What the world needs to know about payroll srvices Australia. 

By Julius Milnes Aug23,2021
payroll services

With the recent global financial crisis, most companies are trying to redeem themselves by finding new grasps and expansions in different places were the situation was not so felt. Payroll services Australia are some of these human resources companies.  

An Overview  about payroll srvices Australia. 

Australia’s unemployment rate has lowered, they are now rated the 7th highest lifestyle in the world and 15th as a country to better accept new foreign businesses. Yet, it is not easy. As if with any kind of moving between borders, Australia has its own filing, payroll and tax requirements that any business must come across with if they want their settling to be successful. One of your first decisions should be if to establish your company as a foreign branch or under an Australian holding company. It really depends on how you want to work with the taxing. A foreign branch will not have to pay taxes (in some cases), while you will have to pay the necessary Australian taxes with a holding company.  

Types of Taxes  

You must secure an Australian business number, a tax file number, register for the ‘Goods and Services tax’, GAST, and ‘Pay As You Go’, PAYG, withholding tax. These vary depending on the state and territory. The GST is broad tax of 10% that goes on most consumed goods including services. The GST is included in the price but the company must account and send it in a quarter return. The PAYG, similar to those required in other countries, is a withholding depending on the employee’s pay. The income tax year in Australia starts in July 1st or June 30th.The FBT, Fringe Benefit Tax, which is the provided if your company gives other non-income benefits such as car, insurance or entertainment.  


When it comes to employment, the Australian government would prefer that your payroll services companies hire native citizens. Now, if you want to bring someone from overseas, it would be a much-complicated process which includes ‘sponsoring’, acquiring many skills that are shortened in Australia and then there is the process of visa granting for a residency. The process of employment contracts is not always required in Australia, but when choosing to do them, it should include the conditions, provisions, clauses, responsibilities, leaves and breaks. You should know also of the ten national employment standards and the enterprise bargaining agreements. They are ever changing, so be up to date. Failure to comply with these can result in heavy penalties. For those over the age of 21, the minimum wage is $13.74 in AU.

How do Payroll services work in Australia

Employees should work 38 hours a week, but it can be changed to the better wishes of the employer and the employee. Companies must also contribute a 9% of salary to the employee’s retirement funds. Both those of full time and part time have chances for a four-week paid leave depending on their working hours. There is also a ten-paid leave for sick or days were the employee is not present without a valid excuse. Some agreements can be made to give them more than what the government specifies. Concerning maternity or paternity leave, it’s always changing at the parent’s favor. If they are primary carriers, they are allowed a minimal of 18 weeks paid leave. Employees can request to be unpaid. All transactions must be recorded and shown to the employee on a quarterly basis. It is more enforced by law and if not done by an electronic report (Super Stream), can also result in heavy penalties.  


It’s relatively simple but complex when it comes to the employee’s benefits, especially when it has to be constantly reported to different parties. Outsourcing your payroll can prove more beneficial for your time and accuracy.  



Related Post