Employer of record in Australia: costs, super and rules
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An Australian employee's on-costs start at 12% of salary for the superannuation guarantee and reach 18.10% once New South Wales payroll tax at 5.45% is counted, using Australian Taxation Office and state revenue office rates (checked October 16, 2026). EOR providers' own monthly charge runs from $199 (Payoneer Workforce Management, formerly Skuad) to $699 (Oyster), going by pricing pages checked October 16, 2026. The change that trips up overseas employers this year is Payday Super: since July 1, 2026, super has to be paid alongside every pay run instead of quarterly.
An employer of record in Australia is an Australian company that employs your worker on its own payroll, pays their super and state payroll tax and withholds PAYG income tax, while you direct the work day to day.
- Employer cost on a sample salary
- 12.00% super only; 18.10%…on top of gross pay
- Currency
- AUD
On this page
Super, payroll tax and the Fair Work rules
Australia has no employer social security tax in the US sense. The cost sits in three places instead.
- Superannuation guarantee: 12% of ordinary time earnings since July 1, 2025, and it stays at 12%. For 2025-26 the maximum contribution base was AUD 62,500 a quarter (AUD 7,500 of super). Under Payday Super the ATO shows an annual base of AUD 270,830.
- State payroll tax: charged on the employer's total wages above a threshold. NSW 5.45% over AUD 1.2 million, Victoria 4.85% over AUD 1 million, Queensland 4.75% over AUD 1.3 million, Western Australia 5.5% over AUD 1 million. Most EORs' group payroll is above these thresholds, so expect it on your invoice from the first hire.
- Workers compensation: a premium under each state scheme, priced by industry. We do not price it here.
- Minimum wage: AUD 26.44 an hour, AUD 1,004.90 a week, from July 1, 2026 (Fair Work Commission decision [2026] FWCFB 3500); modern award minimums rose 4.75%.
- Notice (Fair Work Act s117): 1 week up to 1 year of service, 2 weeks for 1 to 3 years, 3 weeks for 3 to 5, 4 weeks over 5, plus 1 week for employees over 45 with 2 or more years.
We have not yet confirmed from an official source the National Employment Standards on annual leave, redundancy pay, public holidays and the unfair dismissal qualifying period. The Fair Work Ombudsman publishes them; get your EOR's figures in writing.
Employment costs and rules in Australia
| Item | Australia |
|---|---|
| Employer social contributions | 12% superannuation guarantee; plus state payroll tax (4.75% to 6.85%+) once wages pass the state threshold, plus workers comp; 18.10% at sample with NSW payroll tax |
| What the employer pays | Super guarantee 12% of ordinary time earnings (from July 1 2025, stays 12%); state/territory payroll tax above annual threshold: NSW 5.45% over AUD 1.2M; VIC 4.85% over AUD 1M (regional 1.2125%); QLD 4.75% (4.95% over AUD 6.5M) over AUD 1.3M plus mental health levy over AUD 10M; WA 5.5% over AUD 1M; SA up to 4.95% over AUD 1.5M; TAS 4% from AUD 1.25M to 2M, 6.1% above; ACT 6.75% to 8.75% tiers over AUD 1.75M; NT 5.5% over AUD 2.5M (6.5% for groups with Australia-wide wages of AUD 100M+ from July 1 2026); workers comp premium per state scheme (not priced) |
| Caps and ceilings | Maximum super contribution base 2025-26: AUD 62,500 per quarter (max SG AUD 7,500 per quarter). From July 1 2026 Payday Super applies and the ATO shows an annual base of AUD 270,830 |
| Employee contributions | 0% social security; income tax (PAYG) withheld; Medicare levy is collected through tax |
| Minimum wage | National minimum wage AUD 26.44 per hour, AUD 1,004.90 per week from July 1, 2026 ([2026] FWCFB 3500, June 2 2026); modern award minimums up 4.75% |
| Mandatory bonuses | None statutory |
| Notice period | Fair Work Act s117: 1 week (up to 1 year service), 2 weeks (1 to 3 years), 3 weeks (3 to 5 years), 4 weeks (over 5 years); plus 1 week if over 45 with 2+ years service |
| Sample salary used | AUD 57,482 (super on top) |
| Employer cost on that salary | 12.00% super only; 18.10% with NSW payroll tax |
Checked October 16, 2026. Source type: official. Sources are listed at the end of this page.
