Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
AUD $ (Australian Dollar)
Employer contributions
11.5% Superannuation Guarantee (2025-26)
Minimum wage
AUD 24.10/hour (National Minimum Wage 2025-26)
Payment frequency
Monthly
July 1 - June 30 (fiscal year)
Capital
Canberra
Timezone
AEST (GMT+10)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~AUD 8,920 total
/month
For a gross salary of
AUD 8,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
11.5% Superannuation Guarantee (2025-26)
Mandatory extras
Annual Bonus / Discretionary
Monthly admin
Monthly payroll - PAYG withholding - quarterly Super by 28th - Single Touch Payroll (STP) each pay event
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~AUD 8,920 total
Example gross salary
AUD 8,000 gross/month
~AUD 5,560 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~AUD 920 Super
Employer contributions on that salary
Employer contributions
11.5% Superannuation Guarantee (2025-26)
Employee contributions
Medicare Levy 2% + income tax
Total cost above gross
~11% above gross (Super)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~AUD 8,167
Per month
Sydney
AUD 9,000 - 18,000
~30%
Melbourne
AUD 8,500 - 16,000
~20%
Monthly gross. National average salary per year:
~AUD 98,000
Minimum wage
AUD 24.10/hour (National Minimum Wage 2025-26)
Paid:
Hourly
Extra pay
Annual Bonus / Discretionary
Discretionary, common in finance and tech
December/January
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0% up to AUD 18,200 / 19% / 32.5% / 37% / 45%
Tax year:
July 1 - June 30 (fiscal year)
Filing calendar
Quarterly Super by 28th of month after quarter
Social security payments
October 31 (individual tax return)
Income tax
Via myTax by August 14
Employee tax certificate
Payment Summary / Income Statement
October 31
Annual return
Individual Tax Return
Late payment penalties
Late Super: 11.5% Superannuation Guarantee Charge + interest + admin fee; late PAYG: GIC rate ~7%
Who collects what
ATO (Australian Taxation Office)
Income tax and PAYG
Fair Work Commission
Modern Award and enterprise agreement compliance
APRA / ATO Superannuation
Superannuation fund regulation
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
4 weeks (20 days)
Public holidays
~9 public holidays (varies by state)
Sick leave
Personal / Carer's Leave
10 days paid personal leave per year from employer
Maternity leave
18 weeks (government paid parental leave)
Minimum wage via Services Australia; employer may top up
The contracts you can use, and what ending an employment relationship costs.
Permanent
Permanent Employment Contract
Fixed term
Fixed-Term Contract
Independent contractor
Sole Trader / Independent Contractor
Collective agreements
Enterprise Agreement / Modern Award
Ending employment
Redundancy Pay
How it is calculated
1-4 weeks per year of service depending on tenure
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Superannuation Non-Payment or Under-Payment
Risk Level: HIGH
Employers must pay 11.5% Superannuation Guarantee (SG) quarterly by the 28th of the month following each quarter end. Late or underpaid super attracts the SGC (Superannuation Guarantee Charge) which is non-deductible, includes a 10% penalty and nominal interest. The ATO's Single Touch Payroll (STP) system now flags non-payment automatically.
Modern Award Misclassification
Risk Level: HIGH
Australia has over 120 Modern Awards covering specific industries. Applying the wrong award - or missing an award entirely - means underpaying minimum rates, penalty rates, and allowances. Fair Work Ombudsman audits frequently result in back-pay orders plus 60-penalty-unit fines per contravention.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.