A country with a strong and diverse economy, Australia boasts plenty of opportunities for businesses to succeed. However, it is crucial to understand the legal and regulatory requirements for your business to run compliantly.
Our Australia Hiring Guide covers key topics such as work permits, working hours, statutory paid annual leaves, discrimination laws and more. Take a read through our detailed guide and keep tabs on the latest labour law updates to get you started on building a successful business in Australia!
Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Australia’s employment laws and regulations, please visit the official governmental websites.
Australia implemented some key changes as of 1 July 2023:
Australia has several work permits catered for applicants from various skillsets and industries. Below is the complete list found on the Australian immigration website.
Visa | Description |
---|---|
Business Innovation and Investment (permanent) visa (subclass 888) | For entrepreneurs, investors, and business owners to continue their activity in Australia |
Business Innovation and Investment (provisional) visa (subclass 188) | Allows visa holders to own and manage a business, conduct business and investment activity, or undertake an entrepreneurial activity in Australia |
Business Owner (subclass 90) | For those who want to own and manage a business in Australia. It allows visa holders to live in Australia on a permanent basis |
Global Talent Visa (subclass 858) | Permanent visa for people who have an internationally recognised record of exceptional and outstanding achievement in an eligible field |
Employer Nomination Scheme (subclass 186) | Allows skilled workers, who are nominated by their employer, live and work in Australia permanently |
Investor visa (subclass 891) | For those who want to conduct business and investment activities in Australia. It allows visa holders to live in Australia permanently |
Permanent Residence (Skilled Regional) visa (subclass 191) | Allows workers who have a valid visa and meet an income requirement to live and work in Australia permanently. It comes in two streams – the regional provisional stream (for those who have lived and worked in regional areas of Australia) and the Hong Kong stream (for Hong Kong or British National (Overseas) passport holders who have shown commitment to Australia) |
Regional Sponsored Migration Scheme (subclass 187) | Allows skilled workers who are nominated by their employer in regional Australia to permanently live and work in Australia |
Skilled Employer Sponsored Regional (provisional) visa (subclass 494) | Allows regional employers to sponsor and hire skilled workers to address labour shortages where employers are unable to source appropriately skilled Australian workers |
Skilled Nominated visa (subclass 190) | Allows skilled workers who have been nominated to live and work in Australia as permanent residents |
Skilled-Recognised Graduate visa (subclass 476) | Allows recent engineering graduates to live, work or study in Australia for up to 18 months. Applicants must have completed a degree or received a higher qualification from a specified institution within the last 2 years and be under 31 years of age |
Skilled Regional (provisional) visa (subclass 489) | Allows skilled workers to live and work in regional Australia. Successful applicants can bring their families to live with them and may later be eligible to apply for the Skilled Regional (Permanent) visa (subclass 887) |
Skilled Regional visa (subclass 887) | For people who have lived and worked in specified areas of regional Australia on a previous, eligible visa |
Skilled Work Regional (Provisional) visa (subclass 491) | For skilled workers who have been nominated by a state or territory government to live and work in regional Australia |
State or Territory Sponsored Business Owner visa (subclass 892) | For those who own and manage a business in Australia. Visa holders can stay in Australia indefinitely. To apply as a primary applicant, you must have a qualifying visa granted on a particular basis |
State or Territory Sponsored Investor visa (subclass 893) | Permanent resident visa for subclass State/Territory Sponsored Investor (Provisional) visa (subclass 165) holders and who have held a designated investment of AUD750,000 for 4 years |
Temporary Activity visa (subclass 408) | Allows visa holders to do specific types of work on a short-term, temporary basis in Australia such as for government-endorsed events, sports, and religious work. |
Temporary Graduate visa (subclass 485) | Temporary visa that allows international students to live, study and work after finishing their studies |
