Hiring in Australia as a New Zealand company

For many Kiwi businesses Australia is the obvious next step. The two systems share a lot, but Australia's awards, super and state taxes add layers New Zealand employers don't deal with at home.

Last reviewed By the editorial team
On this page (7 sections)
  1. Overview
  2. New Zealand and Australia at a glance
  3. The differences that matter most
  4. Common compliance traps
  5. How an EOR works for New Zealand companies in Australia
  6. FAQs
  7. Sources
NZDLocal currency
WellingtonCapital
NZST (UTC+12), 2 hours ahead of SydneyTime difference

Overview and why companies expand from New Zealand to Australia

  • Australia is one of New Zealand's biggest export markets and offers a much larger customer base next door.
  • New Zealand citizens can live and work in Australia under the Special Category Visa, which simplifies moving staff across the Tasman.
  • Similar culture, language and time zone make managing an Australian team straightforward.
  • Australia's larger talent pool helps New Zealand companies scale specialist teams.

New Zealand and Australian employment law grew from the same roots and still look alike in many ways: written agreements, minimum leave, protection from unjustified or unfair dismissal and compulsory workplace savings. But Australia's system is more prescriptive. Most Australian employees are covered by a modern award, super is a flat 12% employer cost and state governments add payroll tax, workers' compensation insurance and long service leave.

New Zealand and Australia at a glance

Summary only. Figures were checked against the official sources listed below on 2026-10-08. Many rules depend on the employee's award, contract, state or province.
TopicNew ZealandAustralia
Employment contractsEvery employee must have a written employment agreement. Individual agreements must include certain clauses, such as an explanation of how to resolve employment relationship problems and an employment protection provision for restructures.A written contract is not legally required but is standard practice. Employers must give every new employee the Fair Work Information Statement, plus the Casual or Fixed Term Contract Information Statement where relevant. A modern award or enterprise agreement usually sets minimum terms. Fixed-term contracts are generally limited to 2 years or 2 consecutive contracts.
ProbationTrial periods of up to 90 days are available to all employers if agreed in writing before work starts. Employees dismissed during a valid trial cannot bring an unjustified dismissal grievance. Probationary periods are also allowed.No statutory probation. In practice the unfair dismissal "minimum employment period" works as one: 6 months, or 12 months for small businesses with fewer than 15 employees.
Working hoursNo statutory maximum week. The agreement must state the agreed hours, and employees are entitled to paid rest breaks and unpaid meal breaks.Maximum 38 ordinary hours a week plus reasonable additional hours under the National Employment Standards. Awards set overtime rates. Employees have a right to disconnect outside working hours unless refusing is unreasonable.
Minimum wageAdult minimum wage of NZ$23.95 an hour from 1 April 2026, with a lower starting-out and training rate.National Minimum Wage of $26.44 an hour ($1,004.90 a week) from 1 July 2026. Most employees are covered by a modern award with higher minimum rates for their classification.
Annual leave4 weeks paid annual holidays after 12 months of continuous employment.4 weeks paid annual leave a year for full-time employees (5 weeks for some shift workers), accruing progressively. Untaken leave is paid out on termination. Many awards add a 17.5% leave loading.
Sick leave10 days paid sick leave a year after 6 months of continuous employment.10 days paid personal/carer's leave a year for full-time employees, plus 2 days unpaid carer's leave and 2 days paid compassionate leave per occasion. All employees can also take 10 days paid family and domestic violence leave a year.
Parental leaveUp to 26 weeks of government-funded paid parental leave for eligible employees, and up to 52 weeks of job-protected leave depending on length of service.Up to 12 months unpaid parental leave after 12 months of service, with the right to request 12 more. The government funds up to 26 weeks of Parental Leave Pay at the national minimum wage from 1 July 2026, paid through Services Australia rather than the employer.
Public holidays12 public holidays a year, including Matariki and a regional anniversary day. Employees who work on a public holiday get time and a half and, in many cases, an alternative holiday.National public holidays such as New Year's Day, Australia Day, Good Friday, Easter Monday, Anzac Day, Christmas Day and Boxing Day, plus state and territory holidays. Employees who work on a public holiday are usually paid penalty rates under their award.
Retirement and social securityKiwiSaver employer contributions of at least 3.5% of gross pay from 1 April 2026 for members, matched by a default 3.5% employee rate. Employer contributions are taxed through employer superannuation contribution tax (ESCT).Superannuation Guarantee of 12% of qualifying earnings, paid by the employer on top of wages. Since 1 July 2026 super must be paid each payday and reach the fund within 7 business days (Payday Super). There is no separate employer social security levy.
Payroll taxesEmployers deduct PAYE and pay ACC levies for workplace injury cover. There is no state payroll tax.Employers withhold PAYG income tax from wages. Each state and territory charges payroll tax once total Australian wages pass a threshold, for example 5.45% above $1.2 million in NSW and 4.85% above $1 million in Victoria. Workers' compensation premiums are also payable.
Notice periodsNo statutory minimum. The agreement should state the notice period; otherwise reasonable notice applies.Employer notice under the National Employment Standards: 1 week (up to 1 year of service) rising to 4 weeks (over 5 years), plus 1 week if the employee is over 45 with at least 2 years of service. Pay in lieu is allowed. Awards set employee notice.
Dismissal protectionEmployees can raise a personal grievance for unjustified dismissal from day one, unless they were dismissed under a valid 90-day trial. Employers must follow a fair process.Unfair dismissal protection applies after the minimum employment period to employees covered by an award or agreement, or earning under the high income threshold of $190,100 (from 1 July 2026). General protections against adverse action apply from day one. Small businesses can follow the Small Business Fair Dismissal Code.
SeveranceNo statutory redundancy pay. Redundancy compensation depends on the employment agreement.Statutory redundancy pay of 4 weeks (1 to 2 years of service) rising to 16 weeks (9 to 10 years), then 12 weeks at 10 years or more, when long service leave usually takes over. Small businesses with fewer than 15 employees are generally exempt.
Mandatory benefitsKiwiSaver, ACC cover, holidays and leave under the Holidays Act 2003.Superannuation, workers' compensation insurance (state-based and compulsory), paid leave under the National Employment Standards and long service leave under state and territory laws, usually after 7 to 10 years of service.
IP and restraint clausesRestraints of trade are enforceable only if reasonable. Employers generally own copyright in work created by employees in the course of employment.Post-employment restraints are only enforceable if reasonable to protect a legitimate business interest. Employers generally own IP that employees create in the course of employment. The federal government has proposed banning non-compete clauses for employees under the high income threshold from 2027; this was not law at the last review.
Visas and right to workAustralian citizens and permanent residents can live and work in New Zealand without a work visa. Other hires typically need an Accredited Employer Work Visa, which requires the employer to be accredited.Every worker needs Australian work rights, which employers can check through VEVO. Sponsored skilled hires generally use the Skills in Demand (subclass 482) visa, which needs an approved sponsor. Some EORs can sponsor, many cannot.