What an EOR charges to employ someone in Australia
| Provider | EOR fee per employee per month | Deposit | Entity model (provider claim) |
|---|---|---|---|
| Payoneer Workforce Management | from $199 | None listed | Claims owned entities across APAC, MEA, Europe and the Americas |
| Pebl | $399 | Not listed | About 90% of employees on Pebl-owned entities |
| Playroll | from $399 | One month's salary per employee, refundable | No clear owned-entity claim |
| Rivermate | $319 to $639 | Not stated | Claims 38 owned entities |
| Multiplier | $459 (annual) or $499 (monthly) | Sized from costs, fees and notice period (method published, no fixed amount) | Claims owned entities in 160+ countries |
| Rippling EOR | Quote only (third-party reference: $499) | Not listed | Claims Rippling entities; no partner mention |
| Deel | $599 | Not stated by Deel | Claims owned entities in 130+ countries |
| Remote | from $599 | Waived for startups; otherwise not stated | Claims 100% owned entities in 90+ countries |
| Atlas | from $599 | Not published | Claims owned entities in 160+ countries |
| Papaya Global | from $650 | Refundable deposit, amount not stated | Uses in-country partners |
| Oyster | $699 | At least one month of total service cost, refundable (per its terms) | Owned entities and partners |
| Globalization Partners (G-P) | Quote only | Not stated | Information page claims 100+ wholly owned entities |
Source: each provider’s pricing page, checked October 16, 2026. Fees are the provider’s charge on top of salary and the employer contributions above. Some providers adjust prices by country.
What an AUD 57,482 employee costs in a year
| Line | Per month | Per year |
|---|---|---|
| Salary | AUD 4,790.17 | AUD 57,482.00 |
| Super guarantee, 12% | AUD 574.82 | AUD 6,897.84 |
| NSW payroll tax, 5.45% of salary plus super | AUD 292.39 | AUD 3,508.70 |
| Employer on-costs (18.10%) | AUD 867.21 | AUD 10,406.54 |
| EOR fee at $599 | AUD 860.79 | AUD 10,329.52 |
| All-in cost | AUD 6,518.17 | AUD 78,218.06 |
Super: ATO. Payroll tax: payrolltax.gov.au, page updated Oct 13, 2026. Provider fee: $599 (Deel, Remote) converted at the same AUD 57,482 per USD 40,000 used for pay. Checked Oct 2026.
Super is 0.12 of AUD 57,482, or AUD 6,897.84. Payroll tax is charged on salary and super together, AUD 64,379.84, at 5.45%, giving AUD 3,508.70. The two lines sum to AUD 10,406.54, 18.10% of pay. A year of $599 fees, $7,188, is AUD 10,329.52 at 1.43705 Australian dollars per US dollar. A Melbourne hire would use Victoria's 4.85% instead, and every state adds a workers compensation premium we have not priced.
An Australian entity or an EOR
An Australian subsidiary registers for PAYG withholding, pays super with each pay run, and only owes payroll tax once its own wages pass the state threshold. A small local team would often sit below it, while most EORs' pooled payroll is above it. That difference, plus $7,188 a year per person in fees, drives the EOR versus entity decision.
Hiring Australian contractors
An Australian contractor quoting through their own ABN takes care of their own tax and super. When the arrangement is employment in practice, the unpaid 12% super is the first liability to land. For project-based work, compare contractor management tools, or let a contractor of record carry the classification risk.
Picking an EOR provider in Australia
| Provider | Our score | EOR fee per month | Contract term |
|---|---|---|---|
| Multiplier | $459 (annual) or $499 (monthly) | No minimum term; 30 days to process a termination | |
| Oyster | $699 | No minimum term; 30 days' notice | |
| Remote | from $599 ($699 in a March 2026 help article) | 12-month default term that auto-renews; pay-as-you-go offered | |
| Playroll | from $399 | No minimum term listed | |
| Deel | $599 | Month-to-month, but promo order forms need 2 years |
Scores by HRPricing, October 17, 2026; prices and contract terms from provider pages, October 16, 2026.
Two checks for an Australian quote: super must go out with each pay run under Payday Super, and payroll tax and workers compensation should appear as their own lines, not inside one statutory figure. Our EOR ranking covers the rest of the field under our scoring method; contract details are in the Remote review and Deel review, and the cost index sets Australia beside other countries.
Frequently asked questions
What will an employer of record in Australia charge?
What is the superannuation guarantee rate in 2026?
Does an EOR in Australia pay payroll tax?
What is the minimum wage in Australia?
How much notice does an Australian employee get?
Sources (11)
- Pebl: Pebl EOR pricing (checked Oct 16, 2026)
- Playroll: Playroll pricing (checked Oct 16, 2026)
- Multiplier: Multiplier pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Oyster: Oyster pricing (checked Oct 16, 2026)
- Payoneer Workforce Management (formerly Skuad): Skuad pricing (checked Oct 16, 2026)
- ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresho... (checked October 16, 2026)
- payrolltax.gov.au/node/4 (checked October 16, 2026)
- fwc.gov.au/documents/decisionssigned/pdf/2026fwcfb3500.pdf (checked October 16, 2026)
- classic.austlii.edu.au/au/legis/cth/consol_act/fwa2009114/s117.html (checked October 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.