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Manage Employment in Australia Without the Hassle

Services available in this country:

  • Employer of Record Services
  • Local Payroll Solutions
Overview:
Australia, located between the Pacific and Indian Oceans in the southern hemisphere, is the smallest continent and one of the largest countries in the world. Known as the oldest, flattest, and driest inhabited continent, it also has relatively infertile soil. As a result, the majority of Australia’s population is concentrated in its coastal cities, including Adelaide, Brisbane, Canberra, Darwin, Hobart, Melbourne, Perth, and Sydney. The country shares maritime borders with Papua New Guinea, Indonesia, Vanuatu, New Zealand, the Solomon Islands, East Timor, and New Caledonia (France).

Risks of misclassification

Australia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Australia may lead to fines and penalties for the offending company.

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Hiring:
The Australian economy is primarily driven by the services sector, followed by industry and agriculture. Tourism is also a significant contributor, especially in major towns and cities. Graduates have a higher chance of securing employment that aligns with their qualifications in metropolitan areas such as Adelaide, Brisbane, Canberra, Melbourne, Perth, and Sydney. However, rural locations also offer considerable growth opportunities for those with the right skills and qualifications. Unemployment rates for graduates are lower compared to non-graduates, and they generally experience better outcomes in the labor market, including higher average salaries.
Recruitment:
In Australia, recruitment is primarily carried out through job portals, which enable targeted postings for relevant profiles and candidates. Additionally, headhunting is another commonly used method to attract top talent. Together, these approaches streamline the recruitment process, making it more efficient and less burdensome.
Interview:
In Australia, recruitment is primarily carried out through job portals, which enable targeted postings for relevant profiles and candidates. Additionally, headhunting is another commonly used method to attract top talent. Together, these approaches streamline the recruitment process, making it more efficient and less burdensome.
Application:
CVs play a crucial role in creating a strong first impression. The way a CV is presented and organized reflects an individual’s mindset, professionalism, and attitude. This makes it an essential tool for the early screening of suitable candidates.
Employment:

Working Hours

  • Working hours in Australia are 7.6 hours per day, Monday to Friday, adding up to 38 hours per week.
  • However, specific working hours can vary depending on the client’s company.

Probation Period

  • The standard probation period is usually six months, although it can be extended to twelve months if the employer has more than 15 employees.
  • Employers can also shorten the minimum probation period if needed.

Payroll Cycles

  • Payroll in Australia can follow a weekly, fortnightly, or monthly cycle.
  • Although there are no legal requirements for fixed payment dates, the common practices are as follows:
    • Monthly: Payments made between the 28th and 30th of each month.
    • Bi-weekly: Payments are made every second week, typically on Wednesdays or Thursdays.
    • Fortnightly: Payments are made on the 15th and 30th of each month.

Official Deductions from Salary

  • Deductions can include unpaid leave and various forms of taxes, including income tax, salary sacrifice.
Work Hours
  • The standard workday is generally from 9 am to 5 pm, Monday to Friday, with a lunch break lasting between 30 to 60 minutes.
Public Holidays
  • Public holidays in Australia can vary by state and territory. National holidays such as New Year’s Day and Australia Day are observed nationwide, but regional holidays may differ.
Casual and Sick Leave
  • Employees are entitled to 10 days of sick leave (also known as personal leave) per year, which is prorated based on the employee’s start date.
  • This leave can be used for personal illness or to care for a family member.
Maternity and Paternity Leave
  • Maternity Leave: Female employees are entitled up to 52 weeks of unpaid maternity leave after 12 months of continuous employment with the same employer. Some employers may offer paid maternity leave as a benefit.
  • The Federal Government provides a scheme that offers 18 weeks of paid maternity leave to eligible employees.
  • Paternity Leave: Fathers or partners are entitled to paternity leave around the time of the birth or adoption of a child. Additional leave can be applied for through the Federal Government scheme.

