit – employees can choose to receive additional benefits if they need them.
Female employees can receive up to 18 weeks of paid maternity leave, which the federal government provides as part of Australia’s public health care system. Employers have the option to provide these employees with additional benefits if they so choose.
Employees are eligible to receive maternity if:
The parents are the primary caregiver of a newborn child or have adopted a child.
Besides, the Australian government mandates a requirement for the employee to have worked for the same company ten months before taking maternity leave.
Provided the partner of the women employee hasn’t availed any paid leaves for the pregnancy period, the former can avail paid vacation for up to 2 weeks.
- Full-time employees are entitled to up to 25 – 30 days of vacation per year.
- Untaken leaves in one year can be carried over to the next. Accumulated leaves can be cashed in for monetary compensations at the time of termination of employment.
- Taking leave on public holidays and sick leaves should not reduce the number of annual leaves.
Employees can take sick leaves on account of illness, medical emergencies, etc. Employees can avail sick leaves to care for a family member who is ill or inflicted with an emergency.
- According to the Fair Works Act, employees are entitled to 10 paid sick leaves per year.
- Untaken sick leaves remaining in one year can be carried forward to the following year.
- The employer must fund sick leaves.
The minimum statutory notice period to offer notice varies depending on the number of years the employee has served for the company.
The termination period is as follows:
- Less than one year with the company – one weeks’ notice.
- 1-3 years – two weeks’ notice.
- 3-5 years- three weeks’ notice.
- 5+ years – four weeks’ notice.
Suppose an employee believes they were unreasonably terminated. They can file a complaint with Australia’s Fair Work Commission within 21 days.
If the employee wins the case, they can receive up to 6 months of compensation from the employer.
Terminating an employee is not easy in places where the state is protective of its employees. To create flawless and riskless termination experiences for your employees, you can partner with an Australian PEO like us. As the #1 PEO worldwide, our experts work hard to ensure riskless and top-tier employee experiences worldwide.
With Multiplier’s PEO/EOR solution, treading into a new market is as seamless as confidently ice-skating.
Without the hassle of setting up a foreign branch or subsidiary, we can help you onboard your preferred candidate, handle HR issues and payroll, and ensure compliance with local laws.
Once you have chosen your desired talent, start generating and customizing employment contracts for them in a few clicks and manage the workforce from a single platform. You can also pay thousands of employees in Australian Dollars with a single click.
Hire and expand using the best SaaS-based PEO service in Australia. Contact us to grow your business today.