Local employment review
Check the job duties, work location, employee type, award or agreement coverage and suitable legal employing structure.
Employer of Record Australia
EOR in Australia: hire employees without a local entity
Planning your first Australian hire? TXM Solutions helps international employers assess an Employer of Record arrangement for local contracts, payroll, superannuation and HR administration. Your company directs the employee’s day-to-day work while the confirmed Australian legal employer handles its employer obligations.
Discuss an Australia EOR hire →The short answer
What is an Employer of Record in Australia?
An Employer of Record (EOR) in Australia is an arrangement under which a suitable Australian employing entity becomes the worker’s legal employer. It manages the employment contract, payroll and statutory obligations, while the client company manages the role and daily work. A foreign company may be able to hire through this model without establishing its own Australian subsidiary, subject to the proposed work and employing structure.
This can suit a first employee, a small local team or a market test. TXM Solutions reviews the role, state or territory, salary, employment classification and work rights before confirming the available arrangement. Explore our UAE EOR service also Employer of Record services.
Employment lifecycle
What an Australia EOR service can cover
Contract and onboarding
Coordinate appropriate employment terms and information statements through the confirmed Australian employer.
Payroll in AUD
Coordinate wages, payslips, applicable PAYG withholding and Single Touch Payroll reporting to the ATO.
Superannuation
Account for the 12% super guarantee and Payday Super timing requirements that began on 1 July 2026.
Leave and benefits
Administer applicable NES entitlements, public holidays and any award or agreement conditions.
Ongoing HR support
Coordinate payroll changes, leave records, employee queries and locally reviewed offboarding.
From hiring brief to first payslip
How to hire in Australia through an EOR
1. Share the role
Provide the city and state, duties, proposed salary in AUD, hours, employee status, nationality and target start date.
2. Check the rules
Review the employing structure, award classification, minimum pay, work rights and any state-specific requirements.
3. Approve the budget
Review an itemised estimate covering gross pay, super, other applicable employer costs and the EOR fee.
4. Onboard and pay
The confirmed legal employer coordinates the contract and payroll; your team manages daily duties and objectives.
Australian employment essentials
What must employers check before the first hire?
Australia’s National Employment Standards (NES) set minimum entitlements for most employees in the national system. A modern award or enterprise agreement may add role-specific pay rates and conditions. The correct classification matters more than a generic national minimum wage.
NES and leave
Full-time and part-time employees generally accrue four weeks of annual leave. Full-time employees generally accrue 10 days of paid personal/carer’s leave per year, with part-time entitlement based on hours. Other NES rights depend on the circumstances.
Modern awards and pay
Check whether a modern award or registered agreement covers the worker, and identify the right classification, minimum rate, allowances and penalty or overtime rules. Rates can change.
PAYG and STP
The legal employer should manage applicable pay-as-you-go tax withholding and report payroll information through Single Touch Payroll when required.
Super and Payday Super
From 1 July 2026, the super guarantee is generally calculated at 12% of qualifying earnings and paid on payday, with receipt timing rules and exceptions under ATO guidance.
State and territory rules
Workers’ compensation, payroll tax and any labour-hire licensing question depend on the jurisdiction and arrangement. Confirm the requirements for the employee’s work location.
Visa and work rights
An EOR contract does not grant permission to work. Check any visa conditions through VEVO and assess sponsorship separately if needed.
Fixed-term and casual hiring have additional rules. For a fixed-term role, review the current contract limitations and any exception before offering terms. Also account for applicable right-to-disconnect and long-service-leave rules.
Build the complete budget
How much does an EOR in Australia cost?
Budget for gross salary in AUD, superannuation, applicable workers’ compensation and payroll tax, award allowances or penalty rates, leave and benefits, plus the EOR service fee. The total depends on the role, salary, industry, state or territory and contract terms.
TXM Solutions can prepare an itemised Australia EOR estimate after reviewing the role and confirming the available local employing route. We do not use a single flat total for every hire.
Request an itemised quote →Details needed for a quote
- Employee’s city, state or territory
- Job duties, industry and proposed title
- Gross salary in AUD and work hours
- Full-time, part-time, casual or fixed-term proposal
- Nationality and current work rights
- Start date, headcount and benefits
Choose a suitable structure
Australia EOR vs setting up your own entity
| Decision factor | EOR arrangement | Your Australian entity |
|---|---|---|
| Local company for your business | Generally unnecessary for a suitable EOR hire | Local registration and employer setup required |
| Legal employer | Confirmed Australian employing entity | Your employing entity |
| Payroll and HR administration | Coordinated through the EOR service | Managed by your team and providers |
| Typical fit | First hire, market test or smaller team | Broader, sustained Australian operation |
| Cost pattern | Employment costs plus EOR fee | Entity setup plus ongoing company and payroll costs |
An EOR arrangement does not automatically resolve corporate tax, permanent establishment, licensing or immigration questions arising from your business activities.
Clear division of responsibilities
Who manages the employee?
The local legal employer handles the employment contract and employer administration under the confirmed arrangement. Your company sets the role, directs day-to-day work, approves work outputs and supplies the information needed for payroll changes.
Work health and safety responsibilities can involve more than one party. Allocate duties in the service agreement and review the employee’s actual workplace and activities.
Frequently asked questions
Australia EOR FAQs
Can a foreign company hire in Australia without opening an entity?
A suitable EOR arrangement can allow an Australian legal employer to employ the worker while your company directs the daily work. The route must be checked for the role, activities and work location.
Who is the legal employer under an Australia EOR?
The Australian employing entity named in the employment agreement is the legal employer. TXM Solutions confirms the structure and responsibilities for the proposed hire before onboarding.
Does an Australia EOR manage PAYG and Single Touch Payroll?
The scope can include local payroll, applicable PAYG withholding, STP reporting, payslips and superannuation through the confirmed legal employer. Review the exact scope in the service agreement.
What is the superannuation guarantee rate in Australia?
The rate is 12% in 2026. Since 1 July 2026, Payday Super rules generally require super guarantee to be calculated on qualifying earnings and paid on payday, subject to ATO timing rules and exceptions.
Do modern awards apply to EOR employees?
Potentially. Award or enterprise agreement coverage depends on the role and employer. The applicable classification, minimum pay and any allowances or penalty rates must be checked before setting salary.
How much annual leave does an Australian employee receive?
Full-time and part-time employees generally accrue four weeks of paid annual leave based on ordinary hours. Some employees have additional entitlements under applicable rules.
Can an EOR sponsor a visa in Australia?
Do not assume visa sponsorship is included. Work rights and any sponsorship route require a separate assessment of the person, role and employing entity.
How long does EOR onboarding take?
Timing depends on the local employing arrangement, award review, documents, payroll cut-off and work authorisation. We confirm a proposed start date after reviewing those factors.
Is a contractor agreement an alternative to EOR employment?
Only if the working relationship is genuinely independent contracting under Australian rules. A contract label alone does not determine worker status; review the duties, control and actual arrangement.
Information note: This page provides general information as at September 2026. Confirm current federal and state requirements, legal structure, tax position and work rights for each hire.
Build your Australian team
Ready to discuss your first hire?
Tell TXM Solutions the role, Australian work location, proposed salary and start date. We will review the available EOR route and prepare a tailored estimate.
Australian official references:
National Employment Standards
Modern awards
ATO Payday Super
VEVO work rights