Expanding into Australia offers access to a skilled, diverse workforce, yet its strict employment laws and high compliance standards can be complex. Omnipresent steps in as your Employer of Record (EOR), managing obligations like Fair Work Act compliance and superannuation contributions, so you can hire without setting up a local entity.

Our EOR solution handles payroll, tax reporting, and benefits like the mandatory 25% annual leave loading, letting you focus on leading your team in Sydney, Melbourne, or beyond. With our platform, you get seamless support tailored to Australia’s unique market, ensuring your business thrives Down Under.

• Rapid onboarding in just days.
• Full compliance with ATO requirements.
• Local expertise on competitive wages.
• Simplified expansion across states.

Employer costs include Superannuation, Government Payroll Tax, and Workers Comp. Use the OmniCalculator to estimate costs, or contact us for further information.

Income taxes

Australian resident individuals

For income year 2024–25, the thresholds, rates and tax payable are as follows:

• for taxable income up to 18,200 dollars, no tax is due;

• for taxable income from 18,201 dollars to 45,000 dollars, the tax due is 16 cents for each dollar over 18,200 dollars;

• for taxable income from 45,001 dollars to 135,000 dollars, the tax due is 4,288 dollars plus 30 cents for each dollar over 45,000 dollars;

• for taxable income from 135,001 dollars to 190,000 dollars, the tax due is 31,288 dollars plus 37 cents for each dollar over 135,000 dollars; and

• for taxable income greater than 190,000 dollars, the tax due is 51,638 dollars plus 45 cents for each dollar over 190,000 dollars.

Foreign resident individuals

For income year 2024–25 and onwards, the thresholds and rates are as follows:

• for taxable income up to 135,000 dollars — the tax due is 30 cents for each dollar;

• for taxable income from 135,001 dollars to 200,000 dollars — the tax due is 40,500 dollars plus 37 cents for each dollar over 135,000 dollars; and

• for taxable income greater than 190,000 dollars — the tax due is 64,550 dollars plus 45 cents for each dollar over 190,000 dollars.

A levy of 2 percent is payable by resident individuals to fund Medicare, a universal health program that provides free basic medical and hospital care. Relief is available to those with taxable income below certain levels. High level taxpayers have to make an additional contribution of 1 percent to 1.5 percent if they do not have adequate private health insurance.

Employers must contribute a set minimum percentage of the employee's earnings base, subject to limited exceptions, to a complying superannuation fund on behalf of their employees or be liable to a superannuation guarantee (SG) charge. The required SG percentage will progressively increase up to 12% as follows:

• From 1 July 2024: 11.5%.

• From 1 July 2025: 12%.

It is usually tax effective (subject to certain limits) for employees to forgo or 'sacrifice' part of their salary to allow employer superannuation contributions on their behalf above this minimum. There is no limit to the amount of contributions that can be claimed as a deduction. However, there are limits on the amount that can be contributed per individual per income year that are eligible to receive concessional (favourable) tax treatment.

Protected Earnings Amount (PEA) Adjusts PEA is the part of an employee’s or contractor’s wages that are exempt from child support deductions. The adjusted PEA is effective January 1, 2024 and each year to allow for increases in the cost of living.

National Employment Standards maximum working hours are 38 hours per week.

Overtime rates apply under the Modern Awards. Awards are either industry-based or occupation-based. If an employee is not an Award employee they do not have a statutory right to be paid overtime.

Employees are entitled 10 days of paid personal sick leave or carer's leave per year.

Maternity leave:

12 months of unpaid maternity leave (after 12 months of continuous service). Employers can provide paid maternity benefits. Paternity leave:

5 days of unpaid leave. Parental leave: Parents can use the Federal Government Scheme for up to 18 weeks of paid parental leave if eligible.

In Australia, employees are entitled to minimum 4 weeks (20 working days) of paid annual leave per year (plus public holidays), accruing progressively.

As noted above, all of the Modern Awards provide for annual leave loading at 17.5%.

Severance pay is only due in cases of redundancy.

Australia is an 'unfair dismissal' jurisdiction. It can be difficult to terminate employees in Australia, and procedural fairness and a valid reason is always required. Reasons for termination will vary depending on the number of employees an employer has and the length and type of service.