Payroll and Benefits Guide Australia – Victoria
Last updated: Jul 23, 2025
Contribution
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Employer Payroll Contributions
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4.95%-6.85%
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Payroll Tax, including a temporary additional surcharge at a rate of 0.5% or 1% depending on company set up, in place for 10 years until 30 June 2033. Local Victoria companies have this tax applied where the total monthly taxable wages exceeds 833,333 AUD. Other companies have payroll tax applied where the first national payrolls exceeds 10 million AUD and the second national payroll exceeds 100 million AUD. |
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2.00%
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Medicare
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12.00%
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Superannuation (capped at 30,000 AUD per year) *
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18.95%-20.85%
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Total Employment Cost
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Employee Payroll Contributions
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2%
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Medicare Levy
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2%
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Total Employee Cost
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Employee Income Tax**
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0.00%
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0 AUD – 18,200 AUD
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19.00% for each 1 AUD over 18,200 AUD
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18,201 AUD – 45,000 AUD
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5,092 AUD plus 32.5 cents for each 1 AUD over 45,000 AUD
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45,001 AUD – 120,000 AUD
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29,467 AUD plus 37 cents for each 1 AUD over 120,000 AUD
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120,001 AUD – 180,000 AUD
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51,667 AUD plus 45 cents for each 1 AUD over 180,000 AUD
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180,001 AUD and over
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*This table does not include an additional Medicare levy surcharge of between 1.00% and 1.50% applies to certain higher-income taxpayers who are not covered by health insurance for private patient hospital cover.
** Foreign workers are subject to different tax rates starting at 32.5% on earnings up to 135,000 AUD, a rate of 39,000 AUD plus 37% is applied on amounts over 120,000 to 180,000 AUD and a rate of 61,200 AUD + 45% is applied on amounts over 180,000 AUD.
Employer taxes
Employee taxes
Minimum Wage
General
The minimum wage rate is 24.10 AUD per hour or 915.90 AUD per week
This rate is set by The Fair Work Act each year as a National Minimum Wage which applies to all employees who are not covered by an award or registered agreement.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
Employees in Australia are employed on contracts that stipulate the pay cycle, and although there are part-time, casual, and independent contractor pay types with set pay cycles, the most common are:
Monthly payroll (with payment due by the last day of the month)
Bi-weekly payroll (with payments due every second week on a set day, usually mid-week, Wednesday, or Thursday), Bi-monthly payroll (with payment due on the 15th and the 30th, respectively).
13th Salary
There is no legislation for 13th-month payments in Australia.
Authority Payments
| Authority Payment | Dates | Methods |
| ATO | Small withholders up to AUD: 25,000 pa – 28 days from quarter end Medium withholders AUD 25,001- 1000,000 pa- 21 days from EOM Large withholders >100,000 pa – Monday/Thursday about 1 week from payment |
EFT/BPAY/Australia Post – can use wire as well AUD |
| Workers compensation | Annually | BPAY AUD |
| Superannuation Super Funds |
Monthly or quarterly. If quarterly, 28th day after the end of the each quarter |
Direct Debit/EFT/BPAY AUD |
| NSW Office of State Revenue Payroll tax |
7th of the following month. 21st of July if annual |
Direct Debit/BPAY AUD |
| VIC State Revenue Office Payroll tax |
7th of the following month. 21st of July if annual |
Direct Debit/BPAY AUD |
| QLD Office of State Revenue Payroll tax |
7th of the following month 14th of January of bi-annual 21st of July if annual |
EFT/BPAY AUD |
| TAS Office of State Revenue Payroll tax |
7th of the following month. 21st of July if annual |
EFT/BPAY AUD |
| Revenue SA Payroll tax |
7th of the following month. 21st of July if annual |
EFT/BPAY AUD |
| NT Office of State Revenue Payroll tax |
7th of the following month. 21st of July if annual |
EFT AUD |
Working Hours
General
The National Employment Standards (NES) sets the maximum number of working hours at 38 hours a week; this applies to all employees covered by the national workplace relations system, regardless of any award, agreement, or contract.
