4. Types of leave

There is no information about the types of leave for this country.
Learn more about types of leave >

Paid time off

Full-time staff are entitled to 4 weeks of paid vacation each year, while shift workers are entitled to 5 weeks.

Public holidays

Public holidays in Australia are varied depending on the state.

Sick days

Employees are entitled to ten days of paid leave each year, which they will take if they are ill or need to care for a family member.

Maternity leave

Since working for 12 months for the same boss, mothers are entitled to 12 months of free maternity leave. Any businesses have paid maternity leave.

Employees may also refer to the Federal Government's parental leave program, which pays for up to 18 weeks of maternity leave.

Paternity leave

Employees are entitled to ten days of paid leave each year, which they will take if they are ill or need to care for a family member.

Parental leave

Maternity and paternity leave, as well as leave for when an infant is adopted, are both included in parental leave. An employee must have worked for at least 12 months to be considered.

Parental leave is an unpaid leave that lasts for 12 months and can be extended by the boss for another 12 months.

Other leave

Bereavement Leave. Employees in Australia are granted 2 days of paid leave after the death of an immediate family member.

5. Employment termination

There is no information about employment information for this country.

Termination process

The cause for termination varies according to an employee's number of coworkers, as well as the length and type of employment.

There is no requirement for a stated reason for termination for up to 15 permanent workers with a maximum tenure of six months. For permanent employees with tenures of at least six months, a specific and legitimate reason for termination is required. No specific reason for termination is required for employees with a tenure of less than 15 months. For less than 15 permanent workers with a minimum 12-month employment duration, a clear and legitimate reason for termination is required. For casual workers who have worked for the company for at least 12 months, a precise and legitimate basis for termination is required. Employees who are terminated within the first six months of employment (or 12 months if employed by a small firm) are unable to file a claim with the Fair Work Commission for "unfair dismissal." However, there are some exceptions to this rule known as General Protections matters, which do not require a minimum period of engagement. Unfair dismissal claims are adjudicated by the Fair Work Commission through a specialized employment tribunal.

Notice period

The notice period is determined by the length of employment of the employee. Employees with less than one year of service will given a one-week notice period. Employees with one to three years of service will receive two weeks' notice. Employees with three to five years of service will receive three weeks' notice. Employees who have worked for the company for more than five years will receive four weeks' notice. Employees who are above the age of 45 and have worked for the company for at least two years are entitled to an additional week of notice.

Probation period

The probation period is six months; however, if an employer has more than fifteen employees, the probation period is extended to twelve months. Employers can also reduce the minimum probationary period. However, by doing so, the employer forfeits the benefits of a probationary period.

Severance pay

Severance pay is determined by the length of continuous service and the pay rate is determined by the number of ordinary hours worked. If the period of service is at least one year but less than two years, the employee is entitled to four weeks' severance pay. If the period of service is at least two years but less than three years, the employee is entitled to six weeks' severance pay. If the period of service is at least three years but less than four years, the employee is entitled to seven weeks' severance pay. If the service period is at least four years but not more than five years, an 8-week severance pay is provided. If the period of service is at least five years but not more than six years, a severance payment of ten weeks is provided. If the service period is at least six years but less than seven years, 11 weeks of severance pay is provided. If the period of service is at least seven years but less than eight years, the employee is entitled to 13 weeks of severance pay. If the period of service is between 8 and 9 years, a 14-week severance pay is provided. If the period of service is between 9 and 10 years, 16 weeks of severance pay is provided. If the employee has served for at least ten years, he or she is entitled to 12 weeks of severance pay.

6. Working hours

There is no information about the working hours for this country.

General working schedule

In Australia, working hours are determined by an employer, the position held by an employee, or the sector in which the employer operates. In Australia, the standard workweek is 38 hours spread over five days. Employees frequently work a 40-hour week and get a half day (four hours) off every other week.

Overtime

For the first three hours (two hours in some industries), overtime is paid at 1.5 times the regular rate, and afterwards at two times the basic rate.

7. Minimum wage

There is no information about the working hours for this country.

In Australia, employees are entitled to a basic minimum wage per hour/week, unless an employer or industry has negotiated a different rate. Wages in Australia vary according to the nature of the job and/or the capacity in which an individual is employed.

Bonuses are common in Australia and are calculated on an annual salary basis. Pay increases on average every 16 months, but is subject to industry and level of experience.

Australia's minimum wage increased to 20.33 Australian dollars (15.03 USD) an hour on July 1, 2021. (772.60 AUD or 571.35 USD per week).

8. Employee benefits

There is no information about the working hours for this country.

There are two health-care systems in Australia: public and private. Australians with taxable earnings over a certain indexed level contribute 2 percent of their taxable income into Medicare, the national healthcare system.

Individuals may also acquire private health insurance for things that are not covered by the mandatory Medicare system, such as auxiliary health services (e.g., dental, optical, etc.) and private hospital accommodation.

Individuals who opt not to purchase private insurance and have an annual taxable income over a certain level are subject to a 1-percent Medicare fee.

Due to the comparatively high fringe benefits tax, many companies in Australia offer an allowance to workers rather than buying health insurance policies on their own.

