How to Hire in Australia in 2026: Super Every Payday, Tax by State
Since 1 July 2026, 12% superannuation has to reach the fund within 7 business days of every payday. We priced an A$120,000 offer, read the payroll tax table for all eight jurisdictions, checked provider sites for entity claims and worked four exit scenarios.
Five figures to settle before you write the offer
Four ways an Australian offer gets mispriced
Three of these come from rules that changed between July 2025 and July 2026. The fourth is a threshold that decides whether payroll tax appears in your budget at all.
Pricing super at 11.5%
The rate rose to 12% on 1 July 2025. On A$120,000 that is A$14,400 against A$13,800, so the old figure undercounts by A$600 a year for each employee.
Adding payroll tax from the first hire
Payroll tax starts only above each jurisdiction’s threshold on total Australia-wide wages, from A$1M to A$2.5M. Five staff on A$120,000 carry A$672,000 of wages including super, so the line is zero.
Ignoring the yearly contribution cap on high earners
From 1 July 2026 the base is a yearly A$270,830, so the most super owed per employee is about A$32,500. The old quarterly base of A$62,500 capped it at A$30,000.
Paying super in a quarterly batch
Payday Super began on 1 July 2026 and the ATO’s small business clearing house has closed. A quarterly batch is late on most payments, though the ATO applies a risk-based approach to 30 June 2027 under PCG 2026/1.
Rates and thresholds as in force on 31 October 2026. Sources: ATO, official payroll tax table.
The same A$120,000 offer under the old and new super rate
The rate went from 11.5% to 12% on 1 July 2025. Payday Super then changed when the money moves.
Offer written for 2024-25
11.5% superOffer written today
12% superWhen we priced the same offer at both rates, the gap was A$600 a year. The cap moved too. A top earner’s maximum super rose from A$30,000 under the old quarterly base to A$32,499.60 under the A$270,830 yearly base.
Assumes A$120,000 of ordinary time earnings, below the contribution cap. 11.5% applied from 1 July 2024 to 30 June 2025 and 12% from 1 July 2025. Source: ATO, base last updated 3 June 2026.
What an A$120,000 hire costs through an EOR in year one
Three published fee levels from the ranking, from the lowest to the highest.
Not in these totals: deposits, setup and exit fees, workers’ compensation premiums and award loadings. Long service leave accrues by state and isn’t included either (8.667 weeks after 10 years in New South Wales, Queensland, Western Australia and Tasmania). An EOR’s own payroll normally sits above the state thresholds, so payroll tax and workers’ compensation are usually passed through to you. The calculator adds both by state. Check each provider’s terms on the EOR ranking page.
Fees are the starting price per employee a month from the HR Stacks EOR ranking, 31 October 2026. Fees are billed in USD, so the totals stay in two currencies.
Run your own salary through the Australian numbers
Australia is already selected. Pick a state, enter the monthly gross salary and add an EOR fee to see what the employer pays in total.
Where payroll tax starts, state by state
The table shows the headcount, at A$120,000 plus 12% super each, at which a team first crosses the threshold.
Reading all eight official entries showed how much sits behind a headline rate. Victoria’s threshold phases out between A$3M and A$5M of wages, South Australia phases its rate in from A$1.5M to A$1.7M, and the ACT climbs to 8.75% in its top band.
Rates and thresholds from 1 July 2026, from the official payroll tax table last updated 28 October 2026. Wages include super. Employers with other Australian staff count all Australia-wide wages together.
How many staff before your own Australian company is cheaper
Using one provider’s published Australian estimate for setup, running cost and the EOR fee per worker.
Scale: A$190,000. Deel’s published Australian estimate: A$72,027 one-off, A$75,411 a year to run and A$11,065 per EOR worker a year. Running cost passes the EOR bill at 6.8 staff, so 7. Year one (A$147,438) passes it at 13.3, so 14.
Using the provider’s own published costs, the switch comes at about 7 staff on running cost and 14 in year one. That estimate comes from an EOR vendor, so it leans toward the EOR. Our itemised low case, from ASIC fees and service-provider prices, is A$1,536 to set up and A$9,092 a year to hold, before GST, payroll, accounting and HR administration.
The low case is a floor, not a forecast. It counts the ASIC registration and annual review fees, a resident director service, a registered agent and ongoing ASIC and ATO compliance. The truth for most teams sits between the two sets of numbers.
