PEO Australia

Professional Employer Organization (PEO)

Employer of Record (EOR) | Remote Work

peo australia

World Bank Ease of Doing Business Ranking

  • DB Rank – 14
  • DB Score – 81.2

Rankings on Doing Business topics – Australia

Rankings on Doing Business topics – Australia

Topic Scores

topic scores australia

Global PEO in Australia

Australia is an attractive destination for PEO (Professional Employer Organization) services due to its thriving economy, diverse business landscape, and strong commitment to employee welfare. As a PEO country, Australia offers numerous benefits to international businesses seeking to expand their operations without establishing a legal entity. Through PEO, companies can access a skilled and talented workforce while minimizing the complexities of employment regulations, payroll processing, and HR administration. Additionally, Australia’s stable political environment, well-developed infrastructure, and competitive business environment make it an ideal choice for companies looking to tap into the Asia-Pacific region. With its PEO services, Australia presents a seamless and efficient solution for global businesses seeking to navigate the complexities of international expansion while ensuring compliance and strategic growth.

What Is a PEO?

A PEO, or Professional Employer Organization, is a company that provides a range of HR and payroll services to small and medium-sized businesses. These services can include employee benefits, payroll, compliance with labor laws, and recruiting and training.

PEOs work by entering into a co-employment agreement with the businesses they serve. In this arrangement, the PEO becomes the employer of record for the business’s employees, taking on responsibilities such as payroll, tax withholding, and employee benefits. The business, however, retains control over its day-to-day operations and the supervision of its employees.

PEOs can help businesses streamline their HR and payroll processes, reduce costs, and free up time and resources to focus on their core business activities. They can also provide access to a range of benefits and resources that small businesses may not be able to afford or manage on their own.

PEOs are also understood as employer of record / EOR at times.

Australia – Country Overview

Australia is the sixth-largest country globally and is known as the “island continent” as it is relatively isolated from the rest of the world. Australia’s economy emerged from the 2009 recession with minimal damage and has consistently ranked among the affluent nations in terms of per capita income.

Capital City



Australian Dollar (A$)

Principal Language



Federal Parliamentary Democracy

Employment Contracts in Australia

In Australia, an employment contract can be either in writing or verbal. 

An employment contract must meet the legal minimum set out in the National Employment Standards (NES) or in any awards, enterprise agreements, or other registered agreements that may apply. Thus, irrespective of whether they have signed a contract, all employees are covered by the NES. 

A typical written employment contract in Australia includes: 

  • The type of employment 
  • Working hours 
  • Entitlements 
  • and more 

The different types of employment relationships are: 

  • Permanent Employment – Permanent employees in Australia are employed on an ongoing basis until the employment agreement is abolished by either the employer or the employee. Permanent employees can work full-time or part-time, depending on their schedule. Permanent employees are entitled to a variety of benefits. 
  • Fixed-Term Contracts – A fixed-term contract is for a specific duration of employment, and the employees can usually work full-time or part-time. Whether full-time or part-time, fixed-term employees are generally entitled to the same wages, penalties, and leave as permanent employees. 
  • Temporary Employment– Casual employees are temporary employees in Australia. A casual employee is someone who accepts a job offer from an employer knowing that there is no firm advance commitment to continuing work with an agreed-upon structure of work. They can terminate employment without notice unless a registered agreement, award, or employment contract requires it. 

Probationary Period 

At the onset of employment, employers determine the length of the probationary period, which can vary from a few weeks to a few months. 

Working Hours in Australia

In Australia, the average workweek is 38 hours. Awards, certified agreements, and Australian Workplace Agreements typically include regular working hours, rest breaks, overtime, and penalty rates.

Holidays in Australia

Employees in Australia are entitled to the following leaves: 

  • Annual leave in Australia – Full-time and part-time employees in Australia are entitled to at least four weeks of paid annual leave. Shift workers are entitled to 5 weeks of paid vacation every year. Casual employees are not permitted to take annual leave. 
  • Maternity leave in Australia – Female employees may begin their break up to 6 weeks before the expected delivery date. 
  • Sick leave in Australia – Sick and carer’s leave are part of one entitlement in Australia. Full-time employees are entitled to ten days of vacation per year.  
  • Paternity leave in Australia – Also known as Dad and Partner Pay, is provided to eligible employees in Australia for two weeks. Employees may be eligible for up to 18 weeks of paid parental leave if they meet specific qualifications. 

The following are the statutory national holidays in Australia: 

  • January 1 – New Year’s Day 
  • January 26 – Australia Day 
  • April 2 – Good Friday 
  • April 5 – Easter Monday 
  • April 25 – ANZAC Day 
  • December 25 – Christmas Day 
  • December 26 – Boxing Day 

Paid time off

  • All employees must receive a minimum of four weeks’ leave, which often rolls over year on year. 
  • All employees also receive 10 days’ sick/carer’s leave. 
  • Public holidays vary from state to state, but on average there are ten days per year where employees are not required to work. 


Tax and employer contributions

  • Employers must contribute 9.5% of the employee’s salary to their retirement fund, which is called superannuation.
  • Payroll taxes vary between Australian states.
  • Australia operates under a Pay as You Go tax system. Employers withhold the required tax amount from their employees’ paychecks, which are then paid directly to the government. 
  • Companies are required to present employees with their payslip within one working day of getting paid.

Employee Termination in Australia

Employers in Australia are required to provide employees with the following notice periods based on their continuous service: 

  • Employment of 1 year or less – 1 week 
  • Employment of 1 to 3 years – 2 weeks 
  • Employment of 3 and 5 years – 3 weeks 
  • Employment of more than 5 years – 4 weeks 

Employees over 45 who have worked with the same employer for at least two years are entitled to an extra week of notice. 

Global Mobility in Australia

There are typically the following categories of visas in Australia: 

  • Visitor visas 
  • Studying and training visas 
  • Family and partner visas 
  • Working and skilled visas 
  • Refugee and humanitarian visas 
  • Other visas 

Generally, there are two types of work permits in Australia:  

  • Temporary work visas – Temporary work visas usually require skilled workers where employers cannot find an adequately skilled Australian worker and allow for up to four years of stay. 
  • Permanent work visas – Employers typically nominate permanent work visas, which can be regional or allow for work anywhere in Australia. 

Employee Benefits in Australia

The retirement income system in Australia consists of three parts: 

  • A means-tested Age Pension supported by public tax money. 
  • Compulsory employer contributions to private superannuation funds provide a superannuation guarantee. 
  • Voluntary pension contributions and other personal savings; retirement savings are encouraged by tax reductions. 

State benefits granted to residents of Australia are called social security (welfare) in Australia. Social security is a non-contributory scheme funded through general taxes (although there is a specific fee for Medicare). 

The core beneficiaries of social security are the elderly and disabled, single parents, families with children, unemployed people, and people who are sick or have a specific need. 

Some examples of social insurance programs in Australia are: 

  • Dependents’/Survivors Benefit– Widow Allowance is a means-tested benefit that is paid every two weeks in Australia. On July 1, 2018, Widow Allowance was closed to new applicants, and it will be phased off entirely on January 1, 2022. Family tax benefit legislation may also provide further aid to families. 
  • Life and Disability Insurance/Benefit – The Australian Social Security System provides disability payments in the form of the Disability Support Pension to persons under retirement whose income has fallen below the cut-off limit, which varies depending on age and family status to a chronic disability. Basic pension, mobility allowance, medical aid, and other benefits are available. 

The following are examples of other statutory benefits: 

  • Unemployment 
  • Birth Allowance 
  • Child Allowance 

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