9. Taxes

There is no information about the working hours for this country.

Corporate tax

Companies and corporations pay a business tax on their earnings and/or losses. Unlike personal income taxes, which are computed on a graduated scale, corporation taxes are calculated at a flat rate of 30% (25 percent for small firms, defined as organizations with less than $2 million in annual sales). Company income is taxed at the corporate level before it is dispersed to shareholders as dividends.

Residents who receive dividends may claim a tax credit (known as a franking credit) to offset the tax previously paid at the corporate level (a process known as dividend imputation). Unfranked dividends given to non-resident shareholders are subject to withholding tax.

Individual income tax

Individual income taxes are levied at the federal level. This is Australia's most important source of income. Since World War II, state governments have not levied income taxes.

Personal income taxes are levied on each individual's personal income in Australia on a progressive basis, with higher rates applied to higher income levels. Unlike in several other nations, personal income tax is levied on an individual rather than a family unit in Australia.

Individuals are additionally taxed on their share of any partnership or trust earnings earned throughout the fiscal year.

Individual income tax rates typically vary from 0% to 45 percent.

VAT, GST and sales tax

A goods and services tax (GST) is a ten percent value-added tax imposed by the federal government on the delivery of most products and services by tax-registered businesses. Many supplies are GST-free (for example, many essential foodstuffs, medical and educational services, and exports), input-taxed (for example, residential accommodation, financial services, and so on), exempt (for example, government levies), or otherwise beyond the purview of GST.

The proceeds of this tax are allocated to the states. State governments do not collect sales taxes, although they do charge stamp fees on a variety of transactions.

Two kinds of sales are handled differently:

Suppliers of GST-free products and services would not be required to pay GST on sales, but they will be eligible for GST credits.

Suppliers of input-taxed products and services are not required to levy GST on their sales, but they cannot collect GST credits on their purchases of inputs.

10. VISA and work permits

There is no information about the working hours for this country.

Australia's visa policy is concerned with the laws and regulations governing foreign visitors who require a visa to enter the country. A visa is a travel permit issued by a country to foreigners that allows them to enter, remain in, or leave the country. Since 2004, Australia has maintained a visa policy known as a universal visa regime. According to this policy, every non-citizen who wishes to visit Australia must have a visa.

The visa requirements for entering this country differ from person to person. These requirements are determined by a variety of factors, including the traveler's nationality and intended length of stay.

For those wishing to enter the country, Australia offers a variety of visas and travel permits. More than 40 nationalities can obtain electronic visas and travel authorizations.

Long-term stays will require an application to the Australian embassy. Almost all visitors must apply for a visa before visiting Australia, according to Australian visa policy.

However, there is an exception for New Zealand nationals. New Zealanders have the right of abode in Australia and can obtain a Special Category Visa upon arrival.

11. Employer Of Record service terms

There is no information about the working hours for this country.

Employment contracts

The basic rate of pay

The type of employment (full-time, part-time, or casual)

Overtime rates

Work arrangements such as varying hours or shifts

Annual salary

Information on leave and leave taking

Allowances

Information on settling disputes

Redundancy

A flexibility term to allow negotiation to meet individual needs

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Australian Dollar (AUD)

United States Dollar (USD)

13.Opening a subsidiary in Australia

There is no information about the working hours for this country.

How to set up a subsidiary

The process of establishing an Australia subsidiary starts with determining the optimal structure for your business. You may choose to operate as a foreign branch or as a fully-owned Australian subsidiary. A branch may be tax exempt, although a subsidiary is normally taxable. However, businesses intending to conduct long-term operations in the nation must register with the Australian Securities and Investments Commission (ASIC) and establish a subsidiary.

The following steps are required to establish an Australian subsidiary:

1. If you want to do business in Australia, you must get an Australian Business Number (ABN) and a Tax File Number (TFN).

2. Ensure that you are registered for the Goods and Services Tax (GST) and Pay As You Go (PAYG) withholding taxes. It is essential to adhere to these and other tax regulations.

3. Choose a business name that complies with local regulations and does not conflict with any other names.

4. Appoint or nominate a local representative and allow them to receive legal notifications. A minimum of one director of an Australian subsidiary must be an Australian resident.

5. Establish bank accounts in Australia for payroll needs and a physical presence. Due to the fact that several subsidiary laws differ by Australian state, you must ensure that you comply with all local requirements after you locate a site.

Subsidiary laws

According to Australian subsidiary legislation, if you form your subsidiary as a limited private company, you cannot have more than 50 non-employee shareholders. The government has no restrictions on the proportion of foreign ownership, except you must nominate an Australian resident as a director.

In contrast to many other nations, Australia does not need a minimum share capital to establish a subsidiary. Even AUD$1 is sufficient to register your business. Companies are obligated to file accounts with ASIC, however they are not compelled to divulge any financial data from US-based companies.

13. Why choose Rivermate as your Employer of Record / PEO in Australia

Establishing an entity in

Australia

to hire a team takes time, money, and effort. The labor law in

Australia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Australia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Australia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Australia

via our Employer of Record / PEO solution.

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