Earned Leave

  • Full-time employees are entitled to 4 weeks of paid annual leave each year.
  • Shift workers are granted 5 weeks of paid leave each year to account for the irregular nature of their work schedules.
Payroll:
  • The payroll process in Australia involves calculating the employee’s gross income (salary before tax) and subtracting applicable tax deductions to determine their net income (salary after tax).
  • The basic formula for calculating salary after tax is: Salary After Tax = Salary Before Tax – Total Tax Due.
Key Elements of Salary Structure The salary and wage disbursement cycle can be monthly, weekly, or fortnightly, and it is broken down into the following key components:
  • Salary Before Tax: This is the total earnings or wages an employee is entitled to before any tax deductions are applied. It is also referred to as Gross Income.
  • Salary After Tax: This is the total amount an employee takes home after all applicable taxes and contributions have been deducted from their gross income. It is also known as Net Income.
  • Total Tax Due: This is the sum of all the taxes and contributions (such as income tax, salary sacrifice, etc.)
  • Payroll Cycle: The pay cycle in Australia can be weekly, fortnightly, or monthly. There is no legal requirement to follow a specific pay cycle, but common practices include:
    • Weekly: Pay is issued once a week.
    • Fortnightly: Pay is issued every second week.
    • Monthly: Pay is issued at the end of each month.
13th Salary
  • There is no legal requirement in Australia to provide a 13th salary (an additional month’s salary paid at the end of the year). Employers are not obligated by law to pay a 13th salary.

Overtime Pay

  • The conditions for overtime pay are governed by the Fair Work Act of 2009 and Industrial Awards (industry or occupation-based agreements).
  • Employees covered by Awards are generally entitled to overtime pay if they work:
    • More than 38 hours per week or 10 hours per day.
    • If employees work on weekends or public holidays, they may also receive additional compensation, either as overtime pay or a penalty rate.
  • Non-Award Employees (or those “Award-Free”) are not entitled to overtime pay. However, they can work up to 38 hours per week plus reasonable additional hours to complete their duties.
    • The definition of “reasonable additional hours” can vary depending on the industry and nature of the work. Generally, “Award-Free” employees only work overtime if it is necessary to complete their job tasks.
Business Setup:
If you’re planning to launch a business in Australia, it’s crucial to be aware of the following steps:

1. Visa Requirements and Process

Before you can start your business in Australia, you need to obtain the right visa. The Department of Home Affairs is responsible for issuing business visas to individuals who are not Australian citizens or permanent residents. Here’s an overview of the process:
  • Submit an Expression of Interest: Use the SkillSelect online service by the Department of Home Affairs to express your interest in applying for a visa.
  • State or Territory Nomination: You must be nominated by an Australian state or territory government, or, in some cases, by Austrade’s CEO.
  • Visa Invitation: Once you receive an invitation to apply, you can begin the visa application process. You’ll need to meet certain criteria and provide necessary documentation to support your application.

2. Choosing the Right Visa

There are various visa options available for non-citizens looking to establish a business in Australia. The right visa for you depends on your business goals and qualifications.
Business Innovation and Investment (Provisional) visa This visa is ideal for individuals with entrepreneurial skills who wish to operate a business in Australia. With this visa, you can stay for up to four years and three months. After this period, you may be eligible to apply for a permanent visa if specific conditions are met.
Business Talent visas If you have substantial business experience, you may be eligible for the Business Talent visa, provided you meet the following criteria:
  • Endorsed by a regional or provincial government agency.
  • Invited to apply for the visa.
  • Have the required funding or assets.
There are two key streams within the Business Talent visa:
  • Significant Business History Stream: This is for experienced business owners wanting to operate a new or existing business in Australia. To qualify, you need: 
    • A net worth of at least AUD $1.5 million.
    • An annual business turnover of at least AUD $3 million.

3. Venture Capital Entrepreneur Stream:

This visa is designed for individuals seeking to start a high-value business in Australia, having secured venture capital funding from a member of the Australian Investment Council (AIC). To qualify, you must have, AUD $1 million in venture capital funding in Australia. By following these steps and understanding the visa options, you can take the necessary actions to start a successful business in Australia.

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