Country guide

HR software for Australian SMBs

Run compliant HR for your Australian business without piecing it together from spreadsheets. Leave, contracts, and records aligned with the Fair Work Act, the National Employment Standards, and state-level long service leave.

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HR in Australia: what you need to know

Australian employment law has a distinctive layered structure. The Fair Work Act 2009 sets the federal framework, the National Employment Standards provide the floor of 11 minimum entitlements, and 121 modern awards add industry- or occupation-specific minimums on top. Enterprise agreements can replace award terms, subject to the Better Off Overall Test.

Payroll obligations sit primarily with the Australian Taxation Office (PAYG withholding and the Superannuation Guarantee) and state revenue offices (payroll tax, workers compensation). The Superannuation Guarantee rate is 12% of ordinary time earnings from 1 July 2025, the final step of a legislated ramp-up.

The biggest near-term change is Payday Super, effective 1 July 2026, which requires employer super contributions to be made at the same time as wages rather than quarterly. Every Australian employer needs a payroll system ready for that transition, plus the SuperStream 3.0 standard that goes live the same day.

Fair Work Act 2009

The Fair Work Act is the core federal employment statute. It establishes the National Employment Standards, modern awards, enterprise agreements, the Fair Work Commission (the tribunal), and the Fair Work Ombudsman (the enforcement agency). For almost every Australian SMB, the FWO is the regulator they deal with in practice.

  • National Employment Standards set 11 minimum entitlements that cannot be reduced by contract, award, or agreement
  • Modern awards add industry-specific minimum pay rates, hours, and penalty rates; correct classification is the biggest compliance risk
  • Seven-year record-keeping requirement for every employee under the Fair Work Regulations 2009
  • Pay slips must be provided within one working day of each payment with all specified fields
  • Small business (fewer than 15 employees) has simplified unfair dismissal process under the Small Business Fair Dismissal Code and is exempt from redundancy pay under the NES

Statutory bodies and regulators

FWO

Fair Work Ombudsman

Enforces the Fair Work Act, investigates complaints, provides compliance guidance, and takes legal action against non-compliant employers. Small businesses deal with the FWO far more often than with the Commission.

FWC

Fair Work Commission

Independent tribunal that makes and varies modern awards, approves enterprise agreements, and hears unfair dismissal and general protections claims. Runs the Annual Wage Review each year.

ATO

Australian Taxation Office

Administers PAYG income tax withholding, the Superannuation Guarantee (12% of ordinary time earnings), and the Payday Super transition from 1 July 2026.

SWA

Safe Work Australia

National policy body for work health and safety. Individual states and territories enforce WHS laws through their respective regulators (SafeWork NSW, WorkSafe Victoria, and so on).

OAIC

Office of the Australian Information Commissioner

Regulates the Privacy Act 1988 and the Australian Privacy Principles. Handles complaints about personal information handling, including employee data for businesses over the small-business threshold.

Statutory leave entitlements

Leave typeEntitlement
Annual leave4 weeks paid per year; 5 weeks for defined shift workers
Personal and carer's leave10 days paid per year for full-time staff, pro-rata for part-time
Parental leaveUp to 12 months unpaid, plus up to 26 weeks government Paid Parental Leave from July 2026
Long service leaveState-based, typically 6 to 13 weeks after 7 to 10 years of continuous service
Family and domestic violence leave10 days paid per year for all employees including casuals
Public holidaysPaid day off on gazetted public holidays unless reasonably required to work

Data protection

Privacy Act 1988 and Australian Privacy Principles

The Privacy Act and the 13 Australian Privacy Principles (APPs) govern personal information handling. Businesses with annual turnover above AUD 3 million are covered, and employee records still have a specific exemption under current law. Recent OAIC decisions have been narrowing that exemption's scope by applying a strict test that only actions with a direct connection to the employment relationship qualify. New Privacy Act amendments also require automated-decision-making to be disclosed in privacy policies from 10 December 2026, and a statutory tort for serious invasions of privacy now applies alongside the Act. Full reform of the employee-records exemption has been flagged but no draft bill has been released.

Free tool

Calculate Australia leave entitlements

Free Australia leave calculator pre-loaded with the National Employment Standards baseline. See annual leave, personal and carer's leave, parental leave, and family and domestic violence leave. Long service leave is state-based; see the notes in the results.

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Frequently asked questions about HR in Australia

What are the National Employment Standards (NES) in Australia?

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The NES are 11 minimum employment entitlements set out in the Fair Work Act 2009. They cover maximum weekly hours, flexible working requests, parental leave, annual leave, personal and carer's leave, community service leave, long service leave, public holidays, notice and redundancy, superannuation, and the Fair Work Information Statement. They cannot be reduced by contract, award, or agreement.

How does long service leave work in Australia?

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Long service leave is governed by state and territory legislation, not the Fair Work Act directly. Thresholds range from 7 years (Victoria and ACT) to 10 years (most other jurisdictions). Entitlement weeks range from about 6 weeks (ACT) to 13 weeks (South Australia and Northern Territory). The employee's state of employment determines the applicable regime.

What is the current Superannuation Guarantee rate?

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The Superannuation Guarantee rate is 12% of ordinary time earnings from 1 July 2025, the final step of a legislated ramp-up. From 1 July 2026, Payday Super requires super to be paid at the same time as wages, with funds reaching the employee's super account within seven business days.

Which modern award covers my employees?

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There are 121 modern awards of general application. Most are industry-based (for example, the Hospitality Industry General Award or the Clerks Private Sector Award); some are occupational. The Fair Work Ombudsman's pay and conditions tool will identify the relevant award and classification level once you enter the industry and role duties.

What data protection laws apply to HR data in Australia?

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The Privacy Act 1988 and the 13 Australian Privacy Principles apply to most businesses with annual turnover above AUD 3 million. Employee records still have an exemption, but the OAIC has been narrowing how far it reaches through recent decisions, and a statutory tort for serious invasions of privacy now applies alongside the Act. From 10 December 2026, privacy policies must also disclose automated decision-making. Building good practices now (controlled access, audit logs, retention limits) is sensible regardless of where the exemption lands.

How long must I keep employee records in Australia?

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The Fair Work Regulations 2009 require employers to keep specified employee records for seven years. That covers pay, hours, leave, superannuation contributions, termination details, and more. The ATO has its own retention expectations on payroll records.

Does Cedrios support Australia-specific payroll?

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Cedrios currently supports Australian leave tracking, contracts, documents, and people records. Integrated PAYG and Superannuation Guarantee payroll, including Payday Super readiness, is on the roadmap. Our free tools handle the standalone calculations in the meantime.

Ready to modernize your Australian HR?

Start with the free tier for up to 10 people. Cedrios covers the NES entitlements and state-specific long service leave out of the box, with room to scale as your team grows.

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