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Employment Cost Calculator in Australia

Employment Cost Calculator in Australia

Hiring in Australia? Instantly calculate your total cost to employ — taxes, benefits, and more

Updated on October 1, 2025

Australia employment-cost-calculator overview

Employment Cost Calculator for Australia

Calculate your complete hiring costs for Australia employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.

Calculate Employment Costs

Australia

Employment Cost Breakdown

Select a country and enter a salary to see the employment cost breakdown

Salary Benchmarking Report for Australia

1. Employment Costs by Experience Level

Employment Costs by Experience Level in Australia in 2025

Experience Level Base Salary Range (AUD) Base Salary Range (USD) Total Cost to Employer (AUD) Total Cost to Employer (USD)
Entry Level (0-2 years) A$55,000 - A$75,000 $36,850 - $50,250 A$62,700 - A$85,500 $42,009 - $57,285
Junior (2-5 years) A$75,000 - A$95,000 $50,250 - $63,650 A$85,500 - A$108,300 $57,285 - $72,561
Mid-Level (5-8 years) A$95,000 - A$130,000 $63,650 - $87,100 A$108,300 - A$148,200 $72,561 - $99,294
Senior (8-12 years) A$130,000 - A$180,000 $87,100 - $120,600 A$148,200 - A$205,200 $99,294 - $137,484
Lead/Principal (12+ years) A$180,000 - A$250,000 $120,600 - $167,500 A$205,200 - A$285,000 $137,484 - $190,950

Exchange rate: 1 AUD = 0.67 USD (January 2024). Total Cost to Employer includes mandatory superannuation (11.5%), payroll tax (4.85%), and workers' compensation insurance (1.5%).

2. Average Total Employment Costs by Role (Annual)

Australian Employment Costs by Role (2024)

Based on current market data for major metropolitan areas in Australia. Exchange rate used: 1 AUD = 0.66 USD

Role Base Salary (AUD) Base Salary (USD) Total Cost to Employer (AUD) Total Cost to Employer (USD)
Software Engineer 120,000 79,200 144,600 95,436
Product Manager 135,000 89,100 162,675 107,366
Marketing Manager 115,000 75,900 138,575 91,460
Sales Representative 85,000 56,100 102,425 67,601
HR Manager 110,000 72,600 132,550 87,483
Finance Manager 130,000 85,800 156,650 103,389
Operations Manager 125,000 82,500 150,625 99,413
Data Scientist 125,000 82,500 150,625 99,413
UX Designer 105,000 69,300 126,525 83,507
Customer Success Manager 95,000 62,700 114,475 75,554

Total Cost to Employer includes mandatory superannuation (11.5%), workers' compensation insurance, payroll tax, and other statutory requirements.

Common Additional Benefits in Australia:

  • Health insurance supplements to Medicare
  • Annual leave loading (17.5% additional payment on vacation pay)
  • Mobile phone allowance
  • Flexible working arrangements
  • Professional development allowances
  • Performance bonuses (typically 10-20% of base salary)
  • Car allowance (for senior roles)
  • Employee share schemes (particularly in tech companies)

Note: All figures are approximations based on current market data. Actual salaries may vary based on specific company policies, location within Australia, and other factors. Currency conversions are approximate and subject to change.

Employer Tax Contributions

Tax Type Rate Base
Superannuation Guarantee (SG) 12% Employee's ordinary time earnings, capped at $62,500 per quarter.
Fringe Benefits Tax (FBT) 47% Grossed-up taxable value of non-cash benefits.
Pay As You Go (PAYG) Withholding Employee's marginal tax rate Employee's salary or wages.
Payroll Tax Varies by state/territory Total Australian taxable wages exceeding threshold (e.g., QLD: 4.75% for wages up to $6.5M, 4.95% over $6.5M).

Filing & Compliance

  • Superannuation Guarantee (SG): Payments due quarterly by 28 October, 28 January, 28 April, and 28 July.
  • Single Touch Payroll (STP): Report salary/wages, PAYG withholding, and super information to ATO each pay run.
  • Fringe Benefits Tax (FBT): FBT year ends 31 March. Returns and payments are due by 21 May (paper lodgment) or 25 June (tax agent electronic lodgment).

Australian Employee Tax Deductions in 2025

This summary explains the key tax deductions for employees in Australia during the 2024-25 financial year. Note that information is current as of today, 5 February 2025, and might change.

Income Tax

The Australian income tax system operates on a progressive scale, meaning higher earners pay a larger percentage of their income in tax. Tax rates for residents for the 2024-25 financial year are:

  • 0%: Earnings up to $18,200
  • 16%: Earnings between $18,201 and $45,000
  • 30%: Earnings between $45,001 and $135,000
  • 37%: Earnings between $135,001 and $190,000
  • 45%: Earnings above $190,001

These rates do not include the Medicare Levy.

Medicare Levy

The Medicare Levy is a 2% tax on taxable income, which helps fund Australia's public health system. Most taxpayers are required to pay the levy. Certain thresholds and exemptions apply.

Tax Offsets

Tax offsets directly reduce the amount of tax owed. Several offsets are available, including:

  • Low Income Tax Offset (LITO): For low-income earners, with a maximum offset of $700 for taxable incomes below $37,501 (for 2024-25). This offset phases out as income increases, and is not available for incomes above $66,667.
  • Dependant Invalid and Carer Tax Offset: Up to $3,300 for taxpayers supporting a dependant with care needs. Income thresholds and abatement rules apply.
  • Seniors and Pensioners Tax Offset: For eligible seniors and pensioners.
  • Private Health Insurance Offset: Helps cover the cost of private health insurance premiums. The offset is income-tested and varies with age.

Many work-related expenses are deductible, reducing taxable income. Examples include:

  • Home Office Expenses: A fixed rate of $0.67 per hour can be claimed to cover energy, phone, internet, and stationery costs. Alternatively, actual costs can be claimed for certain expenses, including decline in value of assets, repairs, and cleaning of a dedicated home office. Detailed records are required.
  • Work-Related Travel: Travel costs for work purposes, including flights, accommodation, meals, and transport, are generally deductible.
  • Car Expenses: Deductions can be claimed for work-related car use, using either the cents-per-kilometre or logbook method.
  • Other Expenses: Union fees, professional subscriptions, and some work-specific clothing or equipment may also be deductible.

Key Dates and Obligations

  • Tax Return Deadline: 31 October 2025
  • Monthly PAYG Withholding: Ongoing throughout the year. Use the tax withheld calculator to ensure correct amounts are withheld.
  • Single Touch Payroll (STP) Finalisation: 14 July 2025
  • Fringe Benefits Tax (FBT) Return: 21 May 2025 (or 25 June 2025 if lodged electronically by a tax agent). FBT year ends 31 March 2025.
  • Business Activity Statement (BAS): Lodged quarterly, with due dates on 28 October 2024, 28 February 2025, and 28 April 2025. Monthly lodging is also an option.
  • Superannuation Guarantee (SG): Quarterly payments due on 28 January, 28 April, 28 July, and 28 October. The SG rate increases to 12% from 1 July 2025.

It is highly recommended to consult with a registered tax agent for personalized advice. They can provide guidance specific to individual circumstances and help maximize deductions.

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