6 MIN READ
UPDATED JUL 6, 2026💡 Everything you need to know to hire and manage employees in Australia through Toku. Toku handles payroll processing, tax withholding, superannuation, and statutory compliance. This guide covers what you need to plan costs and manage your team.
At a Glance
| Item | Detail |
|---|---|
| Currency | Australian Dollar (AUD) |
| Payroll cycle | Monthly. Toku runs one payroll per month in Australia. |
| Estimated employer costs on top of salary | ~13-15% (superannuation, payroll tax, workers' comp) |
| Standard working week | 38 hours |
| Probation period | 6 months (per Toku's employment agreement) |
| Annual leave | 4 weeks |
| 13th month salary | Not required |
| Minimum notice on termination | 1 to 4 weeks (service-based) |
| Fiscal year | 1 July to 30 June |
Onboarding a New Hire
Plan for 3-5 business days between submitting a new hire and their start date. Before Day 1, the employee completes a Tax File Number (TFN) declaration and superannuation choice form, and must be registered with the ATO before their first pay cycle. Toku handles the registrations; you just need to submit the hire in time.
Submit your new hire through the Toku platform and we take it from there: local employment agreement, statutory registrations, and payroll setup. See Onboard Contributors as a Client Admin in Toku for the step-by-step process, and the Country Readiness Live Tracker for lead times across all countries.
Employer Costs
When you hire in Australia, budget for these mandatory costs on top of gross salary:
| Cost | Rate | Notes |
|---|---|---|
| Superannuation Guarantee (retirement) | 12% of ordinary time earnings | Capped at earnings of AUD 270,830/year; paid each payday |
| Payroll tax | ~4.75-6.85% | Varies by state; applies above state wage thresholds |
| Workers' compensation insurance | ~1.2-2.0% | Varies by state and industry risk |
Rule of thumb: total cost of employment is roughly 113-115% of gross salary. There is no 13th or 14th month salary requirement, and wages must be paid in AUD.
Employees additionally pay income tax (0-45% progressive) and a 2% Medicare levy through payroll withholding. These come out of gross salary, not on top of it. Toku calculates and remits all of the above.
Compensation & Payroll
Toku runs payroll in Australia once per month. Employees receive a payslip each cycle showing gross, net, deductions, and superannuation.
The national minimum wage (from 1 July 2026) is AUD 26.44/hour (AUD 1,004.90/week full-time). Most roles are covered by an industry "Modern Award" that sets higher minimums by classification.
Employment Contracts & Probation
- Toku issues a compliant local employment agreement for every hire.
- Employment types: permanent full-time, permanent part-time, and casual (casuals get a 25% pay loading instead of paid leave).
- Fixed-term contracts are generally capped at 2 years or two renewals.
- Probation is 6 calendar months under Toku's standard employment agreement. During probation, employment can be ended with 1 week's notice.
Working Hours
The standard week is 38 hours. Additional hours must be reasonable, and employees may refuse unreasonable requests. Overtime and weekend rates depend on the applicable Modern Award: commonly 150% for early overtime and Saturdays, 200% for Sundays, 250% on public holidays. Australia also has a Right to Disconnect: employees may refuse to monitor or respond to work contact outside working hours unless refusal is unreasonable.
Leave Entitlements
| Leave | Entitlement | Who pays |
|---|---|---|
| Annual leave | 4 weeks/year, accrues progressively and carries over | Employer |
| Personal/carer's (sick) leave | 10 days/year, cumulative | Employer |
| Compassionate leave | 2 days per occasion | Employer |
| Parental leave | 26 weeks paid at minimum wage (government-funded) plus up to 12 months unpaid job-protected leave | Government |
| Family & domestic violence leave | 10 days/year | Employer |
| Long service leave | ~8.67 weeks after 10 years (varies by state) | Employer |
Parental leave is paid by the government, not by you, though many employers choose to top it up as a competitive benefit.
Public Holidays (2026)
Australia has 8 national public holidays; states add several more (e.g., King's Birthday, local show days).
| Date | Holiday |
|---|---|
| 1 January | New Year's Day |
| 26 January | Australia Day |
| 3 April | Good Friday |
| 4 April | Easter Saturday |
| 6 April | Easter Monday |
| 25 April | Anzac Day |
| 25 December | Christmas Day |
| 26 December | Boxing Day |
Employees who work a public holiday are typically entitled to penalty rates (commonly 250%).
Benefits: Required vs. Common Extras
Statutory (included in employer costs above): superannuation, Medicare (public healthcare via taxes), workers' compensation, and all leave entitlements listed above.
Supplemental healthcare through Toku: Toku offers a fully sponsored Bupa supplemental health plan in Australia covering private healthcare, dental, optical, and allied health services. See Australia Supplemental Healthcare for coverage details and enrollment.
Other common extras clients offer: salary sacrifice arrangements (extra super, novated car leases), employee assistance programs, professional development budgets, and flexible working. Note that non-cash benefits may attract Fringe Benefits Tax (47%). Toku can advise on the cost impact before you commit to a benefit.
Ending Employment
Termination must not be harsh, unjust, or unreasonable. Australia has strong unfair-dismissal protections, so involve Toku early when considering a termination. For the process, see How to Terminate an Employee or Contractor.
Minimum notice (by service):
| Service | Notice |
|---|---|
| Up to 1 year | 1 week |
| 1-3 years | 2 weeks |
| 3-5 years | 3 weeks |
| 5+ years | 4 weeks |
Employees aged 45+ with 2+ years of service get one extra week. Redundancy pay applies when a role is genuinely eliminated: from 4 weeks (1-2 years of service) up to 16 weeks (9-10 years). Dismissal without notice is only permitted for serious misconduct.
Hiring Someone from Overseas?
Non-residents need a visa with work rights (main route: Skills in Demand subclass 482). New Zealand citizens can work automatically. Talk to Toku before extending an offer to a candidate who needs sponsorship. Timelines range from weeks to months.
Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.