🇦🇺 Cost of employing in Australia
In Australia the superannuation guarantee is the main employer on-cost. State payroll tax applies only above thresholds and is usually handled (and sometimes passed through) by the EOR. Workers' compensation premiums vary by state and industry.
Status key: Verified read on the official source page · Pending re-check from an official source, figure not yet re-read on the page · Coming soon not shown until verified. Every figure links to its source and shows the date we last checked it.
Employer on-costs and statutory contributions
| Item | Rate | Base / cap | Effective | Source · checked | Status |
|---|---|---|---|---|---|
| Superannuation guarantee (SG) Paid by: employer MCB: source . Payday Super: SG due with each pay from 1 Jul 2026 (source). | 12% of qualifying earnings | Max contribution base $270,830 per year (2026-27) | 2025-07-01 (12%); Payday Super from 2026-07-01 | ato.gov.au ↗ 22 Oct 2026 | Verified |
| Payroll tax - NSW Paid by: employer Applies only above the threshold; ask your EOR whether it is passed through. | 5.45% | Threshold $1.2m AU-wide wages (apportioned) | 2026-07-01 (FY2026-27) | revenue.nsw.gov.au ↗ 22 Oct 2026 | Verified |
| Payroll tax - VIC Paid by: employer | 4.85% (regional 1.2125%) | Tax-free threshold deduction up to $1,000,000 (from 1 Jul 2025); deduction phases out for larger payrolls | FY2026-27 | sro.vic.gov.au ↗ 22 Oct 2026 | Verified |
Coming soon – not yet verified against an official source, so no figures are shown.
- Payroll tax - QLD
- Payroll tax - WA
- Payroll tax - SA
- Workers' compensation insurance
Leave and termination rules
| Rule | Detail | Source | Checked | Status |
|---|---|---|---|---|
| Annual leave | 4 weeks paid per year (non-casual), plus an extra week for certain shift workers | fwc.gov.au ↗ | 22 Oct 2026 | Verified |
| Personal/carer's leave | 10 days paid per year (includes sick leave); 2 days unpaid carer's leave as required; 2 days compassionate leave | fwc.gov.au ↗ | 22 Oct 2026 | Verified |
| Notice of termination | Employer notice by continuous service: not more than 1 yr: 1 week; >1 to 3 yrs: 2 weeks; >3 to 5 yrs: 3 weeks; >5 yrs: 4 weeks. +1 week if employee is over 45 with at least 2 years continuous service. | fwc.gov.au ↗ | 22 Oct 2026 | Verified |
| Redundancy pay | NES table by continuous service: 1-<2 yrs 4 wks; 2-<3 yrs 6 wks; 3-<4 yrs 7 wks; 4-<5 yrs 8 wks; 5-<6 yrs 10 wks; 6-<7 yrs 11 wks; 7-<8 yrs 13 wks; 8-<9 yrs 14 wks; 9-<10 yrs 16 wks; 10+ yrs 12 wks. Small business employers exempt (with exceptions) | fwc.gov.au ↗ | 22 Oct 2026 | Verified |
Estimate a total cost: use the calculator to add these on-costs and an EOR fee to a salary in Australia.
General information only – not legal or tax advice. Rules change and individual circumstances differ; confirm with the official source or a qualified adviser. See our disclaimer.