Talent Wiki - Australia

Your quick guide on talent and labor compliance norms in Australia

Capital

Canberra

Currency

Australian Dollar (AUD)

Languages

English (Official)

Payroll Frequency

Bi-weekly or Monthly

GDP per Capita

$57,300

Employer Tax

15.85%

Supplementary Guide for Employment and Expansion in Australia

Talent Wiki - Australia

Work permit

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Starting business

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Benefits & Compensation

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Payroll

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Subsidiaries

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Background checks

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Sole Proprietorship

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Employment Act

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Talent Overview

A highly developed, high-income country, Australia, has the world’s 13th biggest economy. It ranks at the 8th position in human development and 10th in the world per capita income. An abundance of natural resources and robust international trade forms the backbone of the Australian economy.

Major economic hubs:

Canberra, Melbourne, Sydney

Skills in demand:

Digital Transformation Skills, IT industry, Technical Specialists

Local Universities

The top local universities in Australia are as follows:

University of Melbourne

RANKING

Australia : 1

World : 51

Monash University

RANKING

Australia : 2

World : 57

University of Sydney

RANKING

Australia : 3

World : 63

University of New South Wales

RANKING

Australia : 4

World : 69

University of Queensland

RANKING

Australia : 5

World : 85

Salary Data

Some of the top jobs in Australia and their annual salaries are listed below:

Job TitleAverage Salary (AUD)Average Salary (USD)
Accountant66,10046,237.28
Financial Analyst122,00085,348.30
Graphic Designer56,10039,250.06
Business Analyst111,00077,655.10
Customer Service Manager129,00090,285.41
Human Resource Officer54,20037,933.87

Talent Sourcing Tips

Top Local Job Boards:

Seek, IndeedJobsearch.gov.au

Number of LinkedIn users:

13 million

Top Recruitment Agencies:

Lloyd Connect MelbourneAdeccoRandstad Australia

Employing in Australia

Employment and workplace relations in Australia are governed by the Fair Work Act of 2009. The Australian labor law framework is derived from:

  • Constitution
  • Federal and state laws
  • Statutory agreements
  • Employment contracts

Employee Contract:

No statutory requirements are mentioned in the language of the contract.

Probation Period:

The usual probationary period followed in Australia is from one to six months.

Public and Provincial Holidays:

Get to know the public holidays (state-based) in Australia here.

Employee Leaves:

Type of leaveTime PeriodMandatory
Annual leave/Earned Leave20 daysYes
Sick Leave10 daysYes
Maternity LeaveAs per employment contractYes

Payroll

Payroll Cycle

Employees are paid bi-weekly (every second week or every 15th and 30th) or monthly (28th to 30th).

Minimum Wage

The minimum wage is 20.33 AUD per hour from July 2021.

Overtime Pay

On a general note, for overtime on weekdays, the pay is 1.5 times the regular pay for the first 3 hours of overtime and, after that, twice the regular pay. On Sundays, the payment is twice the rate of regular pay. These vary depending on the industries and states.

Bonus

13th Month Pay:

It is not mandatory to have 13th month pay in

Employee Benefits:

  • Medicare
  • Maternity leave
  • Paternity leave
  • Stock options (Common for listed companies)

Taxes

Employer Payroll Tax:

Superannuation Guarantee Percentage – 10% (till 2022 July)

Afterwards, for the next one year, the rate will be 10.5%.

Payroll tax rate for individual states:

An entity will be exempt from payroll tax obligations if it has a quantum of wages that falls beneath the identified number.

Employee Payroll Tax:

Employees have to pay the medicare levy at 2%.

Employee Income Tax:

StatePayroll tax rate (%)
New South Wales4.85% (5.45% from 1st July 2022 onwards)
Victoria4.85% (for regional employers – 2.20%)
Queensland4.75% – 4.95% (depending on Australian taxable wages)
South Australia2.5% – 4.95% (depending on Australian taxable wages)
Western Australia5.5% – 6.5% (depending on WA taxable wage)
Tasmania4.0% – 6.1% (depending on Australian taxable wage)
Northern Territory5.5%
Australian Capital Territory6.85%
Taxable incomeTax(AUD)Tax % on Excess
0 – 18,2000%
18,200 – 45,00019%
45,000 – 120,0005,09232.5%
120,000 – 180,00029,46737%
180,000 – onward51,66745%

VAT:

Australia has GST instead of VAT. The Standard rate is 10%.

Offboarding & Termination

An employee can resign or be terminated by the employer. The major grounds for termination include:

  • Redundancy(operational changes)
  • Conduct
  • Poor performance

Notice period varies depending on the length of employment. During the probationary period, it is from 7 – 30 days, and for permanent employees, it ranges from one to twelve weeks.

An employee’s job might be affected by redundancy and the redundancy/severance pay for different employment terms in Australia are as follows:

Period of EmploymentSeverance Pay
Between 1 to 2 years serviceFour weeks
Between 2 to 3 years serviceSix weeks
Between 3 to 4 years serviceSeven weeks
Between 4 to 5 years serviceEight weeks
Between 5 to 6 years serviceTen weeks
Between 6 to 7 years serviceEleven weeks
Between 7 to 8 years serviceThirteen weeks
Between 8 to 9 years serviceFourteen weeks
Between 9 to 10 years serviceSixteen weeks
Above 10 years servicetwelve weeks*

*Note, there is a decrease in redundancy pay from 16 weeks to 12 weeks for employees with above 10 years of continuous employment service.

Visa and Immigration

Foreign nationals looking to work in Australia need to apply for a visa.  Application is taken in through the various immigration programs administered by the Department of Home Affairs (DHA) of Australia.

The Temporary Skills Short visa (subclass 482) can be utilized by businesses to meet skill shortages by hiring foreign nationals to live and work in Australia for 2 years – or up to 4 years in some circumstances – where a suitably skilled Australian cannot be engaged.

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