🇦🇺 EOR Guide —
Australia
Everything you need to know about using an Employer of Record in Australia — provider fees, compliance risks, hire speed, and EOR vs direct employment.
Superannuation rate
11% of ordinary time earnings
National minimum wage
A$24.10/hr (2024–25)
Minimum annual leave
4 weeks (20 days)
Personal/sick leave
10 days per year
Notice period
1–4 weeks (service-based)
EOR providers active
Deel, Remote, Rippling, Oyster, Velocity Global
Our Recommendation
EOR ideal for initial Australian hires
Australia has a mature EOR market with strong provider competition. The mandatory 11% superannuation contribution and the Modern Award system are the key compliance areas. EOR providers handle both well. Consider a Pty Ltd once you have 10+ permanent employees.
EOR provider fee range for Australia
Rates vary by provider, headcount, and benefits scope. Always request itemised quotes from at least three providers.
EOR vs Direct Employment
EOR advantages in Australia
- No Pty Ltd required
- Provider handles superannuation (11%)
- Fair Work Act compliance managed by provider
- Fast onboarding
EOR limitations in Australia
- 9–15% markup
- Modern Award classification must still be determined
- Provider controls employment contract template
Direct employment advantages
- Full entity control
- No markup at scale
- Direct compliance with Fair Work Act
Direct employment limitations
- Pty Ltd setup required
- Superannuation administration
- Modern Award system adds complexity
Local Entity Options
Setting up a legal entity in Australia.
If you outgrow EOR or prefer direct employment, these are the main legal structures available in Australia for foreign companies.
Proprietary Limited Company (Pty Ltd)
Setup time
1–5d
Est. cost
$1,500
Min. capital
None
Corp. tax
30%
Div. WHT
30%
VAT rate
10%
Annual obligations
- Annual financial report (ASIC)
- Tax return (ATO)
- PAYG withholding
- BAS (GST quarterly/monthly)
- Superannuation guarantee reporting
Overview
Most common structure for foreign companies entering Australia. No minimum share capital. At least 1 director must ordinarily reside in Australia. Registered office in Australia required. ASIC annual review fee AUD 310. Small companies (revenue <AUD 50M) qualify for 25% small business tax rate. GST registration mandatory if turnover exceeds AUD 75,000.
Branch of Foreign Company (ARBN)
Setup time
5–15d
Est. cost
$2,500
Min. capital
None
Corp. tax
30%
Div. WHT
30%
VAT rate
10%
Annual obligations
- ASIC annual return
- Audited financial statements (parent and branch)
- Tax return (ATO)
- BAS (GST)
Overview
Foreign companies can register a branch in Australia (Australian Registered Body Number — ARBN). Must appoint a local agent. Must lodge parent company financial statements with ASIC. Branch profits subject to Australian corporate tax. Branch remittances to parent subject to dividend withholding tax. More complex ongoing compliance than Pty Ltd.
Compliance Risks
Key EOR compliance risks in Australia.
Discuss each of these with your chosen provider before signing.
Superannuation guarantee
HighEmployers must contribute 11% of ordinary time earnings to a complying super fund. Missed or late contributions trigger the Superannuation Guarantee Charge with penalties.
Modern Award coverage
HighMost employees in Australia are covered by a Modern Award that sets minimum pay rates, penalty rates, and allowances above the National Minimum Wage.
Fair Work Act compliance
MediumThe Fair Work Act sets the National Employment Standards — 10 minimum entitlements including annual leave (4 weeks), sick leave (10 days), and parental leave.
Payroll tax (state-level)
MediumEach Australian state levies payroll tax once your total payroll exceeds a state-specific threshold. Rates range from 4.75% to 6.85%.
Cost Estimator
Estimate your Australia EOR cost.
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