Australia Employer Cost of Hiring Calculator

Beyond the gross salary, every Australian employer pays the Superannuation Guarantee at 12% of ordinary time earnings, plus workers' compensation insurance (state-based, typically 0.5-1% of wages for an office role) and, if your total payroll is above your state's threshold, payroll tax on top. For a $120,000 hire in NSW already over the payroll tax threshold, that's a total load of roughly 1.18× base salary, or about $21,660 above the quoted salary before any recruitment fee or equipment budget.

No. The Super Guarantee is compulsory on ordinary time earnings up to the maximum contribution base, roughly $260,280/year (indexed annually by the ATO). Above that level, employers aren't required to pay SG on the excess, though many still do voluntarily or as part of a total-package offer. For most tech salaries this cap rarely binds, but it matters for senior and executive hires.

No, and this is the detail most first-time employers miss. Payroll tax is levied on your business's TOTAL Australian wage bill, not per employee, and only once that total crosses your state's annual threshold (from $700,000 in Victoria up to $2,000,000 in the ACT). A small business with two or three employees is very likely under every state's threshold and pays no payroll tax at all. Once you're over it, the rate applies to your full payroll, not just the amount above the threshold.

Rates and thresholds vary by state (2025-26 figures, indexed periodically): NSW 5.45% above $1,200,000, Victoria 4.85% above $700,000 (metro rate; regional Victoria is lower), Queensland 4.75% above $1,300,000, WA 5.50% above $1,000,000. Always confirm the current rate with your state revenue office before budgeting, since thresholds are indexed periodically and some states use a sliding scale rather than a flat rate near the threshold.

Workers' comp is compulsory in every state, but the premium is set per business based on your ANZSIC industry classification, your total wages, and your claims history, not a single national rate. Office-based technology roles sit toward the low end of the risk scale, typically well under 1% of wages, while higher-risk industries pay considerably more. The default shown here is a representative office/tech estimate; your actual premium will come from your state's scheme (icare in NSW, WorkSafe in Victoria, WorkCover in Queensland, and so on) or your insurer.

Agency placement fees in Australia typically run 15-20% of the first year's gross salary for permanent tech roles, with senior and executive searches sometimes higher. A 15% fee is a common benchmark for mid-level roles. This is a one-time Year 1 cost, separate from the ongoing annual cost of employment, which is why this calculator shows it as an optional add-on rather than folding it into the recurring total.

The structures differ more than the totals. The UK adds Employer National Insurance (15% above the Secondary Threshold) and a 3% minimum pension contribution. Ireland adds Employer PRSI (11.05%, no upper cap) and a 1.5% auto-enrolment pension match. Australia's Super Guarantee at 12% sits between the two on its own, but payroll tax (which the UK and Ireland don't have as a direct equivalent) can add a further 4-7% for larger employers once their total payroll crosses the state threshold, so a big Australian employer's true load can end up comparable to or higher than the UK or Ireland once payroll tax applies.