Payroll and Benefits Guide - Australia

Australia
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Currency

Australian Dollar
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Capital

Canberra
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Employer Taxes

15.85%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 July – 30 Jun

Fun Facts

The Great Barrier Reef is the largest coral reef system in the world.

The Sydney Opera House is one of the most famous and distinctive architectural landmarks in the world.

Australia is known for its “big” attractions, which are oversized and often quirky roadside structures

Australia is known for its dangerous wildlife.

Australia has a strong surfing culture.

Australians are known for their love of coffee.

Contributions

Employee Payroll Tax

Contribution Type Rate
Payroll Tax 4.85%
Medicare 1.00%
Superannuation 10.00%

Employer Payroll Tax

Contribution Type Rate
Payroll Tax 4.85%
Medicare 1.00%
Superannuation 10.00%

Payroll

Payroll Cycle

Employees are paid weekly, bi-monthly, or monthly.

13th Salary

The law in Armenia does not include specific provisions regarding the payment of 13th salaries.

Work Hours and Week

The standard work hours is 38 hours per week.

Overtime

Overtime is typically compensated for hours worked beyond the standard weekly or daily limits. This usually applies to work exceeding 38 hours per week or 10 hours per day. Additionally, employees who work on weekends or public holidays may receive overtime pay or a penalty, particularly for those covered by specific industry awards or agreements.

Leave

Paid Time Off

Full-time employees have 4 weeks of paid leave per year, while employees who work in part-time shifts are entitled to 5 weeks.

Public Holidays

Public holidays vary by state.

Sick Days

Employees are entitled to 10 days of paid leave per year. This paid leave ensures that employees can attend to their own health or support their family members during challenging times while still receiving their regular compensation.

Maternity Leave

After completing a minimum of 12 months of employment with the same employer, mothers have the right to take a 12-month period of unpaid maternity leave.

Paternity Leave

Fathers have the right to take up to 5 days of unpaid leave when their child is born or adopted.

Parental Leave

To qualify for parental leave in Australia, an employee must have worked for at least 12 months, and it includes maternity, paternity, and adoption leave. The unpaid leave can be taken for up to 12 months, and an additional 12-month extension can be requested from the employer.

Termination

Termination Process

  • 15 employees
    • Length of Employment: Up to 6 months
    • Type of employees: Permanent
    • Reasons for terminations: No specific reason is needed
  • Over 15 employees:
    • Length of Employment: 6 months+
    • Type of employees: Permanent
    • Reasons for terminations: A valid reason is needed
  • 15 employees or less:
    • Length of Employment: Up to 12 months
    • Type of employees: Permanent
    • Reasons for terminations: No specific reason is needed

Notice Period

The notice period is determined by the amount of time the employee has been employed:

  • Less than 1 year of employment: 1 weeks’ notice
  • 1-3 years of employment: 2 weeks’ notice
  • 3-5 years of employment: 3 weeks’ notice
  • 5+ years of employment: 4 weeks’

Severance Pay

Severance pay is given based on a continuous period of service, and the pay rate is given for ordinary hours worked.

Probation Period

Probation Period

The Probation period in Australia is usually six months.

Immigration

Australia has a diverse range of Visas that are intended to suit various professions. Each visa is unique and has specific requirements.

VAT

The commonly used VAT or called Good and Services Tax in Australia is 10.00%.