The differences that matter most

Awards set the minimum, not just the minimum wage

In New Zealand, the adult minimum wage is NZ$23.95 an hour from 1 April 2026, and most terms are set by agreement. In Australia, the National Minimum Wage is $26.44 an hour from 1 July 2026, but most employees are covered by a modern award that sets higher minimum rates by classification, as well as overtime and penalty rates.

No 90-day trials

New Zealand employers can use a 90-day trial to dismiss without a personal grievance risk. Australia has no direct equivalent, although the minimum employment period of 6 months (12 for small businesses) has a similar practical effect for unfair dismissal. General protections still apply from day one.

Super vs KiwiSaver

KiwiSaver is opt-out and contributions are shared. Australian super is a mandatory 12% employer contribution paid each payday, regardless of whether the employee contributes. It is a larger and more predictable on-cost.

State-level obligations

New Zealand has a single national system with ACC for workplace injuries. In Australia, workers' compensation insurance, payroll tax and long service leave are state and territory matters, so the rules depend on where the employee works.

Redundancy pay

New Zealand has no statutory redundancy pay. Australia requires redundancy pay of 4 to 16 weeks under the National Employment Standards for employers with 15 or more employees.

Common compliance traps

  • Copying a New Zealand agreement, including trial period clauses that have no effect in Australia.
  • Overlooking award coverage for professional roles.
  • Budgeting for KiwiSaver-level contributions instead of 12% super.
  • Forgetting payroll tax and workers' compensation registrations in each state.
  • Treating public holidays the New Zealand way. Australian holidays and penalty rates come from the NES and awards, and vary by state.

How an EOR works for New Zealand companies in Australia

An Australian EOR employs your hire, sets up an Australian contract with the right award classification, runs payroll in AUD and pays super each payday. You keep managing the work. Because New Zealand citizens can usually work in Australia without sponsorship, an EOR can be a quick way to move an existing team member across the Tasman. When you have a larger team, you can register an Australian company and transfer staff. See EOR vs setting up an Australian entity.

Frequently asked questions

Can a New Zealander work in Australia without a visa?

New Zealand citizens are generally granted a Special Category Visa (subclass 444) on arrival in Australia, which lets them live and work in Australia. They still need to meet health and character requirements. Australian employers can confirm work rights through VEVO.

Are 90-day trial periods available in Australia?

Not in the same form. Australia has no statutory trial period that excludes unfair dismissal claims, but the minimum employment period means employees can't claim unfair dismissal until they have served 6 months, or 12 months with a small business.

How does super compare with KiwiSaver?

Australian super is a compulsory 12% employer contribution for all eligible employees, with no employee contribution required. KiwiSaver is opt-out, with a minimum employer contribution of 3.5% from April 2026 for members who contribute.

Does Australia have personal grievances?

Not by that name. Australian employees can bring unfair dismissal claims after the minimum employment period, and general protections claims from day one, to the Fair Work Commission.

Is there payroll tax in Australia?

Yes. Each state and territory charges payroll tax once an employer's total Australian wages exceed a threshold, for example $1.2 million in NSW. New Zealand has no equivalent tax.

Sources

Last reviewed:

Figures on this page were checked against these official sources on 8 October 2026. Rates and thresholds change, often on 1 January, 1 April or 1 July, so confirm current figures before relying on them.

  1. Department of Home Affairs: Special Category Visa (subclass 444)
  2. Employment New Zealand: Minimum wage increasing on 1 April 2026
  3. Employment New Zealand: Annual holidays
  4. Employment New Zealand: Sick leave
  5. Employment New Zealand: Trial periods
  6. Employment New Zealand: Parental leave
  7. Employment New Zealand: Public holidays
  8. Inland Revenue: KiwiSaver changes
  9. Immigration New Zealand
  10. Fair Work Ombudsman: National Employment Standards
  11. Fair Work Ombudsman: Annual Wage Review 2026
  12. Fair Work Ombudsman: Fair Work Information Statement
  13. Fair Work Ombudsman: Dismissal and notice
  14. Fair Work Ombudsman: Redundancy pay
  15. Fair Work Ombudsman: Unfair dismissal
  16. Fair Work Ombudsman: Right to disconnect
  17. ATO: Payday Super
  18. Services Australia: Parental Leave Pay
  19. Revenue NSW: Payroll tax
  20. State Revenue Office Victoria: Payroll tax
  21. Department of Home Affairs: Skills in Demand visa (subclass 482)

Related guides

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Compare an EOR with setting up your own entity or engaging contractors, then check the rules for your target country.

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