Good to know
Local Currency: Australian dollar (AUD)
Minimum Salary: $882.80 per week (for a 38 hour week) or $23.23 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 scheme 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 scheme.
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:
Goverment agency responsible for the delivery of income support payments and services to eligible individuals and families.
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.
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 | |||||
(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:
- You or one of your family doesn’t have the appropriate level of private patient hospital cover.
- You earn above AUD 90,000 for singles or AUD 180,000 for families.
(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 | ||||
| $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
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Australia
HR & Payroll in Australia
Good to know
Local Currency: Australian dollar (AUD)
Minimum Salary: $882.80 per week (for a 38 hour week) or $23.23 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 scheme 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 scheme.
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 Organisation
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:
Goverment agency responsible for the delivery of income support payments and services to eligible individuals and families.
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.
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 | |||||
(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:
- You or one of your family doesn’t have the appropriate level of private patient hospital cover.
- You earn above AUD 90,000 for singles or AUD 180,000 for families.
(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
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Australian dollar (AUD)
Minimum Salary: $882.80 per week (for a 38 hour week) or $23.23 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 scheme 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 scheme .
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 Organisation
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:
Goverment agency responsible for the delivery of income support payments and services to eligible individuals and families.
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.
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 | |||||
(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:
- You or one of your family doesn’t have the appropriate level of private patient hospital cover.
- You earn above AUD 90,000 for singles or AUD 180,000 for families.
(3) You can refere 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
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure