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Employee Leasing in Australia

Australia, thanks to its proximity to Asian markets and the cultural diversity and high skill of its talent pool, is considered one of the best destinations for business expansion in the world. Expanding into Australia allows companies to benefit from the country’s thriving business environment and advanced infrastructures.

Employee leasing allows businesses to easily enter the Australian market and gradually measure their growth potential in the country. The employee leasing services offered by FMC Group give clients the opportunity to concentrate on business decisions, while FMC Group handles the administrative procedures relating to the recruitment and management of local employees. This provides clients with remarkable flexibility that allows them to reduce investment risk.

Content:

  • Advantages of Employee Leasing in Australia
  • Employee Leasing Services Offered by FMC Group
  • Advantages of the Australian Market
  • Recruitment in Australia
    • Minimum Wage and Payroll
    • Social Contributions and Taxes
    • Working Hours
    • Vacation Days
    • Parental Leave and Sick Leave
    • Notice Period
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Stephan Dorn FMC Group

Advantages of Employee Leasing in Australia

  • Expanding into Australia through employee leasing will put your business into a thriving economy that offers countless opportunities in various sectors.
  • Employee leasing gives you the opportunity to immediately expand your business activity into Australia and take full control of a local team.
  • Through employee leasing, you can have quick and easy access to the highly-skilled workforce established in Australia.
  • Australian workers are incredibly familiar with international business standards and practices, and being native English speakers makes them great at communication with international partners.

Employee Leasing Services Offered by FMC Group

  • We select the best candidates that match your needs both in the labor market and in our growing talent database.
  • We negotiate and sign employment contracts according to your requirements.
  • We professionally manage your employees’ payroll according to international standards and we pay all the necessary social security contributions and taxes according to local regulations.
  • We pay all types of expenses and allowances after your approval.
  • We monitor paid vacations and other leaves of your employees according to local regulations.
  • We negotiate and establish a private health insurance policy for your employees if requested.
  • We maintain regular contact with you regarding the management of your employees.

Management and Reporting Flow of Employee Leasing Services

Management and Reporting Flow Chart

Advantages of the Australian Market

  • Australia has a very attractive consumer market. Despite having a relatively small population of around 25.7 million people, the country’s thriving economy provides the population with considerable disposable income. According to the OECD Better Life Index, Australia ranks fifth in the world in terms of disposable income per household, at about USD 37,433 per year.
  • The Australian economy is remarkably strong and stable. The country has maintained a very low budget deficit over the past decades and was able to record average GDP growth of 3.3% per year since 1990. Australia was also able to maintain its inflation rate below 2.5% over the same period.
  • Australia provides great access to Asian markets thanks to its geographic proximity to the continent. Australia has also signed many Free Trade Agreements with Singapore, Thailand, Malaysia, Korea, Japan, China, Hong Kong, Indonesia, and the Association of Southeast Asian Nations (ASEAN), among other countries and trade blocs.
  • Over the past few decades, Australia was able to attract talented professionals from all around the world, thanks to its quality of life and the reputation of its higher education system. The country currently counts more than 7.5 million migrants, a large number of which are highly-skilled professionals. This contributes to the quality and diversity of the Australian talent pool.
  • More information about the advantages of investing in Australia is provided by the Australian Trade and Investment Commission.

Recruitment in Australia

Minimum Wage and Payroll

  • The minimum wage in Australia is set at AUD 20.33 (EUR 13.90) per hour or AUD 772.60 (EUR 528.28) per week.
  • Salaries in Australia can be paid either weekly, biweekly, or monthly. There are no legal requirements as to when employees need to be paid.

Social Contributions and Taxes

Employer Contributions
Superannuation 10.50%
Payroll Tax 4.00% – 6.85%*
Medicare 1.00%
Total 15.50% – 18.35%
Employee Contributions
Superannuation 10.50%
Payroll Tax 4.00% – 6.85%*
Medicare 1.00%
Total 15.50% – 18.35%
Employee Income Tax
Up to AUD 18,200 per year (EUR 12,445) 0.00%
Between AUD 18,201 and AUD 45,000

(EUR 12,445 – EUR 30,770)

19 cents for each dollar over AUD 18,200
Between AUD 45,001 and AUD 120,000

(EUR 30,770 – EUR 82,052)

AUD 5,092 (EUR 3,482)

+ 32.5 cents for each dollar over AUD 45,000

Between AUD 120,001 and AUD 180,000

(EUR 82,052 – EUR 123,078)

AUD 29,467 (EUR 20,149)

+ 37 cents for each dollar over AUD 120,000

From AUD 180,001

(EUR 123,078)

AUD 51,667 (EUR 35,328)

+ 45 cents for each dollar over AUD 180,000

*Varies from one state to another

Working Hours

  • The legal working hours limit in Australia is set at 38 hours per week.

Vacation Days

  • Employees in Australia have the right to between four and five weeks of annual paid leave.
  • Australia celebrates seven nationwide public holidays:
    • New Year’s Day: January 1st;
    • Australia Day: January 26th;
    • Good Friday: Between March and April (moveable);
    • Easter Monday: Between March and April (moveable);
    • Anzac Day: April 25th;
    • Christmas Day: December 25th;
    • Boxing Day: December 26th.
  • Other public holidays are individually declared by state governments.

Parental Leave and Sick Leave

  • Pregnant employees who have been employed for more than 12 months before their child’s birth date are entitled to 12 months of unpaid maternity leave. During this period, they can apply to the Federal Government scheme which provides payment for 18 weeks of maternity leave.
  • New fathers are entitled to five days of unpaid leave after the birth or adoption of a child. They can also apply to the Federal Government scheme for additional leave.
  • Employees in Australia are entitled to 10 days of paid sick leave per year.
  • In the event of the death of a close family member, employees have the right to take two days of paid leave.

Notice Period

  • The notice period for employees wishing to resign depends on the time they have spent working at the service of their employer.
  • Employees who have worked for less than one year have to give one day’s notice.
  • Employees who have worked between one and three years have to give two weeks’ notice.
  • Employees who have worked between three and five years have to give three weeks’ notice.
  • Employees who have worked more than five years have to give four weeks’ notice.

Further Useful Information

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.