Australia has a skilled, English-speaking workforce in Sydney, Melbourne, Brisbane and Perth, and a time zone that overlaps with Asia. It is also one of the more regulated places to employ: employers pay superannuation (a mandatory retirement contribution of 12%), state payroll tax and workers' compensation insurance, and many roles are covered by modern awards that set minimum pay and conditions.
An Employer of Record (EOR) can employ your hire under an Australian contract and run payroll, PAYG withholding and super through the ATO's systems, so you don't need to register an Australian company first.
This guide covers costs, the National Employment Standards, the labour hire rules that can affect EOR arrangements, provider comparison and when to set up your own Pty Ltd. Our editor is based in Sydney. Figures link to official sources. We do not test or use the providers listed; see our methodology.
An Employer of Record is a company with an Australian entity that employs staff on behalf of foreign businesses. It issues the employment contract, withholds income tax under PAYG, pays the superannuation guarantee into the employee's fund, reports each pay run through Single Touch Payroll, holds workers' compensation insurance, applies any modern award that covers the role, and handles leave and terminations under the Fair Work Act.
You direct the employee's work; the EOR carries the formal employer obligations and invoices you monthly.
Because your business directs the work while the EOR is the employer, the arrangement can look like labour hire. Queensland, Victoria, South Australia and the ACT require labour hire providers to hold a licence, and the Fair Work Commission can make 'same job, same pay' orders for labour hire workers in some cases.
Australian employment cost has three layers: gross salary, employer on-costs (superannuation, payroll tax and workers' compensation) and the EOR fee.
Salaries are usually quoted excluding super ('base' or 'plus super'). Some offers quote a 'package' that includes super, so check which applies before you compare.
Annual cost at example salaries
| Annual cost | Junior / support | Mid-level professional | Senior professional | Lead / manager |
|---|---|---|---|---|
| Gross salary (annual) | A$75,000 | A$110,000 | A$150,000 | A$220,000 |
| Paid as 12 payments of | A$6,250 | A$9,167 | A$12,500 | A$18,333 |
| Superannuation guarantee[1]12% of gross, up to A$270,830 | A$9,000 | A$13,200 | A$18,000 | A$26,400 |
| State payroll tax (NSW)[12]5.45% of gross | A$4,088 | A$5,995 | A$8,175 | A$11,990 |
| Workers' compensation insurance (Business services nec)[15]0.77% of gross | A$578 | A$847 | A$1,155 | A$1,694 |
| Total employment cost | A$88,665 | A$130,042 | A$177,330 | A$260,084 |
| EOR feeVerifyA$910 / month | A$10,920 | A$10,920 | A$10,920 | A$10,920 |
| Total annual cost via EOR | A$99,585 | A$140,962 | A$188,250 | A$271,004 |
| Multiple of gross salary | 1.33× | 1.28× | 1.25× | 1.23× |
What these figures include and exclude
- Payroll tax is shown at the New South Wales rate. Pick another state or territory in the estimator, which shows each one's rate and threshold. Victoria and Queensland add levies for payrolls over A$10m, and the ACT's rate rises in steps for very large payrolls.
- Workers' compensation varies by state and industry. In NSW, 2026–27 industry rates for office and professional work run from 0.218% (computer consultancy) to 0.77% (business services nec); manual industries are far higher.
- Income tax (PAYG withholding) and the Medicare levy are deducted from the employee's pay and are not employer costs.
- Fringe benefits tax applies if you provide non-cash benefits such as a car or private health insurance.
- Long service leave (state-based, typically after 7–10 years) and redundancy pay are contingent costs not included above.
Estimate your own cost
Enter a salary to see the estimated annual cost, including mandatory employer contributions and an EOR fee. Change the fee to match the quotes you receive.
Australia employment cost estimator
Estimated total annual cost
A$140,962
≈ A$11,747 per month on average · 1.28× gross salary
- Gross salary
- A$110,000
- Superannuation guarantee12%
- A$13,200
- State payroll tax (NSW)5.45%
- A$5,995
- Workers' compensation insurance (Business services nec)0.77%
- A$847
- Employer costs subtotal
- A$20,042 (18.2%)
- EOR fee (12 months)
- A$10,920
- Total
- A$140,962
First year
- First-year cost
- A$140,962
- Refundable deposit1 mo
- A$10,837
- Cash needed in year one
- A$151,799
Estimate only. Percentage costs are applied to total annual gross pay, up to any contribution ceiling. Real payroll uses specific bases, and collective agreements may add costs. Employee social security and income tax are deducted from gross pay and are not employer costs.
