Payroll
Jul 5, 2026•7 min read
Australia payday Super 2026
[Australia] Payday Super Now in Force: Employers Must Pay Super Every Payday Home / News / Australia / Payday Super Australia · Pension · Payroll Tech...
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Editorial Team
Global HR Experts
Economic Overview, FinTech Hubs & Global Resources
Australia boasts a AAA sovereign credit rating and a vibrant tech startup and enterprise ecosystem (Atlassian, Canva, Afterpay) alongside world-dominant mining and agricultural export capabilities.
Key Commercial Sectors
- Software & Technology: Cloud architecture, cybersecurity, fintech, and digital health in Sydney and Melbourne.
- Mining & Critical Minerals: Global leadership in iron ore, lithium, gold, bauxite, and clean energy minerals.
- Banking & Wealth Management: World's 4th largest pension/superannuation asset pool ($3.5+ trillion AUD).
Employment Contracts, Fair Work Act & Modern Awards
Employment is governed by the Fair Work Act 2009 and the National Employment Standards (NES).
- Modern Awards: Legally binding industry/occupation awards set minimum pay rates, penalty rates, overtime, and allowances.
- Contract Types: Permanent Full-Time (38h/wk), Permanent Part-Time (pro-rata), and Casual (paid a 25% casual loading in lieu of paid leave).
- Probation Period: Typically 6 months (aligned with the Fair Work Minimum Employment Period for unfair dismissal protection).
Working Hours, Modern Award Overtime & Penalty Rates
- Standard Hours: 38 hours per week for full-time employees under the NES.
- Overtime & Penalty Rates: Non-exempt employees under Modern Awards receive 150% (time and a half) for the first 2 hours and 200% (double time) thereafter, with higher penalty rates on weekends (150% Sat / 200% Sun) and public holidays (250%).
Annual Leave, Public Holidays & Long Service Leave
- Annual Paid Leave: 4 weeks (20 working days) of paid annual leave per year under the NES (5 weeks for shift workers).
- Personal / Carer's (Sick) Leave: 10 paid days per year, accumulating progressively.
- Long Service Leave (LSL): Unique statutory entitlement granting 8.67 to 13 weeks of paid leave after 10 years of continuous service with the same employer (varies by State legislation).
- Parental Leave: 12 months unpaid leave under NES, alongside the Commonwealth Paid Parental Leave scheme (up to 20–26 weeks government-funded).
Superannuation Guarantee, PAYG Withholding & Payroll Tax
Superannuation Guarantee (SG)
Employers must contribute a statutory minimum percentage of the employee's Ordinary Time Earnings (OTE) into a compliant Superannuation fund: 11.5% (increasing to 12.0% on 1 July 2025). Contributions are remitted quarterly via SuperStream.
Pay-As-You-Go (PAYG) Withholding & Tax Brackets
| Taxable Income (AUD) | Tax Rate | Medicare Levy |
|---|---|---|
| $0 – $18,200 | 0% (Tax-free threshold) | 0% |
| $18,201 – $45,000 | 16% | 2.0% |
| $45,001 – $135,000 | 30% | 2.0% |
| $135,001 – $190,000 | 37% | 2.0% |
| > $190,000 | 45% | 2.0% |
Termination, Notice & Redundancy Pay under NES
NES Statutory Notice & Redundancy Scale
- Notice Period: 1 to 4 weeks based on tenure (+1 extra week if employee is over 45 with >= 2 years service).
- Redundancy Pay: Scales from 4 weeks (1–2 yrs service) up to 16 weeks (9–10 yrs service) for genuine redundancy.
- Unfair Dismissal: Employees passing the 6-month minimum employment period earning under the high-income threshold can challenge unfair dismissal before the Fair Work Commission (FWC).
Why Use an Employer of Record (EOR) in Australia
- Avoid Resident Director Requirements: Australian Pty Ltd entities require a local resident director; an EOR eliminates this requirement.
- Full Modern Award & SuperStream Compliance: EOR handles Award classifications, Single Touch Payroll (STP Phase 2), and quarterly Superannuation remittances.
- TSS 482 Visa Sponsorship: EOR sponsors foreign executive and technical work visas through the Department of Home Affairs.