Australia has become one of the most attractive destinations for global companies expanding into the Asia-Pacific (APAC) region. With its highly skilled workforce, strong economy, advanced infrastructure, and strategic location bridging Asia and the West, hiring in Australia unlocks major opportunities. Key industries like technology, finance, healthcare, mining, and logistics are thriving, supported by high productivity and robust legal protections.
At the same time, hiring in Australia comes with challenges due to strict labor laws, complex payroll obligations, and mandatory benefits such as superannuation and leave entitlements. Setting up a local entity can take months and requires navigating HR, tax, and legal complexities. This is where a Professional Employer Organization (PEO) or Employer of Record (EOR) in Australia becomes essential helping companies manage payroll outsourcing, compliance, HR administration, and global contractor management seamlessly, without the cost and risk of entity setup.
Table of Contents
- What Is a PEO in Australia?
- PEO vs EOR in Australia — What’s the Difference?
- Why Use a PEO in Australia Instead of Setting Up an Entity?
- Key Employment Insights in Australia (Handled by Asanify)
- No Entity? No Problem
- How a PEO Helps With Payroll, Tax & Benefits in Australia
- Australian Labor Laws Made Simple With a PEO
- When to Choose a PEO Over Other Hiring Models
- What to Look for in an Australian PEO Partner
- Asanify’s Advantage as a PEO in Australia
- What Does It Cost to Build a Team in Australia?
- Why Choose a PEO in Australia?
- Ready to Hire in Australia? Here’s What to Do Next
- FAQs
What Is a PEO in Australia?
A Professional Employer Organization (PEO) is a strategic HR partner that co-employs staff with your company, helping you handle essential functions such as payroll, compliance, benefits, and HR operations. In Australia, a PEO can support you by managing:
- Payroll outsourcing with gross-to-net calculations
- Superannuation contributions and employee benefits
- Employment contracts aligned with Australian labor laws
- Compliance with the Fair Work Act and local labor regulations
- Tax filings and social contributions
- HR software tools for automated employee management
With Asanify PEO services in Australia, you can expand into new markets, hire in Australia quickly, and scale confidently without worrying about compliance risks.
PEO vs EOR in Australia – What’s the Difference?
| Feature | PEO in Australia (Co-employment) | EOR in Australia (Legal Employer) |
| Legal Employer | Client + PEO (shared responsibility) | EOR provider (sole legal employer) |
| Entity Requirement | Requires local entity | No entity required |
| Payroll & Benefits | Managed jointly with client | Fully managed by EOR |
| Best For | Companies with existing entity | Startups/scaleups testing the market |
| Immigration & Visas | Client-led | Managed by EOR provider |
| Contract Ownership | Client maintains contracts | EOR issues compliant contracts |
| Transition to Entity | Already structured | Easy migration supported |
Why Use a PEO in Australia Instead of Setting Up an Entity?
Setting up a business entity in Australia requires weeks of paperwork, legal registrations, tax filings, and HR infrastructure. A PEO eliminates these burdens and enables you to:
- Hire top talent quickly without delays in entity registration
- Offer competitive and compliant benefits to employees from day one
- Save costs by avoiding expensive legal and tax setup
- Test the Australian market before committing to long-term operations
- Focus on growth while Asanify handles HR and compliance
Suggested Read: Remote Employees Onboarding Checklist with EOR in Australia
Key Employment Insights in Australia (Handled by Asanify)
Payroll
- Payroll is usually processed monthly or biweekly
- Superannuation (retirement savings): minimum 11.5% (2025) employer contribution
- Employer on-costs typically range between 25–30% of salary
Leave Policies
- 20 paid annual leave days
- 10 national public holidays
- 10 personal/sick leave days
- Paid parental leave schemes available
- Long service leave varies by state
Benefits & Perks
- Superannuation fund contributions
- Health and wellness allowances
- Performance bonuses and profit-sharing
- Meal and transport allowances in some industries
Income Tax Brackets (2025)
- 0% up to AUD 18,200
- 19%: AUD 18,201–45,000
- 32.5%: AUD 45,001–120,000
- 37%: AUD 120,001–180,000
- 45%: AUD 180,001 and above
No Entity? No Problem
With Asanify acting as your PEO in Australia, you don’t need to establish a local entity to begin hiring. We serve as your compliance partner, managing employment regulations, payroll, and HR processes so you can focus on expanding your business.