Compliance
Key Australia employment rules
Most private-sector employees are covered by the federal Fair Work Act. The National Employment Standards set the minimums, and a modern award or enterprise agreement can add more. Key rules below.
- National Employment Standards
Eleven minimum entitlements apply to all employees in the national system, covering hours, leave, notice, redundancy and flexible work requests.[4]Verify
- Modern awards
A modern award sets minimum pay rates and conditions, such as penalty rates, allowances, hours, breaks, rosters and overtime, on top of the NES. Coverage depends on the employer's industry, the employee's occupation, or both; industry awards are checked first. Awards don't apply where an enterprise agreement is in place, and an employment contract can't provide less than the award.[6]
- Working hours
Maximum of 38 ordinary hours a week, plus reasonable additional hours.[4]
- Annual leave
Four weeks of paid annual leave a year for full-time and part-time employees, paid at the base rate for ordinary hours; five weeks for employees defined as shiftworkers. Untaken leave is paid out on termination.[7]
- Personal / carer's leave
Ten days of paid sick and carer's leave a year for full-time employees (pro rata for part-time: 1/26 of ordinary hours). It accrues from the first day and unused leave carries over to the next year.[5]
- Notice of termination
Minimum employer notice under the NES: 1 week (1 year's service or less), 2 weeks (over 1 to 3 years), 3 weeks (over 3 to 5 years), 4 weeks (over 5 years), plus an extra week for employees over 45 with at least 2 years' continuous service. It can be worked or paid in lieu, applies during probation too, and isn't required for serious misconduct.[8]
- Redundancy pay
NES redundancy pay at base rate: 4 weeks (1–2 years' service), 6 (2–3), 7 (3–4), 8 (4–5), 10 (5–6), 11 (6–7), 13 (7–8), 14 (8–9), 16 weeks (9–10 years), falling to 12 weeks from 10 years. Paid on top of notice and unused leave. Some awards set their own scheme, and some employers and employees are exempt.[10]
- Unfair dismissal
Employees can claim unfair dismissal after 6 months' employment (12 months with a small business of fewer than 15 employees), if covered by an award or enterprise agreement or earning less than the high income threshold. Claims go to the Fair Work Commission within 21 days, which can order reinstatement or compensation.[9]
- Superannuation timing
From 1 July 2026, 'Payday Super' requires employers to pay super for each payday rather than quarterly, calculated on 'qualifying earnings'. The rate is still 12%, and the Small Business Superannuation Clearing House has closed.[2]
- Paid parental leave
Government-funded Parental Leave Pay, based on the national minimum wage: A$200.94 a day (A$1,004.70 per 5-day week) in 2026–27. Families get up to 130 days (26 weeks) for children born or adopted from 1 July 2026, with 20 days reserved for a partner. For births from 1 July 2025 the ATO also pays a super contribution on it.[19]
- Labour hire licensing (Queensland)
Every labour hire provider operating in Queensland must be licensed, and users may only use a licensed provider. The definition is broad: supplying a worker to another business to do work while being obliged to pay them. Exempt workers include high income employees earning over A$190,100 a year (from 1 July 2026) who aren't covered by an award or agreement, supply within a corporate group, secondments, and a lone executive officer.[17]
- Labour hire licensing (Victoria)
Labour hire providers in Victoria must hold a licence, comply with specified laws and standards, and be run by appropriate people. Under section 7 of the Labour Hire Licensing Act 2018, a provider is a business with an arrangement wholly or principally for the supply of labour, where it is obliged to pay the worker directly or through intermediaries, so a typical EOR arrangement can fall within it. Stronger rules from 1 June 2026 add a tougher 'fit and proper person' test for anyone controlling the business, a wider compliance history check and a financial viability declaration. Maximum penalties exceed A$660,000 per breach for a company and A$160,000 for an individual.[18]
- Labour hire licensing (SA and ACT)
South Australia and the ACT also run labour hire licensing schemes. Check the rules in the state or territory where your employee will work.[18]Verify
Providers
EOR providers in Australia compared
These EOR providers publish information about employing in Australia. Prices are their own published starting rates in USD, from our pricing tracker. Quote-only providers are marked.
