Read The Times Australia

Daily Bulletin

Hiring and Processing Payroll In Australia? This is what you need to know

  • Written by: Daily Bulletin

As one of the world’s most developed economies, Australia is an attractive destination for international companies looking to expand their operations or source new talent. In addition to a population of over 25 million people, a highly educated and English-speaking workforce, and a burgeoning technology sector, Australia also offers a friendly business environment and a variety of enterprise-oriented tax incentives.

But while the country has a reputation for being a great place to expand and operate in, it still takes time and effort to navigate the complex regulatory environment and maintain payroll compliance. Even small regulatory changes can have a large impact on your ability to operate and manage your business, so it’s critical to stay informed and up to date with the latest requirements.

To this end, we’ve put together a list of the most important requirements, regulations, and standards affecting hiring and employer obligations in Australia.

We’ll update this list as new requirements are announced, alternatively there are other reputable data sources, including this Australia guide with comparative infographics enabling you to see how your payroll tax will compare with other countries.

1. Working hours

The maximum weekly working hours required for full-time employees in Australia are outlined in Australia's National Employment Standards (NES). The NES establish a range of minimal entitlements for employees in Australia, including required working hours, parental and long service leave requirements, and termination protections. These standards apply to all Australian employees, regardless of any alternative contracts or internal agreements.

When it comes to working hours, the NES stipulate a maximum of 38 hours of required weekly work for full-time employees. Under the NES, an employee is free to refuse a request to work additional hours beyond this limit if the request is deemed unreasonable.

If an employer and employee reach a mutual arrangement, the 38-hour weekly work limit can be averaged across a 26-week period. This system enables employees to work overtime as required. Of course, they are then free to deduct the excess hours from subsequent working weeks.

2. Overtime payments

Employer responsibilities for overtime payment are governed by a range of agreements, including industrial awards from the national Fair Work Commission and registered agreements between employee and employer. Employees who aren't covered by an industrial award or registered agreement do not receive statutory rights to overtime pay.

The threshold for overtime is usually defined as working more than 38 hours per week or more than 10 hours in a day. Weekend work or work performed on a public holiday is typically subject to additional overtime and/or penalty rates.

Award industries in Australia can include everything from dry cleaning and laundry services to oil refining and manufacturing. The overtime conditions specified by an industrial award outline the minimum rate of pay for overtime hours — a registered agreement may exceed this rate but cannot be less.

A full list of industry awards can be found here. Additional occupation-specific awards may be active at the state and territory level.

3. Requests for flexible working arrangements

According to the NES, Australian employees can request a range of flexible working arrangements based on time with their employer (at least 12 months), age, personal disability, parental responsibilities, or extenuating family circumstances. Employees working in an award industry may be subject to additional rights when requesting a flexible working arrangement.

A flexible work arrangement can encompass several different requests, including changing work location, shifting to remote work, changing clock on/off times, or implementing a job-sharing system.

Employers are entitled to refuse a flexible work arrangement request. However, this refusal must be justified on reasonable business grounds, the terms of which are laid out under the Fair Work Act 2009 (e.g., excessive productivity losses or implementation costs).

4. Community service leave

Another standard outlined in the NES is the provision of community service leave. This leave is made available to employees in order to accommodate voluntary emergency management activities (unpaid) or jury duty (paid).

5. Long service leave

The NES also stipulates long service leave entitlements for full-time and casual employees who have been with the same employer for a prolonged period of time. The threshold for long service leave eligibility differs between different states and territories but is usually between 7 and 10 years. If an employee is terminated with unused long service leave, the accrued sum is typically paid out in a lump sum.

The Bottom Line

Hiring in Australia is a challenge for businesses of all sizes, but the opportunities for expansion for those willing and able to adapt are plentiful.

Ultimately, hiring in Australia requires an understanding of the cultural norms, government regulations, and legal systems underwriting the employer-employee relationship. To avoid falling afoul of local regulatory regimes, employers should make every effort to ensure their hiring policies and payroll structures are up-to-date and in compliance with current requirements.

EOFY and beyond: Plan ahead to avoid costly mistakes later

  • Written by: Kerry Agiasotis, APAC President of The Access Group

As the start of a new financial year, SOFY, looms, now is the time to set your business up for success. And that starts with planning.

To help you understand what you can do now that will pay dividends later, the experts at The Access Group have compiled the top 5 things you need to know to close out the financial year and set yourself up for a flying start to FY23.