A company also needs a director who lives in Australia (Corporations Act s201A), and a foreign parent should take tax advice on permanent establishment risk before staff report into a local entity. Most teams start on an EOR and move people across once the numbers turn.
Which EOR providers say they hold an Australian entity
An EOR with its own entity employs your person directly. We read provider sites on 31 October 2026 and counted only what each one says about Australia.
Not confirmed yet
Use a local partner
No provider site we read states a partner for Australia.
Remote’s Australia page says it owns its legal entity there, and Deel’s own blog describes a wholly owned Australian entity. RemoFirst’s pricing page confirms $199 a month but describes its partner model in general terms, with nothing specific to Australia. We read three provider sites and haven’t checked the other nine.
Lowest published fee in the ranking. Its pricing page doesn’t say whether Australia runs through its own entity or a partner.
Describes a wholly owned Australian entity on its own blog.
Its Australia page says it owns its legal entity there and lists EOR from $599.
The fee shown is a promotion. Its standard fee runs from $599 to $660.
Ranks and labels come from the HR Stacks EOR ranking. RemoFirst’s and Remote’s fees were checked on their own sites on 31 October 2026. Deel’s and Pebl’s come from the ranking.
See all 12 ranked providersWhat ending an A$120,000 role costs by length of service
Notice and redundancy pay under the National Employment Standards, at A$2,307.69 a week.
Worked through, a 9.5-year employee costs A$46,154 to make redundant and a 12-year employee costs A$36,923. The scale peaks at 16 weeks for 9 to 10 years of service, then drops to 12 weeks from 10 years.
Check before you count on these. Add a week of notice for employees aged 45 or over with 2 or more years of service. Employers with fewer than 15 employees are generally exempt from redundancy pay, and casuals are excluded. Most awards require final pay within 7 days of the last day. Unused annual leave and long service leave are paid on top.
Source: National Employment Standards (Fair Work Act s117 and s119), Fair Work Ombudsman. Unfair dismissal high income threshold from 1 July 2026: A$190,100, with a compensation cap of A$95,050.
Five questions that decide contractor status, and the visa floor
Do you decide when, where and how they do the work?
Yes adds riskIs their work part of how your business runs, with a title and team?
Yes adds riskAre they barred from sending someone else to do the job?
Yes adds riskAre they paid for hours worked, not for a result?
Yes adds riskDo you supply the tools and carry the cost if the work goes wrong?
Yes adds riskWe found two pairs of 1 July 2026 visa thresholds in circulation, A$79,499 with A$146,717 and A$79,423 with A$146,576. The Home Affairs page wouldn’t load for us, so the card shows the later pair. Check the official figure before you issue an offer.
The test is the whole relationship. Since 26 August 2024, Fair Work Act s15AA looks at how the arrangement works in practice, not only at the contract. Calling an employee a contractor is sham contracting under s357.
Where to go next once the numbers work
How we built this guide and when we recheck it
Co-founder and Editor, HR Stacks
Manjuri runs the editorial process behind our provider reviews and country hiring guides. She has more than ten years of editorial experience, the last five spent on employer of record and global employment.
More from Manjuri- Worked the figures. We priced an A$120,000 offer at 11.5% and 12% super in Python and applied the A$270,830 yearly contribution base.
- Read the rates at source. Super from the ATO, payroll tax from the official table for all eight jurisdictions, and notice, redundancy and wages from the Fair Work Ombudsman and Fair Work Commission.
- Checked providers on 31 October 2026. We read three provider sites for an Australian entity claim and left the other nine marked as not confirmed.
- Worked the exits and the break-even. Four tenures priced to a dollar figure, and a break-even at 7 and 14 staff from published costs.
- Set a recheck date. We recheck each July, when super, wage, payroll tax and visa figures reset, and sooner if the ATO or Fair Work Commission changes a rule.
Questions employers ask before hiring in Australia
How do I hire an employee in Australia without a local company?
What is the superannuation rate in Australia in 2026?
When must employers pay super under Payday Super?
Do foreign employers pay payroll tax in Australia?
What is the minimum wage in Australia in 2026?
How much notice and redundancy pay must I give?
Do I need a resident director to set up a company in Australia?
How many employees before my own entity beats an EOR?
Price your Australian hire against 12 EOR providers
Compare fees, entity claims and reviews before you issue the offer.