The Fair Work Commission can now arbitrate and make orders regarding the right to disconnect. Employers must clearly communicate if a role requires after-hours contact and what is expected. This right encourages discussions about after-hours contact, ensuring employees know when they can switch off. Employees can refuse contact outside working hours unless it is unreasonable.
Employers can still contact employees outside working hours but cannot take adverse action against those who reasonably exercise their right to disconnect.
Overtime
The regulations are governed nationally by the Commonwealth Fair Work Act 2009, administered by the Fair Work Ombudsman.
- Maximum Standard Hours: The maximum standard working week is 38 hours (NES), after which an employer can only request or require ‘reasonable’ additional hours (Section 62 of the Fair Work Act 2009). Employees may refuse unreasonable requests.
- Source of Rates: Overtime pay rates are legally stipulated within the applicable Modern Award (industry-specific legal minimums) or a registered Enterprise Agreement.
- Common Rate Structure: While the exact rates and thresholds vary by Award, a typical structure for weekday overtime is:
- Minimum of 150% (Time and a half) of the base rate for the initial period (often the first 2 or 3 hours).
- Minimum of 200% (Double time) of the base rate for overtime hours worked after that initial period.
(Note: Overtime rates are set mainly by the relevant Modern Award or Enterprise Agreement; percentages vary by industry.)
- Penalty Rates: Higher rates (penalty rates) are mandated for work performed on weekends, public holidays, or during night shifts. For instance, Sunday work is often paid at 200%, and Public Holiday work at 250%.
Leave
Annual Leave (vacation)
In general, all employees are entitled to a minimum of 4 weeks paid leave (5 weeks for shift workers). Furthermore, the NES states that awards, contracts/agreements cannot contain any less than this minimum, but they can contain a greater number of days.
The NES also states that if the period during which an employee takes annual leave includes a public holiday, a period of another kind of leave (including sick leave, personal leave, etc.), that time is not regarded as annual leave. Annual leave is paid at the same rate as the regular salary rate, but in exceptions within the employee’s award/contract/ workplace agreement, there can be an additional annual leave payment due of up to 17.50%.
In addition, each state in Australia has an entitlement for employees to have long service leave. Victoria employees are entitled to take their long service leave after at least seven years’ continuous employment with one employer, which accrues at a rate of one week for every 60 weeks of continuous employment.
Paid time off
Under Australia’s National Employment Standards (NES) in the Fair Work Act 2009, annual leave accrues progressively and must roll over year to year – there is no automatic “use-it-or-lose-it” expiry of unused annual leave. Unused annual leave continues to carry forward until taken or paid out on termination. Employers may manage high leave balances (e.g., by directing employees to take leave) where permitted by relevant awards, enterprise agreements, or reasonable business requirements, but they cannot lawfully cancel or forfeit accrued statutory annual leave by a blanket policy.
Public Holidays
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 26 January 2026 | Monday | Australia Day | Standard holiday |
| 9 March 2026 | Monday | Labour Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 4 April 2026 | Saturday | Saturday before Easter Sunday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 25 April 2026 | Saturday | Anzac Day | Standard holiday |
| 8 June 2026 | Monday | King’s Birthday | Standard holiday |
| 25 September 2026 | Friday | Friday before the AFL Grand Final | |
| 3 November 2026 | Tuesday | Melbourne Cup Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
| 28 December 2026 | Monday | Additional Boxing Day Holiday | Standard holiday |
* Melbourne Cup Day is observed in all of Victoria unless alternate local holiday has been arranged by non-metro council.
Sick Days
The NES entitles permanent employees to 10 days paid sick leave and two days of paid compassionate leave a year (personal/carers leave).
An employee may take the paid personal/carer’s leave if they are unable to work because of illness or injury or if they provide care or support to a member of their immediate family.
Maternity Leave
See parental leave below.
Paternity Leave
See parental leave below.
