Employer of Record in Australia

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
Talk to us about Australia

Why companies build teams in Australia

Lundi's Australian base — Sydney for finance and tech, Melbourne for tech, finance, and design, Brisbane for engineering and sales, Perth for resources tech. Built for companies needing English-fluent APAC time-zone coverage, accepting Australia's high unit cost and rigorous employment protections.

Languages

English

Payroll Frequency

Weekly, Bi-Monthly, Monthly

Currency

AUD

Capital City

Canberra

Employer Tax Rate

9.50%

Australia is for companies needing English-fluent APAC time-zone coverage — customer-facing roles serving Asia-Pacific customers, regional GTM and BD, product roles requiring real-time APAC collaboration, and Australian market presence. Sydney, Melbourne, and Brisbane concentrate the talent. Australia is expensive — comparable to UK cost levels, with mandatory superannuation (11.5–12%) sitting on top of gross salary. For pure cost arbitrage, the Philippines, Vietnam, or India are 60–80% cheaper. For companies building teams of 10+, not individual hires.

Why companies build teams here

Australia is the deepest English-language talent market in the Asia-Pacific time zone — mature financial services, technology, and resources sectors with strong senior talent depth. Atlassian, Canva, and Macquarie alumni networks anchor the technology and financial services ecosystems.

Multiple hubs, different specializations.

Sydney is the financial and corporate capital — Big Four banks (CBA, Westpac, NAB, ANZ), Macquarie, plus a deep technology employer ecosystem (Atlassian HQ, Canva HQ, plus international tech regional offices). Strong fit for finance, fintech, B2B SaaS, and senior corporate roles. Highest unit cost in Australia.

Melbourne is the technology, finance, and design capital — strong product, engineering, design, and analytics talent. Lower cost than Sydney (typically 10–15% below) with comparable senior depth in tech and design.

Brisbane is the engineering and regional sales hub — lower cost than Sydney/Melbourne (typically 15–20% below), growing tech sector, strong fit for engineering and APAC-regional BD roles.

Perth is the resources, mining-tech, and energy hub — specialized depth in resource industries, oil and gas, plus growing technology presence.

Operating context. Australia is on AEST/AEDT (UTC+10/+11), with Western Australia on AWST (UTC+8). Full Asia-Pacific time-zone alignment; significant offset to US (Sydney 6am = New York 4pm previous day in summer). English is native. Australia vs Singapore: Australia wins on senior talent depth and broader market; Singapore wins on absolute cost and Asia-Pacific access. Australia vs UK: similar cost, similar talent quality; UK wins on European time zone, Australia wins on Asia-Pacific.

Employer cost reality. Superannuation guarantee (currently 11.5%, rising to 12% from July 2025) sits on top of gross salary. State-based payroll tax kicks in above thresholds (rates typically 4.75–6.85%, thresholds AUD 1–1.3M annual wages). Workers' compensation insurance is state-mandated and varies by industry. All-in employer cost typically lands ~20–30% above gross depending on state and team size. Mid-level engineers in Sydney run AUD 110,000–150,000/year base plus super; senior engineers AUD 150,000–220,000; tech leads and engineering managers AUD 200,000–300,000+. Melbourne and Brisbane discount roughly 10–20%.

Employment Structure: EOR, Entity, or Build–Operate–Transfer

Australian employment is governed by the Fair Work Act 2009 and the National Employment Standards (NES). The system is more protective than the UK or US but workable for international employers — termination requires either valid reason with documented process or genuine redundancy with consultation.

EOR works well up to 20–30 headcount. Lundi's Australian employment infrastructure handles ATO PAYG withholding, superannuation guarantee payments (currently 11.5%, rising to 12% from July 2025), state-based payroll tax (rates vary by state, kicks in above thresholds typically AUD 1–1.3M annual wages), workers' compensation insurance (state-mandated), and statutory leave entitlements (4 weeks annual leave, 10 days personal/carer's leave, plus public holidays).

Pty Ltd entity makes sense at scale or for R&D Tax Incentive structures. An Australian proprietary limited company is the standard structure. Setup is reasonable. Lundi's BOT pathway can guide entity setup.

R&D Tax Incentive — the Australia structural advantage. Australian companies engaging in qualified R&D activities can claim a refundable tax offset (43.5% for companies with under AUD 20M aggregated turnover; 38.5% non-refundable for larger companies). For engineering and software development operations, this is materially significant and often overlooked. Lundi advises on qualification.

ESS (Employee Share Schemes). Australian ESS reforms in recent years have improved tax treatment of employee equity — startup concessions (for companies under AUD 50M turnover, under 10 years old) defer taxation until sale of shares rather than at exercise. Critical for attracting senior Australian talent in competitive markets.

Superannuation reality. Mandatory super (currently 11.5%, scheduled to reach 12% in 2025) sits on top of gross salary — employers can either pay it on top (common) or include it in a total package. Buyers should clarify which structure they're modeling.

Why HRBP infrastructure matters in Australia. Fair Work performance management, unfair dismissal protections (apply broadly), and award/enterprise agreement compliance benefit from local fluency. Every Lundi Australia team includes a named HRBP from day one.

Cost of Employment in Australia

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Australia

Employer Tax Costs in Australia

In Australia, there is a compulsory superannuation guarantee contribution that is capped at 21,002.06 AUD per year. In addition, employers who exceed a threshold amount of wage bill also pay a payroll tax, which differs by state. For instance, in New South Wales, this is paid at the rate of 5.45%. Social contributions for employers total 10%.

Employee Income Taxes in Australia

Employees in Australia are required to pay a medicare levy of 2%.

Employee Probation in Australia

Employers in Australia are not obligated to offer a reason for terminating employees:Who have been working for less than six months (for an organization larger than 15 employees)Who have been working for less than a year (for an organization that have fewer than 15 employees)

Employee Overtime in Australia

Employees in Australia typically work 38 hours a week, unless additional hours are "reasonable.” These must be pre-negotiated by employers and employees. Employees do not have the option to opt out of these provisions.

Employee Notice in Australia

In Australia, the notice period is determined by an employee’s length of employment:

  • Less than one year: One week
  • One to three years: Two weeks
  • Three to five years: Three weeks
  • Five years: Four weeks

If the employee is over 45 and has been employed for at least two years, they are entitled to an additional week of notice.

Employees should check their award or employment contract for the notice period set out for resignations.

Termination in Australia

Employers in Australia can offer termination pay in lieu of a notice of termination. This is paid at the employee's full pay rate as if they had worked the minimum notice period.Employees made redundant are entitled to redundancy pay, which is paid at their bas —not full—salary level. This excludes incentive-based payment and bonuses, or overtime and penalty rates.

How Lundi works in Australia

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.