Temporary Work (International Relations) visa (subclass 403) | Temporary visa to work in specific circumstances that improve Australia’s international relations |
Temporary Work (Short Stay Specialist) visa (subclass 400) | Can be granted for up to 6 months. Applicants must possess highly specialised skills, knowledge or experience that can help Australian businesses and can’t reasonably be found in Australia |
Temporary Skill Shortage visa (subclass 482) | Allows an employer to sponsor a suitably skilled worker to fill a position that they can’t find a suitably skilled Australian to fill |
Residents will need to declare income they earn all over the world, while non-residents only have to declare income earned in Australia. The income tax rates for 2022-2023 for both residents and non-residents are as follows:
Residents
Taxable income | Tax on this income |
---|---|
0 – $18,200 | Nil |
$18,201 – $45,000 | 19 cents for each $ over $18,200 |
$45,000 – $120,000 | $5,092 plus 32.5 cents for each $ over $45,000 |
$120,001 – $180,000 | $29,467 plus 37 cents for each $ over $120,000 |
$180,001 and over | $51,667 plus 45 cents for each $ over $180,000 |
Source: Australian Taxation Office
Non-residents
Taxable income | Tax on this income |
---|---|
0 – $120,000 | 32.5 cents for each $1 |
$120,001 – $180,000 | $39,000 plus 37 cents for each $1 over $120,000 |
$180,001 and over | $61,200 plus 45 cents for each $ over $180,000 |
Source: Australian Taxation Office
In terms of bonuses, the law does not make it compulsory for employers to give them any. However, if an employment contract states that bonuses will be given each year, employees may have a right to claim the bonus payment.
The laws against discrimination listed above do not only apply during employment, but even for job advertisements and during the recruitment and selection process.
The Australian Human Rights Commission Act 1986 lists out the Australian Human Rights Commission (AHRC)’s roles and responsibilities in ensuring compliance with the laws above. The AHRC is a statutory authority that is tasked with investigating complaints on discrimination and human rights breaches.
Note: The laws mentioned above are federal-level laws. Each territory/region may have their own laws that overlap with federal laws.
In terms of entitlement, employees who are on probation must be treated the same way as employees who are not. Employees who are hired on a full-time or part-time basis are to be given access to annual leave and sick leave even while on probation.
In the case an employee does not pass probation, they are still entitled to receive notice when the employment ends and receive payment for unused annual leave.
For more information, refer to the ‘Relevant Links’ section below.
Some of the payments listed may be included in the lump-sum payment mentioned above and therefore may be taxed.
In the case of redundancy, an employee who has worked for at least a year for a company that has 15 or more employees may be entitled to a redundancy/severance payment of 16 weeks’ salary.
Starting from 1 July 2023, the Age Pension age will be 67 years for those born on or after 1 January 1957.
Retirees will also be able to access their superannuation – known as ‘super’ – which is a retirement pension benefits fund that employers contribute to. Retirees must also reach their ‘preservation age’ to be able to get their ‘super’ funds.
Super Guarantee Percentage:
Period | General super guarantee (%) | Super guarantee (%) for Norfolk Island (transitional rate) (from 1 July 2016) |
---|---|---|
1 July 2002 – 30 June 2013 | 9.00 | 0 |
1 July 2013 – 30 June 2014 | 9.25 | 0 |
1 July 2014 – 30 June 2015 | 9.50 | 0 |
1 July 2015 – 30 June 2016 | 9.50 | 0 |
1 July 2016 – 30 June 2017 | 9.50 | 1 |
1 July 2017 – 30 June 2018 | 9.50 | 2 |
1 July 2018 – 30 June 2019 | 9.50 | 3 |
1 July 2019 – 30 June 2020 | 9.50 | 4 |
1 July 2020 – 30 June 2021 | 9.50 | 5 |
1 July 2021 – 30 June 2022 | 10.00 | 6 |
1 July 2022 – 30 June 2023 | 10.50 | 7 |
1 July 2023 – 30 June 2024 | 11.008 | 8 |
1 July 2024 – 30 June 2025 | 11.50 | 9 |
1 July 2025 – 30 June 2026 | 12.00 | 10 |
1 July 2026 – 30 June 2027 | 12.00 | 11 |
1 July 2027 – 30 June 2028 and onwards | 12.00 | 12 |
Source: Australian Government – Australian Taxation Office
Parental Leave Pay for a child born or adopted before 1 July 2023
Parental Leave Pay for a child born or adopted from 1 July 2023
The Dad and Partner Pay system will be changing effective 1 July 2023. For children born or adopted from that date onwards, fathers may be able to claim Parental Leave Pay (similar to mothers). The eligibility requirements will also be similar.