1. Get curious about your year ahead

You need to know what the year ahead looks like for your business. What do you want to achieve? What’s your budget? KPIs? Will you need to hire more people?

Undertake some scenario planning. With inflation and interest rates on the rise that’s even more important this year. What would be the impact on your business if expenses blew out? If fuel costs increased 10% for example? Wages? Interest rates? Would you need a loan? Understand the different thresholds for your business and plan accordingly.

2. Don’t let the deduction boat sail without your refund

Hindsight is the greatest teacher. But if you haven’t spent to take advantage of incentives and deductions like assets you might need, 20/20 hindsight is only going to fill you with regret, not refunds.

Make sure your payroll deductions are reported correctly, and avoid common errors businesses make, including:

  • * Not reporting Salary Sacrifice Superannuation as “Reportable Superannuation”

  • * Not reporting Union Deductions as “Fees”

  • * Reporting donations made through payroll as “Workplace Giving”.

3. Get to grips with compliance and changes

The Access Group recommends doing training before SOFY to get on top of system, compliance or legislative changes. This year, for instance, you need to check your employee’s contracts to see if superannuation payments are inclusive in their salary.

With superannuation going up to 10.5%, the extra 0.5% may need to come off an employee’s salary. While most employees pay super on top of annual salary, if you pay a “total package including superannuation”, you’ll need to adjust salaries accordingly before the first payroll in the new year.

Review your payroll now to see if you have any employees with a Tax Variation in place for the current year. Remind them to provide their new Tax Variation approval from the ATO, and if it’s not received, change to standard tax.

4. Do a systems review

Now is a great time to take a few hours out of your day-to-day activities to review your system, look at the allowances, deductions, leave and super and ensure everything is working as you would expect. Are STP2 changes sorted? Compliance?

Look for opportunities to streamline. Could you use tools to automate some work and eliminate manual entry (and errors)? Would hiring a bookkeeper to come in monthly give you cleaner records at year end and more time back during the year? Are you using the most appropriate software for your industry and organisation? Could you simplify things by connecting payroll and finance systems on a single platform like Access Workspace?

5. Optimise payroll for the year ahead

Whether you’re paying a hundred or a handful of people, there are things you can do now that will make payroll easier to manage throughout the year.

Create a payroll schedule for FY23 - include payroll cut off dates, payroll due to bank dates, names of payroll bankers/approvers (ask when they are on leave to make sure someone is always available for banking), and a leave planner, so there’s a replacement for when you take leave.

  • * Set up a monthly email with payroll deadlines - include timesheets, leave forms and expenses and send it to all employees.

  • * Do a public holiday review - check they don’t clash with a banking day. If they do, let your approvers know.

  • * Annual Awards check - the Academy Awards are held once a year. Make reviewing the Awards in your business an annual event too.

To maximise deductions, incentives and entitlements, ease the end of year rush and set your business up for success, you need to be prepared.

Going through your payroll and reconciling now - and making it a monthly habit - will mean no nasty surprises next EOFY.

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Why Preventive Care Matters for Heavy-Duty Equipment

Heavy duty equipment is supposed to operate under the same conditions as a normal machine but do s...

7 Natural Tips to Restore Shine and Softness to Dull Hair

Healthy, lustrous hair often feels like an unattainable dream when you are dealing with dry, brittle...

Buying Property with Someone else? Settle these Questions First

Buying a home with a partner, a sibling or a friend can make a purchase possible that neither of you...

How to Handle a Blocked Drain in Bribie Island Before Starting Deck Repairs

Planning an outdoor upgrade brings excitement, but building a beautiful timber deck requires caref...

What to Look For When Selecting an Installation Specialist for Gas Stoves and Water Filters in Brisbane

Upgrading your kitchen or improving your home's water quality requires specialised skills. When mana...

What to Consider Before Cleaning Your Exterior: Deck Pressure Cleaning, Pressure Cleaning, and How Much Does It Cost to Pressure Wash a House?

Maintaining a home's exterior in coastal Sydney requires regular attention to combat salt spray, mou...

Signs Your Trailer Needs Professional Repair Before Its Next Long Haul

A long road trip can put considerable strain on a trailer, particularly when it is carrying heavy ...

Automatic, Manual, CVT or DCT: Which Transmission Suits Australian Drivers?

Australia’s enthusiasm for cars is nothing new. From family SUVs and work utes to compact city cars ...

Cape Town: Full Day Private Cape Peninsula & Cape Point Tour

Embark on an unforgettable adventure with a full day private Cape Peninsula & Cape Point tour...