Family/Parental Leave
The paid parental leave provides financial support to eligible working parents of newborn or recently adopted children. Parental leave is up to 24 weeks (120 days). The leave may be taken by either parent at the time of birth, adoption, or surrogacy. Each partner is required to take at least 2 weeks. An employee is not entitled to parental leave under the NES unless they have 12 months of continuous service or are a “long-term casual employee.” The casual employee must have been employed regularly and systematically for at least 12 months.
Parental leave is paid by the government at the national minimum weekly wage rate. As of 1 July 2024, 2 weeks of payment will be added to Parental Leave Pay each year to 2026. This will increase the overall length of the Paid Parental Leave scheme by 6 weeks from July 2026.
Employers can also provide for paid parental leave in registered agreements, employment contracts, and workplace policies which do not affect the employee’s eligibility for the Australian government’s paid parental leave scheme so the employee can be paid both.
In addition, employees who have worked for more than 12 months are entitled to at least 12 months of unpaid parental leave if the employee is or will be responsible for caring for a child or adopted child under 16 years old.
Parents who request unpaid leave for a period greater than 12 months will have a stronger right to request an extension of unpaid parental leave. If an employee has already taken 12 months of unpaid leave, they can request a further 12 months of unpaid leave (24 months in total). This is provided that their partner has not already taken 12 months of unpaid leave.
All salary payments are initially made by the employer and later reimbursed by the government.
Other Leave
The NES stipulates employees are entitled to be absent from work for three main reasons, all to undertake community service activities.
- Paid jury duty. When employees take leave for jury service, they receive jury service pay from the government and employers then top this up to their usual pay for up to 10 days at the rates set at the time.
- Voluntary emergency management activity (unpaid leave).
- Activity in community service that the regulations prescribe (unpaid leave).
The leave period includes reasonable travel and rest time prior to and following the eligible activity, and the employee must aim to provide as much prior notice and information as possible.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
There are several complex laws relating to termination processes in Australia. To ensure the correct process is followed, employers must adhere to the four key areas below to ensure the termination of an employee for the right reasons.
- Capacity – if an employee lacks the ability or capacity to complete the job
- Performance – unsatisfactory performance of the employee, which is outlined clearly to the employee with the opportunity for them to rectify their conduct
- Misconduct – failing to adhere to workplace standards, or if the employee is involved in serious misconduct
- Redundancy – if the job the employee is completing is no longer necessary for the business, or technological change has made their role unnecessary
Employees must have completed six months of service (12 months for a small company) before they can make an unfair dismissal claim.
An additional legal requirement for the employer is to provide the employee with an employment termination letter that must include confirmation of:
- the reason for the termination
- the date of the employee’s last day of work
- the fixed number of payments/entitlements etc. and any unpaid wages the employee will receive as final pay
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| For most employees covered by the national system: unless an award or agreement sets a specific interval, pay must be made at least once a month. | The employer must pay all wages and other entitlements when employment ends. Many awards specify payment within 7 days after termination as a guideline. | Payment may be by cash, cheque or electronic funds transfer (EFT/bank transfer) — there is no universal statute that all wages must be deposited into a bank account for all employees in Victoria. |
Notice Period
The Fair Work Act 2009 (Cth) stipulates that the minimum notice periods for termination varies with the employee’s length of service as below:
- Less than 12 months of employment: 1 week’s notice
- 1-3 years of employment: 2 weeks’ notice
- 3-5 years of employment: 3 weeks’ notice
- 5 + years of employment: 4 weeks’ notice
In addition, if an employee is over 45 years of age and has completed at least two years’ continuous service, there is a requirement for an additional week of notice.
However, it is common practice in Australia for the award/contract/workplace agreement to have a more extended period of notice than the minimum requirement; this is commonly four weeks’ notice. Despite the minimum notice periods provided in the Fair Work Act 2009 (Cth), employees who have no notice period specified in their contract of employment may be entitled to what is called in Australia ‘a reasonable period of notice’.
