Expanding your business to Australia

Country guides

Why companies expand to Australia

Australia is a stable, English-speaking market with a strong legal system, high incomes and a time zone that bridges Asia and the Americas. Overseas companies typically hire in Australia to:

• Sell to Australian and New Zealand customers with a local team in the same time zone.
• Cover Asia-Pacific from a base with good connections to Singapore, Japan and South-East Asia.
• Access skilled talent in technology, mining, health, finance and professional services.
• Provide follow-the-sun support, as Australian business hours overlap with Asia and the end of the North American day.

The pages above compare Australia's employment rules with your home country's, topic by topic. Before you open one, it helps to understand the decisions every overseas employer makes.

Step 1: choose how you will employ

You have three main options, compared in detail in our guide to EOR vs setting up an Australian entity.

Employer of Record. An EOR employs your Australian staff and handles payroll, super, tax and compliance. It is the fastest option and needs no local registration, which makes it popular for the first one to ten hires. You pay a per-employee fee.

Register a foreign company or set up a subsidiary. A foreign company can register with the Australian Securities and Investments Commission (ASIC) to carry on business in Australia, or incorporate an Australian subsidiary. Either way you will need an Australian Business Number, tax registrations, a payroll system, a super clearing process and workers' compensation insurance. An Australian company also needs at least one director who ordinarily resides in Australia.

Engage contractors. This only works for people who are truly running their own business. Australian courts look at the real substance of the relationship. See employee vs contractor in Australia.

Step 2: understand the Australian employment system

Australia's national system is built on the Fair Work Act 2009. Three layers set an employee's minimum terms:

1. The National Employment Standards (NES). Minimum entitlements covering hours, leave, notice, redundancy, flexible work and more, plus the Fair Work Information Statement.
2. Modern awards. Industry and occupation instruments that set minimum pay rates and conditions such as overtime, penalty rates and allowances.
3. The employment contract. Your contract can give more than the minimums but never less.

Read the full picture in Australian employment essentials.

Step 3: budget for the full cost

Salary is the starting point. Australian on-costs include:

• Superannuation at 12% of qualifying earnings, paid each payday since Payday Super started on 1 July 2026.
• Payroll tax once your total Australian wages pass the threshold in the relevant state or territory.
• Workers' compensation insurance, which is compulsory in every state and territory.
• Leave liabilities, as unused annual leave is paid out when employment ends.
• Your structure costs, either an EOR fee or the cost of running your own entity.

See EOR costs and pricing models explained for how providers price these.

Step 4: check work rights and visas

Every worker in Australia must have the legal right to work. Australian and New Zealand citizens and Australian permanent residents can work without restriction. Other people need a visa with work rights, which employers can confirm through the government's Visa Entitlement Verification Online (VEVO) system.

If you want to bring someone from overseas, the main employer-sponsored temporary visa is the Skills in Demand visa (subclass 482). It requires an approved sponsor. If you plan to use an EOR, ask early whether it can act as sponsor; many cannot.

Step 5: get the contract and onboarding right

A compliant Australian employment contract usually covers:

• Position, classification and the applicable award or agreement.
• Pay, including whether super is on top or included.
• Hours of work, including reasonable additional hours.
• Leave entitlements and any extras you offer.
• Probation, notice and termination.
• Confidentiality, intellectual property and any post-employment restraints.

On or before the first day, the employee must receive the Fair Work Information Statement, and casual or fixed-term employees also need the relevant additional statement. The employee completes a tax file number declaration and chooses a super fund, or is "stapled" to their existing fund.

Step 6: manage within Australian norms

Australian workplaces tend to be informal and flat, but the legal protections are strong:

• Dismissal needs a valid reason and a fair process once an employee passes the minimum employment period (6 months, or 12 for small businesses).
• General protections apply from day one, so dismissing someone for raising a complaint or taking leave can be unlawful at any time.
• Employees can request flexible working in certain circumstances, and employers must respond within 21 days.
• The right to disconnect means employees can refuse unreasonable contact outside their working hours.

Common mistakes by overseas employers

1. Using a home-country template contract. At-will clauses, US-style PTO pools and foreign governing law clauses can all cause problems.
2. Forgetting state differences. Payroll tax, workers' compensation, long service leave and public holidays depend on the state where the employee works.
3. Missing super. Under Payday Super, late or missing contributions trigger the super guarantee charge quickly.
4. Mislabelling contractors. A full-time "contractor" who works only for you, on your schedule, with your equipment, is likely an employee.
5. Underestimating notice and redundancy. Ending employment involves notice under the NES, payment of accrued annual leave and, for larger employers, redundancy pay.

Where to go next

Choose your home country above to see how its rules compare with Australia's, topic by topic. Then read the Australian employment essentials guide and check our HR News for recent changes such as Payday Super and the 2026 Annual Wage Review.