In Australia, ask whether the provider employs through its own Australian entity, whether it holds labour hire licences in the states where your staff will work, and how it handles payroll tax and super.
| Provider | Published EOR price | Delivery model in Australia | Notes | Visit |
|---|---|---|---|---|
| Deel | From US$599per employee / monthVerify | Confirm with provider | Broad product suite; add-ons priced separately. | Visit |
| Remote | From US$699per employee / monthVerify | Owned entities (provider's stated model) | Published price per employee per month. | Visit |
| Oyster | From US$699per employee / monthVerify | Confirm with provider | Published EOR price per employee per month. | Visit |
| Multiplier | From US$459per employee / monthVerify | Confirm with provider | Asia-Pacific focus; Core plan, billed annually. | Visit |
| Playroll | From US$399per employee / monthVerify | Confirm with provider | Low published starting price; also shows prices in AUD. | Visit |
| RemoFirst | From US$199per employee / monthVerify | Confirm with provider | Lowest published starting price; ask what it includes in Australia. | Visit |
| Rippling | Quote-basedVerify | Confirm with provider | Best fit when already using Rippling HR/payroll. | Visit |
- DeelFrom US$599Verify
- Delivery model:
- Confirm with provider
- Notes
- Broad product suite; add-ons priced separately.
- RemoteFrom US$699Verify
- Delivery model:
- Owned entities (provider's stated model)
- Notes
- Published price per employee per month.
- OysterFrom US$699Verify
- Delivery model:
- Confirm with provider
- Notes
- Published EOR price per employee per month.
- MultiplierFrom US$459Verify
- Delivery model:
- Confirm with provider
- Notes
- Asia-Pacific focus; Core plan, billed annually.
- PlayrollFrom US$399Verify
- Delivery model:
- Confirm with provider
- Notes
- Low published starting price; also shows prices in AUD.
- RemoFirstFrom US$199Verify
- Delivery model:
- Confirm with provider
- Notes
- Lowest published starting price; ask what it includes in Australia.
- RipplingQuote-basedVerify
- Delivery model:
- Confirm with provider
- Notes
- Best fit when already using Rippling HR/payroll.
For Australia-specific selection criteria and a shortlist, see best EOR providers in Australia. For each provider's products and pricing model, see the provider directory.
The usual alternative is a proprietary limited company (Pty Ltd) registered with ASIC. It needs at least one director who ordinarily lives in Australia, a registered office and an Australian Business Number (ABN). A foreign company can instead register an Australian branch, which needs a local agent.
Ongoing costs include an accountant, payroll, ASIC annual review fees, company tax returns (25% for base rate entities, 30% otherwise), and registrations for PAYG withholding, GST, payroll tax (once over the state threshold) and workers' compensation.
| Factor | Employer of Record | Australian Pty Ltd |
|---|---|---|
| Time to first hire | Typically days to two weeks | Several weeks (ASIC, ABN/TFN, bank, insurances) |
| Upfront cost | Refundable deposit | Registration and advisory fees; resident director arrangements |
| Ongoing fixed cost | None; scales per employee | Accountant, payroll, ASIC fees, insurances, resident director |
| Legal employer | The EOR | Your Pty Ltd |
| Can invoice local customers | No | Yes |
| Corporate tax exposure | Lower, but permanent establishment risk depends on employee activities | Australian company tax |
| Exit | Terminate employment; end service agreement | Terminations plus deregistration |
An EOR usually fits when…
- You're hiring one to a few people in Australia
- You want someone to start quickly while you test the market
- You don't have an Australian-resident director
A Australian Pty Ltd usually fits when…
- You plan a team of three to five or more
- You'll sell to Australian customers and need to invoice locally
- You want your own award, payroll and super arrangements
For a step-by-step version of this calculation, see EOR vs local entity: a break-even framework.
- 1
Define the role and salaryDay 0
Agree an annual salary (and whether it's quoted plus super), the work state, and check whether a modern award covers the role.
- 2
Compare itemised quotes1–3 days
Request Australia quotes covering the fee, deposit, payroll tax, workers' compensation and offboarding. Use the estimator to sanity-check totals.
- 3
Sign the service agreement
Review liability for termination costs, IP assignment, privacy terms and the provider's labour hire licence status.
- 4
Contract and onboarding2–5 days
The EOR issues an Australian contract and the Fair Work Information Statement. The employee provides a TFN declaration, super choice form and bank details.
- 5
Payroll set-up
The EOR adds the employee to payroll, reports through Single Touch Payroll and pays super to the chosen fund.