- Start hiring in days instead of months
- Eliminate risks of worker misclassification under Australian law
- Scale your presence across Sydney, Melbourne, and beyond at a fraction of the cost
How a PEO Helps With Payroll, Tax & Benefits in Australia
Managing payroll in Australia requires careful handling of tax, social contributions, and statutory benefits. A PEO manages:
- Payroll outsourcing and processing
- Superannuation fund contributions
- Filing PAYG (Pay-As-You-Go) tax with the ATO
- Managing bonuses and incentives
- Administering statutory and additional benefits
Australian Labor Laws Made Simple With a PEO
Australia’s Fair Work Act governs employment practices and is strictly enforced. A PEO helps you comply with:
- Standard workweek: 38 hours
- Overtime regulations: Award-based pay rules
- Probation periods: Typically 6 months
- Termination rules: Notice periods from 1–4 weeks
- Severance pay: Based on years of service
- Collective agreements: Industry and enterprise awards
When to Choose a PEO Over Other Hiring Models
A PEO is ideal in Australia if you:
- Need to test the market without setting up an entity
- Plan to hire a small team for short/medium-term projects
- Want to reduce HR costs while maintaining compliance
- Require agility to scale quickly in new regions
What to Look for in an Australian PEO Partner
When evaluating a PEO, consider:
- Local expertise in Australian labor law
- Speed of onboarding (under 7 days)
- Transparent pricing without hidden fees
- Payroll outsourcing capabilities with automation
- Support for global contractor management
- Visa and work permit assistance
Asanify’s Advantage as a PEO in Australia
Asanify goes beyond traditional PEO services by providing:
- End-to-end onboarding within 48 hours
- Automated payroll outsourcing and HR software
- Real-time compliance monitoring
- Transparent pricing and scalable solutions
- Contractor and employee management on one platform
- Dedicated local compliance experts
What Does It Cost to Build a Team in Australia?
The total cost of building a team in Australia depends largely on the path you choose. Companies usually decide between two options:
- Establishing a legal entity in Australia, or
- Partnering with a Professional Employer Organization (PEO) such as Asanify.
Option 1: Setting Up a Local Entity
Creating your own company in Australia provides full operational control but requires significant time, investment, and legal compliance. The setup process includes:
- Registering with the Australian Securities and Investments Commission (ASIC)
- Obtaining an Australian Business Number (ABN) and Tax File Number (TFN)
- Setting up a local corporate bank account
- Appointing directors and shareholders under Corporations Act requirements
- Registering with the Australian Taxation Office (ATO) for PAYG, GST, and superannuation obligations
- Ensuring compliance with the Fair Work Act and industry-specific modern awards
- Consulting legal experts for corporate structuring and employment law compliance
Estimated Timeline: 8–12 weeks
Estimated Investment: AUD 15,000–AUD 40,000+ in upfront legal, administrative, and compliance costs
This route is best for enterprises with long-term, large-scale operations and permanent market presence in Australia.
Option 2: Partnering with a PEO (Recommended)
For companies that prefer a faster and cost-effective alternative, engaging a PEO like Asanify is the ideal choice. Without setting up a local entity, you can hire, manage, and pay employees in full compliance with Australian laws—within days.
Asanify’s PEO solution in Australia includes:
- Locally compliant employment contracts aligned with Fair Work standards
- Management of statutory benefits such as superannuation and paid leave
- Monthly payroll outsourcing and tax filings with the ATO
- End-to-end onboarding and employee documentation
- HR support covering policies, benefits, and compliance monitoring
- Ongoing legal and tax advisory to reduce risks
Indicative Monthly Pricing (2025):
| Service Type | Starting From (Per Employee/Month) |
| PEO Solution | $49 USD |
| Employer of Record (EOR) | $199 USD |
Why Choose a PEO in Australia?
- Onboard employees in less than a week
- Eliminate entity setup costs and delays
- Stay compliant with complex labor laws
- Scale operations flexibly across Sydney, Melbourne, Brisbane, and beyond
- Provide both statutory and competitive benefits seamlessly
Suggested Read: Understanding Labour Laws in Australia A Complete Guide 2025
Ready to Hire in Australia? Here’s What to Do Next
Hiring in Australia doesn’t have to be complicated. To get started, simply schedule a free consultation with Asanify to discuss your hiring goals. We’ll walk you through our Australia hiring compliance checklist, ensuring you’re aligned with local labor laws and Fair Work standards from day one. With our automated platform, you can onboard and manage your team in under a week. You’ll also gain access to related services such as visa sponsorship, payroll outsourcing, and remote hiring support everything you need to scale your workforce in Australia quickly and compliantly.
FAQs
A PEO co-employs with your entity, while an EOR is the legal employer for clients without an entity.
Typically within 5–7 business days.
Superannuation, paid leave, public holidays, and compliance with the Fair Work Act.
Yes, including payroll processing, PAYG tax filings, and superannuation contributions.
Yes, for PEO. No, if you choose an EOR model.
Yes, Asanify provides global contractor management solutions with compliance support.
Technology, finance, healthcare, mining, and logistics.
Starts at $49 per employee/month, while EOR begins at $199 per employee/month.
Yes, Asanify supports smooth transitions.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
