🇦🇺 Hiring in
Australia
What every employer needs to know before hiring in Australia — contracts, payroll setup, social security, and HR compliance obligations.
Key Employment Facts — Australia
Minimum Wage
A$ 24.95
Annual Leave
4 days
Notice Period (min)
1 day
Probation Period (max)
6 days
Maternity Leave
12 weeks
13th Month Pay
Not required
How to Hire in Australia — Step by Step
Verify your hiring structure
Decide whether to hire via a local legal entity, a Professional Employer Organisation (PEO), or an Employer of Record (EOR). An EOR lets you hire in Australia without setting up a local company.
Issue a compliant employment contract
All employees in Australia must receive a written employment contract. It must cover job title, salary, working hours, notice period, and leave entitlements before or on the first day of employment.
Register for payroll and tax
You must register with the relevant Australia tax authority before making any salary payments. Payroll must be run in local currency and employer contributions must be filed on time.
Enrol in social security
Employers in Australia are required to enrol employees in the national social security scheme from day one. Both employer and employee contributions are mandatory.
Run compliant payroll
Pay must meet the statutory minimum wage, be paid on the agreed frequency, and include all mandatory deductions. Keep payslip records for the legally required retention period.
Understand termination rules
Notice periods, severance, and redundancy rules in Australia are governed by employment law. Always seek local legal advice before terminating an employment contract.
Contractor Classification Rules — Australia
How Australia distinguishes employees from independent contractors, and the risks of misclassification.
Classification Test
Multi-factor test — Whole-of-relationship test (section 15AA)
Key Classification Factors
- ✓Right to control how work is performed
- ✓Integration into the business
- ✓Ability to subcontract
- ✓Provision of own equipment
- ✓Risk of profit or loss
- ✓Exclusivity of services
Misclassification Penalties
Back-payment of entitlements, penalties up to AUD 16,500 per contravention for individuals, SGC surcharge of 25% on super shortfall
Off-Payroll / IR35 Equivalent
No direct IR35 equivalent in Australia, but the ATO applies the same holistic test for PAYG withholding purposes.
Platform Worker Law
Gig economy workers (Uber, Deliveroo) subject to road transport industry minimum standards under the Road Safety (Costs and Charges) Act 2012 in some states.
Safe Harbour Criteria
Written contracts specifying contractor relationship, ABN registration, GST registration (if turnover >AUD 75,000), invoicing for services, ability to work for multiple clients.
Australia updated its contractor classification framework in 2022 (ABCC v Personnel Contracting case). The High Court confirmed a contract-first approach — the written agreement is the primary determinant, unless sham contracting is established. Contractors must hold an ABN and invoice for services. Superannuation Guarantee applies to certain contractors even if genuinely independent under section 12(3) SGAA — specifically those paid wholly or principally for their personal labour and skills.
Work Permits — Australia
Main visa and work permit routes for hiring foreign nationals in Australia.
Business Innovation and Investment (Subclass 188)
Processing
60–600 days
Validity
60 months
Cost
Varies
Sponsor Needed
No
For business owners, investors, and entrepreneurs. Multiple streams: Business Innovation, Investor, Significant Investor, Premium Investor, Entrepreneur. State/Territory nomination required for most streams. EOI through SkillSelect required.
Official source ↗Temporary Skill Shortage (TSS) Visa — Subclass 482 / Skills in Demand Visa
Processing
60–180 days
Validity
24 months
Cost
AUD 3,115
Sponsor Needed
Yes
Primary employer-sponsored work visa for Australia. Short-Term stream (2 years, max 4 years) for STSOL occupations; Medium-Term stream (4 years, pathway to PR) for MLTSSL occupations. Employer must be an approved sponsor. Labour Market Testing (LMT) required for most occupations. Skills assessment may be required.
Official source ↗Employer Nomination Scheme (ENS) — Subclass 186
Processing
150–570 days
Validity
Permanent
Cost
AUD 4,640
Sponsor Needed
Yes
Permanent residence visa for skilled workers nominated by an Australian employer. Three streams: Direct Entry (overseas applicants), Temporary Residence Transition (from TSS 482), and Agreement stream. Occupation must be on the MLTSSL. Age limit 45 years. Skills assessment required.
Official source ↗EOR Intelligence
Skip the entity setup — hire via EOR in Australia.
An Employer of Record handles all local compliance on your behalf.
This guide is for informational purposes only and does not constitute legal or HR advice. Employment law in Australia is subject to change. Always consult a qualified local employment lawyer before hiring.
About This Guide
- ✓ Sourced from official government publications
- ✓ Updated monthly — always current rules
- ✓ For guidance only — not legal advice
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