This article explains how payroll works for employees engaged in Australia through RemoFirst, covering pay schedules, deductions, superannuation, leave, working time and end-of-employment entitlements. Australia has strong employment protections governed by the Fair Work Act, and employees are entitled to statutory leave, superannuation contributions and public holiday protections.
If you have a question that is not answered below, contact RemoFirst support and the team will be happy to help.
Payroll Schedule in Australia
How often are employees paid in Australia?
RemoFirst supports the following pay frequencies in Australia:
- Monthly
- Semi-monthly
When are employees paid in Australia?
On the monthly payroll, employees are paid on the last working day of the month. On semi-monthly payroll, employees are paid mid-month and at month-end.
What is the payroll cut-off date in Australia?
The payroll cut-off in Australia is the 7th of each month. The new joiner cut-off is the 20th of each month.
What currency are employees paid in Australia?
Employees in Australia are paid in Australian Dollars (AUD).
Payslips in Australia
When are Australian payslips issued?
Payslips in Australia are generally available 1 to 2 days after the salary payment.
What deductions appear on an Australian payslip?
Common deductions on an Australian payslip include:
- PAYG Income Tax
- Medicare Levy
- Salary sacrifice deductions, if applicable
- Other approved deductions
Superannuation is generally paid by the employer and is not deducted from the employee's salary.
Salary Structure in Australia
How many salary payments are made each year in Australia?
Employees in Australia receive 12 monthly salary payments. Australia does not have a statutory 13th month salary.
What is Superannuation in Australia?
Superannuation is Australia's mandatory retirement savings contribution. The current employer contribution is 12% of Ordinary Time Earnings, which has been the rate since 1 July 2025. This is the final legislated rate, with no further increases currently scheduled.
Is Superannuation deducted from salary in Australia?
No. Superannuation in Australia is generally paid on top of the employee's base salary, unless otherwise specified in the compensation agreement.
Salary Proration in Australia
Why was my first salary in Australia lower than expected?
Employees who join mid-month in Australia receive a prorated salary for that first period.
How is proration calculated in Australia?
Proration in Australia is calculated as:
Prorated Salary = Monthly Salary × (Days Worked ÷ Days in Month)
Superannuation is then calculated on the prorated earnings.
Tax and Government Contributions in Australia
Updated for 1 July 2026: From 1 July 2026, the lowest income tax rate drops from 16% to 15%, employers must pay superannuation each payday rather than quarterly (Payday Super), and government Paid Parental Leave increases to 26 weeks. These changes are reflected below.
What taxes apply to employees in Australia?
Employees in Australia pay PAYG Income Tax and the Medicare Levy.
What is the Medicare Levy in Australia?
Most Australian tax residents pay a Medicare Levy of 2% of taxable income. Low-income exemptions may apply.
What income tax rates apply in Australia?
Australia uses a progressive income tax system based on annual earnings, and payroll calculates tax automatically using Australian Taxation Office (ATO) rules. From 1 July 2026, the lowest marginal rate, which applies to taxable income between $18,201 and $45,000, reduces from 16% to 15%. A further reduction to 14% is legislated for 1 July 2027.
Superannuation in Australia
Who is eligible for Superannuation in Australia?
Superannuation eligibility in Australia generally covers:
- All employees aged 18 and over
- Employees under 18 working more than 30 hours per week
Can employees choose their Super Fund in Australia?
Yes. Employees in Australia may nominate their preferred superannuation provider.
Are temporary visa holders eligible for Superannuation in Australia?
Yes. Most temporary visa holders in Australia are eligible for employer superannuation contributions.
How often is Superannuation paid in Australia?
From 1 July 2026, under the Payday Super reform, employers must pay superannuation at the same time as wages, with contributions reaching the employee's fund within seven business days of each payday. Before this date, super was required to be paid at least quarterly.
Public Holidays in Australia
How many public holidays are there in Australia?
Australia observes national public holidays plus additional state-specific public holidays, so the exact number depends on the employee's state or territory.
What happens if an employee works on a public holiday in Australia?
Additional penalty rates may apply when an employee works on a public holiday in Australia. A typical public holiday rate is 250% of normal pay, though the actual entitlement depends on the applicable Modern Award or Enterprise Agreement and employment conditions.
Annual Leave in Australia
What annual leave entitlement applies in Australia?
Full-time employees in Australia receive 4 weeks of annual leave per year, equivalent to 20 working days annually.
How does annual leave accrue in Australia?
Annual leave in Australia accrues progressively throughout employment, at a typical rate of around 1.6667 days per month.
Can unused annual leave be paid out in Australia?
Yes. Unused annual leave in Australia is generally paid out upon termination.
Sick Leave in Australia
What sick leave entitlement applies in Australia?
Full-time employees in Australia receive 10 paid sick and carer's leave days annually.
