Employee Benefits in Australia: What HR Professionals and Global Hiring Managers Need to Know in 2025

Expanding into Australia offers access to a highly skilled, English-speaking workforce and a stable regulatory environment. But navigating its employee benefits landscape requires attention to detail and a strong grasp of national and state-level legal obligations. This guide covers eligibility, mandatory entitlements, popular supplemental perks, and strategic steps for setting up a competitive, compliant benefits program.

Partnering with an Employer of Record (EOR) in Australia simplifies compliance and supports efficient expansion.

Who Qualifies for Statutory Benefits in Australia

Statutory employee benefits apply to most full-time, part-time, and fixed-term employees under the Fair Work Act 2009. These employees are covered by the National Employment Standards (NES), and benefit from access to Medicare and the national superannuation system.

Eligibility: Most entitlements begin on day one, assuming the worker earns above the national minimum wage and is not classified as a contractor.

Who Is Excluded?

• Independent Contractors: Self-employed and not entitled to NES benefits unless misclassified.
• Casual Workers: May have pro-rata entitlements, but often limited.
• Interns and Agency Temps: Conditional access based on contract structure and hours worked.

Always consult the Fair Work Ombudsman and Services Australia for current eligibility rules.

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Statutory Employee Benefits in Australia

Employers must provide these legally mandated benefits:

• Minimum Wage: As of July 2025, AUD $24.10/hour or $915.90/week for a 38-hour week. Adjusted annually by the Fair Work Commission.
• Superannuation Contributions: Mandatory employer contribution of 11% of ordinary time earnings to a registered super fund. Managed through SuperStream standards.

Pro Tip

“To handle superannuation and long service leave accurately, we lean heavily on EOR systems that align entitlements to each state. It saves us from costly recalculations later.” — Robbin Schuchmann, Co-founder of EOR Overview

• Annual Leave: 4 weeks of paid time off per year (5 for shift workers), accruable and carried forward.
• Parental Leave: Up to 12 months of unpaid leave with potential extension. Paid Parental Leave may be available through Centrelink.
• Personal/Carer’s Leave: 10 days of paid leave annually, for illness or to care for an immediate family member.
• Community Service Leave: Unpaid time off for jury duty or emergency response.
• Notice and Redundancy Pay: Structured by tenure, outlined in NES.
• Occupational Health & Safety (OHS): Must meet Safe Work Australia standards.
• Anti-Discrimination Compliance: Adherence to the Australian Human Rights Commission Act.

Leave Entitlements in Australia

Australian law promotes work-life balance through robust leave protections:

• Annual Leave: 4 weeks for most full-time employees. Leave accrues over time and is portable across employers.
• Public Holidays: Paid leave on national and state/territory holidays.
• Sick Leave: 10 days of paid sick/carer's leave per year. Unused days roll over.
• Parental Leave: Includes up to 12 months unpaid leave and potential for paid leave through government programs.
• Long Service Leave: Eligibility after 7–10 years, varies by state. Must track accrual based on local legislation.

Pro Tip

“State-by-state variations in long service leave are tricky. We use HR software with jurisdiction-specific rules built in, and train staff to identify milestone triggers.” — Rasmus Nørgaard, Group CMO at TITAN Containers

• Carer’s Leave: Part of personal leave. Used for care of dependents or immediate family.

Common and Additional Employee Benefits in Australia

While not legally required, many Australian employers offer a range of supplementary benefits to enhance employee satisfaction, loyalty, and retention.

These voluntary perks are increasingly seen as a baseline in competitive sectors—especially in tech, finance, and professional services.

Here’s a summary of the most common non-statutory benefits adopted by Australian companies:

• Supplemental Health Insurance: Covers services not included in Medicare, such as dental, optical, and private hospital.
• Superannuation Top-Ups: Contributions above the 11% minimum help with retirement planning.
• Company Cars & Allowances: Especially for senior roles or sales.
• Performance Bonuses: KPI-based incentives that support productivity.
• Remote Work Support: Tech stipends for home offices, internet, and virtual tools.
• Wellness Programs: Include gym memberships, EAPs, mental health coverage, and wellness apps.
• Childcare Assistance: Employer-supported childcare or subsidies, still rare but increasing in family-first organizations.