For employees that are hired under an industrial agreement:
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Canberra Day | 13 March |
Good Friday | 7 April |
Easter Saturday | 8 April |
Easter Sunday | 9 April |
Easter Monday | 10 April |
Anzac Day | 25 April |
Reconciliation Day | 29 May |
King’s Birthday | 12 June |
Labour Day | 2 October |
Christmas Day | 25 December |
Boxing Day | 26 December |
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Good Friday | 7 April |
Easter Saturday | 8 April |
Easter Sunday | 9 April |
Easter Monday | 10 April |
Anzac Day | 25 April |
King’s Birthday | 12 June |
Labour Day | 2 October |
Christmas Day | 25 December |
Boxing Day | 26 December |
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Good Friday | 7 April |
Easter Saturday | 8 April |
Easter Sunday | 9 April |
Easter Monday | 10 April |
Anzac Day | 25 April |
May Day | 1 May |
King’s Birthday | 12 June |
Picnic Day | 7 August |
Christmas Eve | 24 Dec (part-day holiday: 7pm to midnight) |
Christmas Day | 25 December |
Boxing Day | 26 December |
New Year’s Eve | 31 Dec (part-day holiday: 7pm to midnight) |
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Good Friday | 7 April |
Easter Saturday | 8 April |
Easter Sunday | 9 April |
Easter Monday | 10 April |
Anzac Day | 25 April |
Labour Day | 1 May |
Royal Queensland Show (only for Brisbane) | 16 August |
King’s Birthday | 2 October |
Christmas Eve | 24 December (part-day holiday: 6pm to midnight) |
Christmas Day | 25 December |
Boxing Day | 26 December |
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Adelaide Cup Day (subject to proclamation) | 13 March |
Good Friday | 7 April |
Easter Saturday | 8 April |
Easter Sunday | 9 April |
Easter Monday | 10 April |
Anzac Day | 25 April |
King’s Birthday | 12 June |
Labour Day | 2 October |
Christmas Eve | 24 Dec (part-day holiday: 7pm to midnight) |
Christmas Day | 25 December |
Boxing Day | 26 December |
New Year’s Eve | 31 Dec (part-day holiday: 7pm to midnight) |
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Eight Hours Day | 13 March |
Good Friday | 7 April |
Easter Monday | 10 April |
Easter Tuesday | 11 April |
Anzac Day | 25 April |
King’s Birthday | 12 June |
Christmas Day | 25 December |
Boxing Day | 26 December |
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Labour Day | 13 March |
Good Friday | 7 April |
Easter Saturday | 8 April |
Easter Sunday | 9 April |
Easter Monday | 10 April |
Anzac Day | 25 April |
King’s Birthday | 12 June |
Friday Before AFL Grand Final | [TBC] September |
Melbourne Cup | 7 November |
Christmas Day | 25 December |
Boxing Day | 26 December |
Holiday | Date |
---|---|
New Year’s Day | 1 & 2 January |
Australia Day | 26 January |
Labour Day | 6 March |
Good Friday | 7 April |
Easter Sunday | 9 April |
Easter Monday | 10 April |
Anzac Day | 25 April |
Western Australia Day | 5 June |
King’s Birthday | 25 September |
Christmas Day | 25 December |
Boxing Day | 26 December |
For a complete list of regional holidays within each state, refer to the ‘Reference Links’ section below.
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*Please note that all the information listed above are to be used as a general guideline. For more detailed accounts of Australia’s employment laws and regulations, please visit the official governmental websites.
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