Is medical evidence required for sick leave in Australia?
The employer in Australia may request a medical certificate or a statutory declaration.
Is sick leave paid out on termination in Australia?
No. Unused sick leave in Australia is generally forfeited upon termination.
Maternity and Parental Leave in Australia
What unpaid parental leave applies in Australia?
Eligible employees in Australia may take up to 12 months of unpaid parental leave, with the option to request an additional 12 months, for up to 24 months in total. This unpaid leave is job-protected under the National Employment Standards.
Is paid parental leave available in Australia?
Yes. The Australian Government provides Parental Leave Pay at the national minimum wage. For children born or adopted before 1 July 2026, this is 24 weeks (120 days). For children born or adopted from 1 July 2026, it increases to 26 weeks (130 days). Since 1 July 2025, the Government also pays 12% superannuation on top of Parental Leave Pay, paid by the ATO after the end of the financial year.
How is parental leave shared between partners in Australia?
Parental Leave Pay in Australia is a single scheme that both parents can access and share. For couples, a portion is reserved for each parent on a "use it or lose it" basis. From 1 July 2026, 20 days (around 4 weeks) are reserved for the second parent. Single parents can access the full entitlement.
Working Hours in Australia
What are standard working hours in Australia?
Full-time employees in Australia work 38 hours per week.
What overtime rates apply in Australia?
Common overtime rates in Australia are 150% for the initial overtime hours and 200% thereafter. Actual rates depend on the applicable Modern Award or Enterprise Agreement.
What Sunday rates apply in Australia?
A typical Sunday rate in Australia is 200%, though the actual rate depends on the applicable Modern Award or Enterprise Agreement.
Expenses and Reimbursements in Australia
How are reimbursements processed in Australia?
Approved expenses in Australia may be reimbursed through payroll or through separate payment processes.
Are receipts required in Australia?
Yes. For an expense claim in Australia, employees should provide a receipt or invoice, a business justification and supporting documentation.
Are reimbursements taxable in Australia?
Business reimbursements supported by receipts are generally non-taxable in Australia.
Probation in Australia
What probation periods are supported in Australia?
Typical probation periods in Australia are 3 months or 6 months. Separately from any contractual probation, unfair dismissal protection under the Fair Work Act generally begins after a minimum employment period of 6 months, or 12 months for a small business with fewer than 15 employees.
Do employees receive statutory benefits during probation in Australia?
Yes. During probation in Australia, employees continue to receive leave accrual, public holiday entitlement, superannuation and minimum wage protections.
Employment Changes in Australia
What employment changes commonly require documentation in Australia?
Examples of changes in Australia that commonly require documentation include:
- Salary increases
- Position changes
- Working hours changes
- Contract extensions
- Contract conversions
Can fixed-term contracts be extended in Australia?
Yes, subject to Australian fixed-term contract rules. Generally, a fixed-term contract has a maximum total duration of 2 years, and only one extension is permitted, unless a statutory exception applies.
Resignation in Australia
What notice period applies when resigning in Australia?
During probation in Australia, the notice period is typically 1 week. After probation, it is usually 2 to 4 weeks, depending on the contract terms.
What is included in final pay in Australia?
Final pay in Australia may include:
- Outstanding salary
- Accrued annual leave
- Approved reimbursements
- Other contractual entitlements
Is a Separation Certificate provided in Australia?
Yes, a Separation Certificate is provided in Australia if requested by the employee. It is commonly needed to support a Centrelink claim.
Termination in Australia
Can employees be terminated without cause in Australia?
Yes, but procedural fairness requirements generally apply in Australia.
What notice periods apply on termination in Australia?
Minimum notice periods in Australia depend on length of service:
- Less than 1 year: 1 week
- 1 to 3 years: 2 weeks
- 3 to 5 years: 3 weeks
- 5 or more years: 4 weeks
An additional week of notice applies for employees over 45 years old with at least 2 years of continuous service.
Is severance always required in Australia?
No. Redundancy pay in Australia applies only in qualifying redundancy situations. Where it applies, the National Employment Standards set redundancy pay on a sliding scale by length of service, for example:
- 1 to 2 years: 4 weeks
- 2 to 3 years: 6 weeks
- 3 to 4 years: 7 weeks
- 4 to 5 years: 8 weeks
- 5 to 6 years: 10 weeks
- 6 to 7 years: 11 weeks
- 7 to 8 years: 13 weeks
- 8 to 9 years: 14 weeks
- 9 to 10 years: 16 weeks
- 10 or more years: 12 weeks
The entitlement reduces at 10 or more years because long service leave generally becomes payable. Small business employers with fewer than 15 employees are generally exempt from redundancy pay.
For any payroll question about Australia not answered above, contact RemoFirst support and the team will be glad to help.
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