Pro Tip

“For fringe benefits and salary packaging, we always conduct annual FBT audits. It ensures we avoid tax errors and lets employees benefit fully from available perks.” — Georgi Petrov, CMO at AIG Marketer

Benefits That Attract Top Talent in Australia

Leading employers in Australia differentiate themselves with benefits that support wellbeing, flexibility, and long-term growth.

These modern, lifestyle-oriented offerings are increasingly expected, particularly among Gen Z and millennial workers.

• Paid Parental Leave: Employer-funded leave exceeding the government’s basic provision.
• Private Health Cover: Premiums subsidized or fully paid.
• Flexible Work Arrangements: Hybrid schedules, 9-day fortnights, or fully remote.
• Wellbeing Stipends: Allowances for therapy, meditation, fitness, or nutrition.
• Professional Development Budgets: Annual funds for upskilling, courses, and certifications.
• Stock Options or Profit-Sharing: Especially in high-growth companies or startups.
• Volunteer or Birthday Leave: Simple extras that boost morale and retention.

Pro Tip

“Providing super fund transparency and allowing employee choice has boosted our engagement scores by 20%. Benefits education really matters.” — Alex Cornici, Marketing Coordinator, Insuranks【76†source】

How to Set Up and Manage Employee Benefits in Australia

Setting up benefits in Australia requires planning, compliance awareness, and cultural alignment. Here’s how to build a compliant and attractive program:

1. Know the Law: Understand the NES and relevant Modern Awards by sector.
2. Benchmark Packages: Use market data to ensure your offers are competitive.
3. Automate Super and Leave: Implement HRIS and payroll platforms that handle SuperStream compliance and leave accrual by state.
4. Partner with an EOR in Australia: Ideal for companies expanding without a local entity.
5. Document & Communicate Clearly: Include all benefits in contracts, onboarding kits, and handbooks.
6. Review Regularly: Annual audits for FBT, super, and leave policies keep you compliant.

Staying Compliant with Australian Employment Law

Non-compliance with Australia’s employment laws can lead to serious legal, financial, and operational consequences for your business. Employers must ensure that hiring, payroll, benefits, and worker classifications are handled in accordance with Australian labor regulations to avoid violations that could impact business continuity and reputation.

Key compliance considerations include:

• Worker Classification: Accurately distinguishing between employees and independent contractors to ensure appropriate entitlements and obligations.
• Minimum Wage and Awards: Adhering to the national minimum wage and relevant modern awards to prevent underpayment issues.
• Superannuation Contributions: Ensuring timely and correct superannuation payments to employees' nominated funds.
• Leave Entitlements: Providing the correct leave accruals and entitlements as per the National Employment Standards.
• Record Keeping: Maintaining accurate and up-to-date employment records, including payslips and work hours.
• Workplace Health and Safety: Complying with occupational health and safety regulations to provide a safe working environment.

Regular audits and consultations with legal professionals or HR compliance experts can help identify and rectify potential issues before they escalate.

Get Support Setting Up Employee Benefits in Australia

Creating a competitive benefits program in Australia means aligning with cultural norms and regulatory expectations.

An Employer of Record in Australia can simplify payroll, entitlements, and compliance across states and industries.

10 Best Australian Employer of Record Service Shortlist

Here's my pick of the 10 best software from the 10 tools reviewed.

1. 1. Deel — Best for offering local health benefits to Australian EOR employees
2. 2. RemoFirst — Best for budget-conscious remote team expansion
3. 3. Borderless AI — Best AI-driven EOR platform
4. 4. G-P — Best for flexible global payment options
5. 5. Native Teams — Best for an HR compliance documentation hub
6. 6. Skuad — Best for hiring and paying talent in Australia
7. 7. Remote — Best for competitive and cost-effective benefits packages
8. 8. Atlas HXM — Best EOR partner for enterprise organizations
9. 9. Agile Hero — Best for complying with local laws
10. 10. Omnipresent — Best for hiring without setting up a local entity

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