Professional Employer Organization (PEO) in Australia

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Introduction

Who wouldn’t want to live in Australia? With iconic beaches, temperatures that rarely drop below 20ºC, and four of the world’s 10 most liveable cities, it’s no surprise that many professionals and remote workers are choosing to live down under. 

The Australian workforce is a massive talent pool just waiting to be tapped into –– and there’s no reason that geography should stop you from recruiting Aussie workers. 

For startups and small businesses, it may feel like you’re confined to hire only within the country where you’re based. Payroll regulations and tax laws can seem like stumbling blocks that are stopping you from building a global company.

But with a PEO, it’s not just achievable, it’s easy. 

Professional employer organizations like Skuad work with organizations to hire, onboard, and pay employees in Australia, regardless of where you’re based. 

Having a global company, built by employees with different backgrounds and worldviews, is a true asset for your business. No one wants to let international borders prevent them from building up a highly-skilled workforce, which is where PEOs come in.

What is a PEO?

Put simply, a professional employer organization (PEO) takes care of all HR matters for small and medium businesses. When a growing business doesn’t have the time or resources to deal with employee management in-house, that’s when they’ll truly benefit from partnering with a PEO. 

Say you’ve found the perfect candidate for a job opening. They’ve got the experience and creative mind you need, with an excellent portfolio. But… they live in Melbourne. 

You don’t want to let this opportunity slip away, but you just don’t have the bandwidth to deal with international hiring laws. A PEO can come in and take all that off your plate. 

At Skuad, we take over managing payroll, sourcing and distributing competitive employee benefits packages, and ensuring that your business complies with the relevant local legislation wherever your employees are based. 

With the help of a PEO, you can build a global team, with employees stationed all over the world –– including Australia! If this sounds like something that could benefit your business, get in touch with Skuad today to chat through any questions you may have.

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What are the benefits of using a PEO provider in Australia?

Working with a PEO in Australia opens up a lot of opportunities for your business.  If you want to grow and diversify your workforce, global hiring is the best option. And to do that without any hassles, a PEO is a valuable asset. 

Hire the best Australian talent

As soon as you use a PEO provider, you instantly open up a massive number of opportunities for your SMB. You want the best for your business, right? It’s time to go global.

Using a PEO makes it incredibly easy to bring on a team of remote workers, no matter where they’re based in the world. Australia consistently ranks among the best countries to live in, and Melbourne has been found to be the best city globally for remote working. 

Whether you’re hiring an expat who’s settled in Oz or a local who’s keen to work for a global company, Australia is one of the best places to start growing your international workforce. 

Become a more competitive employer

Partnering with a PEO will allow you to give your employees access to more benefits than you may have been able to on your own. A PEO knows exactly what employees in each market are looking for, and what to offer them to make you stand out as the business they should choose. 

Expand your employee benefits –– and compete with other local and global companies –– by using a PEO to build your workforce. 

Save on unnecessary costs 

Hiring talent in Australia without the help of a PEO will cost you an arm and a leg. Not to mention that you’d be opening yourself up to potential fines and legal ramifications for any non-compliance — even if it’s accidental. 

Become experienced in a new market

If you’re considering expanding into new markets, Australia is a great place to start. From a business perspective, it’s a strong economic country currently experiencing growth. It’s similar enough to the US and UK markets while being a good stepping stone before expanding into the surrounding Asian markets. 

By bringing Australians into your company, you’ll be able to tap into their insights about the country and market in order to make more informed decisions for sustainable growth. 

Remain compliant

The number one, most important thing when hiring internationally is to remain compliant with local laws. Every country has its own hiring and payroll regulations, and if you do it wrong you could be facing some pretty hefty penalties. From retirement funds to sick days, there are a lot of things you need to be across. 

And if you’re looking to hire multiple employees in multiple markets, it can be tricky to navigate everything correctly. Working with a PEO helps you ensure you’re dotting all your is and crossing all your ts when it comes to legal compliance. 

At Skuad, we’ve built a team of compliance-minded HR professionals. You can rely on us to navigate the ins and outs of Australian employment law. Get in touch today.

Some of the specifics that you should know when hiring in Australia include:

Payroll

  • Australia’s national minimum wage is $19.84 per hour.
  • Payments are made in AUD. Most companies pay salaries by direct deposit, every two weeks, though some choose to pay monthly.
  • Full-time employees work 38 hours per week, any more is considered overtime.
  • Probation periods are up to the employer but are usually three or six months.
  • Bonuses are common in Australia to recognize performance or service.
  • Minimum termination notice periods vary from one week to four weeks, depending on the length of the employment.

Tax and employer contributions

  • Employers must contribute 9.5% of the employee’s salary to their retirement fund, which is called superannuation.
  • Payroll taxes vary between Australian states.
  • Australia operates under a Pay as You Go tax system. Employers withhold the required tax amount from their employees’ paychecks, which are then paid directly to the government. 
  • Companies are required to present employees with their payslip within one working day of getting paid.

Paid time off

  • All employees must receive a minimum of four weeks’ leave, which often rolls over year on year. 
  • All employees also receive 10 days’ sick/carer’s leave. 
  • Public holidays vary from state to state, but on average there are ten days per year where employees are not required to work. 

Learn more about how Skuad’s PEO services can help you navigate the complexities of global hiring by booking a demo today.

What does it cost to build a team in Australia?

Here, you have two options: incorporating a business in Australia or partnering with a PEO.

Company Incorporation in Australia

If you’re keen to grow your business in Australia, one way to do so is by opening an in-country legal entity, which would operate like a branch of your company. 

While it’s a relatively simple process, there are a ton of steps: fill out some forms, choose a name, register your company, set up an Australian Business Number (ABN), register for a tax number (TFN), and pay the associated fees. 

It typically costs around $700 to set up, with ongoing yearly fees to keep the business going.

Plus then, you can’t forget about the little things, which add up quickly. We’re talking banking fees, ongoing legal support, local business navigation advice, and much more. 

The alternative? Partner with a PEO service in Australia instead. 

PEO in Australia

With an Australian PEO you can start hiring Australian workers immediately, without opening an entity. 

Costs vary between PEO providers. With Skuad, you can get started for free and cancel at any time. 

When you partner with Skuad, we’ll get you started right away. We’ll allow you to onboard and pay international employees, starting from only $19 per month. That cost includes the guarantee of local compliance, giving you peace of mind, and ensuring that your employees are getting the best contract possible. 

We also provide employer of record services, where we hire international employees on your behalf. This includes managing payroll, benefits, and compliance, for which prices start from $199 per month.

If you’re looking for a responsible and sustainable way to recruit the best talent for your SMB, partnering with a PEO is the way to go. We’re here to shoulder the legal and bureaucratic side of things, so you can focus on doing everything you need to grow your company.

Book in for a demo and see what Skuad is all about

If you’ve already got your eye on the Australian market, don’t waste another minute! Book in for a demo of Skuad’s global PEO solution right away and we’ll show you exactly how easy it is to hire and onboard new workers from around the world.

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