The reasonable period of notice will set a notice period of greater than the norm, and minimum, for employees with long lengths of service and/or where equivalent jobs/skills are in short supply.
Severance Pay
The entitlement to severance as a result of termination because of redundancy is based on a sliding scale and calculated by reference to the length of the employee’s period of continuous service on termination.
| Period of continuous service | Pay |
| Less than 12 months of service | 0 |
| 12 months to less than 2 years of service | 4 weeks’ pay |
| 2 years of service to less than 3 years of service | 6 weeks’ pay |
| 3 years of service to less than 4 years of service | 7 weeks’ pay |
| 4 years of service to less than 5 years of service | 8 weeks’ pay |
| 5 years of service to less than 6 years of service | 10 weeks’ pay |
| 6 years of service to less than 7 years of service | 11 weeks’ pay |
| 7 years of service to less than 8 years of service | 13 weeks’ pay |
| 8 years of service to less than 9 years of service | 14 weeks’ pay |
| 9 years of service to less than 10 years of service | 16 weeks’ pay |
| 10 years and over | 12 weeks’ pay |
There are some exceptions to this entitlement. An employment contract, enterprise agreement, or modern award may also specify a greater entitlement. Termination entitlements will be processed and paid on the employee’s final day of employment.
Probation Period
The commonly used probation period is three to six months (12 months for a small company), although this can be higher or lower based on the award/contract/workplace agreement. The Fair Work Act 2009 (Cth) does not refer to probation periods. Still, it stipulates that the award/contract/workplace agreement must clearly specify the period of probation set and how and when performance is to be reviewed.
Immigration
Under the Migration Act 1958 and the Migration Regulations 1994, employers have a legal obligation to ensure all employees have the right to work in Australia. Even if they already live in Australia and are not Australian citizens, they may be permanent residents or New Zealand citizens on a special class of visa that allows them to remain in Australia indefinitely or have a temporary visa. All these types of visas need to be checked regularly by the employer via the Department of Home Affairs’ online verification system, the Visa Entitlement Verification Online (VEVO).
If employers cannot find the appropriate person with the required skills/experience for a job, applications can be made to sponsor workers temporarily or permanently. However, skilled workers must generally be included on the “Skilled Occupations List,” and the length of sponsorship is set by the length of time in the sponsored visa.
There are several ways to sponsor a skilled foreign worker:
- Sponsor a skilled worker for permanent migration through the Employer Nomination Scheme (ENS) or the Regional Sponsored Migration Scheme (RSMS)
- Sponsor a worker on a temporary visa through the Temporary Skill Shortage Visa (subclass 482), which allows overseas people to come to Australia to work for up to 4 years
- Take over the sponsorship of temporary migrants already in Australia on skilled work visas
Enter a labor agreement that allows you to employ several overseas skilled workers on a permanent or temporary basis by entering a formal labor agreement with the Australian government if the job is not on the Skilled Occupations List.
VAT
General
The standard rate of GST in Australia is 10.00%.
Stay up to date on payroll & employment law changes
Version History
Medicare is now 1.00%
Superannuation increased to 10.50%.
The national minimum wage is now 21.38 AUD per hour and 812.44 AUD per month.
Questions & Answers
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Payroll and Benefits Guide
in Australia – Victoria
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 26 January 2026 | Monday | Australia Day | Standard holiday |
| 9 March 2026 | Monday | Labour Day | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 4 April 2026 | Saturday | Saturday before Easter Sunday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 25 April 2026 | Saturday | Anzac Day | Standard holiday |
| 8 June 2026 | Monday | King’s Birthday | Standard holiday |
| 25 September 2026 | Friday | Friday before the AFL Grand Final | |
| 3 November 2026 | Tuesday | Melbourne Cup Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day | Standard holiday |
| 28 December 2026 | Monday | Additional Boxing Day Holiday | Standard holiday |
How soon can a female employee return to work after giving birth?
A woman can return to work after giving birth at any time. There is no law or rule stating how soon she can do so.