- 6
Ongoing administrationEach pay run
Each pay run: PAYG withholding, super and STP reporting. Monthly or annual payroll tax returns and workers' compensation declarations.
How much does it cost to employ someone in Australia through an EOR?
What is the superannuation guarantee rate?
Is using an EOR legal in Australia?
Does an EOR pay payroll tax?
When should I set up a Pty Ltd instead?
Sources
Official resources
Rates and rules on this page are based on the following official sources. Numbers in brackets in the tables above link to these entries.
- 1Super guarantee rates and the maximum contribution base
Australian Taxation Office
Super guarantee of 12% from 1 July 2025 onwards; maximum contribution base of A$270,830 a year for 2026–27 (annual from 1 July 2026).
- 2Payday Super
Australian Taxation Office
From 1 July 2026, super is paid for each payday on qualifying earnings; the rate is still 12%.
- 3Minimum wages
Fair Work Ombudsman
National minimum wage of A$26.44 an hour (A$1,004.90 a week) from 1 July 2026, and award minimum rates.
- 4National Employment Standards
Fair Work Ombudsman
Hours, leave, notice, redundancy and other minimum entitlements.
- 5Paid sick and carer's leave
Fair Work Ombudsman
10 days a year for full-time employees, pro rata for part-time, accumulating from year to year.
- 6About awards
Fair Work Ombudsman
What awards contain, how industry and occupational coverage works, and how awards relate to agreements and contracts.
- 7Annual leave and the National Employment Standards (fact sheet)
Fair Work Ombudsman
4 weeks' paid annual leave (5 for shiftworkers), payment at the base rate, leave loading under awards and agreements, and payout on termination.
- 8Dismissal: minimum notice period
Fair Work Ombudsman
NES minimum notice of 1–4 weeks by length of service, plus a week for employees over 45 with 2 years' service.
- 9Unfair dismissal
Fair Work Ombudsman
Eligibility (6 or 12 months' service, award coverage or the high income threshold) and the 21-day deadline.
- 10Redundancy pay
Fair Work Ombudsman
NES redundancy pay scale (4–16 weeks by service), what it is paid on, and award-specific schemes.
- 11
- 12Payroll tax rates and thresholds
State and territory revenue offices (payrolltax.gov.au)
Rates, thresholds and deduction entitlements for every state and territory.
- 13Payroll tax rates and thresholds
Queensland Revenue Office
4.75% (4.95% over A$6.5m) above a A$1.3m threshold, regional discount and mental health levy.
- 14Payroll tax
State Revenue Office Victoria
Victoria: 4.85% above A$1m (regional 1.2125%), plus surcharges over A$10m and A$100m.
- 15NSW workers compensation industry classification (WIC) rates and dust disease contributions 2026–27
icare NSW
Industry premium rates for 2026–27, e.g. 0.218% for computer consultancy and 0.77% for business services nec.
- 16Workers' compensation
Safe Work Australia
How workers' compensation schemes work in each state and territory.
- 17Labour hire licensing
Queensland Government
Who needs a Queensland labour hire licence, what isn't labour hire, and exempt workers including the A$190,100 high income exemption (from 1 July 2026).
- 18Labour hire law changes 2026
Labour Hire Authority (Victoria)
Victorian licensing requirements, the stronger obligations from 1 June 2026 and maximum penalties (over A$660,000 for a company).
- 19Parental Leave Pay
Services Australia
Rates (A$200.94 a day in 2026–27), up to 130 days for births from 1 July 2026, partner days and the super contribution.
- 20
Australia is a high-salary market with moderate on-costs. Through an EOR, plan for roughly 1.2–1.35× gross salary in total, with super the largest single on-cost.
The Australia-specific risks are about structure, not cost: check labour hire licensing in Queensland, Victoria, South Australia and the ACT, confirm award coverage, and make sure super is paid with each pay run from July 2026.
If you're building a local team or selling to Australian customers, compare an EOR against a Pty Ltd early with our EOR vs local entity guide. For the region, see the Philippines and India.
Ready to compare providers?
Review published pricing and fit signals side by side, then request itemised Australia quotes from two or three providers.
Related research
- Cost to hire in AustraliaEmployer costs at four salary levels, explained line by line.
- EOR in the PhilippinesLower-cost Asia-Pacific hub in a nearby time zone.
- EOR in the UKCompare another English-speaking market.
- EOR vs contractorsSham contracting and misclassification risk.
- EOR provider directoryPublished pricing, products and fit signals.