General Overview

Australia is a high-income, mixed-market economy with strong service, mining, and agricultural sectors. Its stable political environment and transparent regulatory framework make it a popular destination for both domestic and foreign investment.

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Employment Contracts

Types: Can be fixed-term or permanent (indefinite).

Form: While not all contracts must be written, a written agreement is highly recommended to set out duties, pay, hours, leave entitlements, and termination conditions.

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Probation Period

Commonly set at 3–6 months, but may be shorter or longer if agreed in the contract.

During probation, either party can terminate with the notice period specified in the contract (often 1–2 weeks).

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Working Hours

Standard: 38 hours per week (full-time).

Overtime: Only with employee agreement; paid at penalty rates if specified in an award or agreement.

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Vacation Days

Annual Leave: 4 weeks (20 days) of paid leave per year. Shift workers may accrue 5 weeks under certain awards.

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Sick Leave

Personal/Carer’s Leave: 10 days per year, accruing monthly.

Unpaid Leave: Eligible after exhausting paid leave or for compassionate reasons.

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Wages and Salary Payment

Minimum Wage is $24.10 per hour or $915.90 per week.‍

‍Casual Loading: Casual employees receive an extra 25%, equating to $30.13 per hour.

Pay Schedule: Employers must pay at least monthly, by the agreed date.

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Public Holidays

Australia recognises 10 national public holidays (states/territories may add more). Key days include:

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• New Year’s Day (1 Jan)
• Australia Day (26 Jan)
• Good Friday & Easter Monday (movable)
• ANZAC Day (25 Apr)
• Queen’s Birthday (varies by state)
• Christmas Day (25 Dec)
• Boxing Day (26 Dec)

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If a holiday falls on a weekend, a substitute weekday is usually observed.

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Employer Taxes

• Superannuation Guarantee: Employers must contribute 11.5% of an employee’s ordinary time earnings for the 2024–25 year.

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• Payroll Tax: Varies by state (applied to wages above a threshold).

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Employee Taxes

Income Tax:

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• $0 – $18,200: 0%
• $18,201 – $45,000: 16%
• $45,001 – $135,000: 30%
• $135,001 – $190,000: 37%
• $190,001+: 45%

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Medicare Levy: 2% of taxable income.

Other Deductions: PAYG withholding, possible HELP/HECS repayments.

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Notice Period

Minimum (Fair Work Act):

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• <1 year service: 1 week’s notice.
• 1–3 years: 2 weeks.
• 3–5 years: 3 weeks.
• >5 years: 4 weeks.

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Longer periods may apply by contract or award.

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Termination and Severance Pay

Unfair Dismissal Protections apply to employees with ≥6 months’ service (or ≥12 months in small businesses).

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Severance (Redundancy Pay) under the National Employment Standards:

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• 1 year: 4 weeks’ pay
• 2 years: 6 weeks’ pay
• 3 years: 7 weeks’ pay
• 4 years: 8 weeks’ pay
• 5 years: 10 weeks’ pay
• 6 years: 11 weeks’ pay
• 7 years: 13 weeks’ pay
• 8 years: 14 weeks’ pay
• 9 years: 16 weeks’ pay
• 10 years: 12 weeks’ pay