Australia is a developed high-income country with the world’s 14th-largest economy. The Australian economy is dominated by the services sector, which accounts for the largest portion of GDP, followed by mining (12.2%), health and education (13.4%), finance (7.5%), construction (7.5%), and manufacturing (5.9%). Australia’s GDP reached $1.75 trillion USD in 2024, representing 1.65% of the world economy. The country experienced modest growth of 0.2% in Q1 2025, with steady economic performance supported by strong natural resource exports and a robust domestic market.
Unlock growth opportunities in Australia with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Australia’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Australia, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Australia’s employment and tax laws, helping you scale confidently and compliantly.
The most common form of business entity for foreign investment in Australia. A Pty Ltd company offers limited liability protection and operational flexibility. It can be established by one or more shareholders (maximum 50 non-employee shareholders) with no minimum share capital requirement. The liability of shareholders is limited to their shareholding and any unpaid amounts on their shares.
A corporate entity suitable for larger operations that may seek public investment. Public companies can have unlimited shareholders and may list on the Australian Securities Exchange (ASX). Requires compliance with the Corporations Act 2001 and additional regulatory requirements including continuous disclosure obligations.
Allows foreign companies to conduct business activities in Australia under the parent company’s name. The branch office is not a separate legal entity but an extension of the foreign parent company. Must be registered with the Australian Securities and Investments Commission (ASIC).
A limited presence allowing foreign companies to conduct market research, liaison activities, and represent the parent company’s interests. Cannot engage in commercial activities or generate revenue in Australia. Must register with ASIC if conducting certain activities.
Must have at least one director who is ordinarily resident in Australia. This can be an Australian citizen, permanent resident, or someone who ordinarily resides in Australia. Public companies require at least three directors, with at least two ordinarily resident in Australia.
Must have at least three directors, with at least two directors ordinarily resident in Australia. The company must also have a company secretary, who may also be a director.
Must appoint an agent who is ordinarily resident in Australia to act on behalf of the foreign company.
Must appoint a local agent or representative who is ordinarily resident in Australia.
Australian bank account setup requires specific documentation and follows strict regulatory compliance procedures:
Bank Account Setup in Australia: What’s Possible and When
Before Incorporation:
After Incorporation:
Note:
All banking activities must comply with Australian banking regulations and anti-money laundering requirements.
Required documents include the ASIC company registration certificate, constitution or replaceable rules, directors’ identification and verification documents, proof of registered office address, and tax file number (TFN) or Australian Business Number (ABN).
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
Employment in Australia is primarily governed by the following laws:
Employment contracts should be in written form, though verbal contracts are legally valid for certain circumstances.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Permanent Employment
Full-time or part-time employment with ongoing employment security. Permanent employees are entitled to all leave benefits, notice periods, and redundancy pay where applicable.
Casual Employment
Employment without ongoing commitment to continuing work. Casual employees receive a casual loading (typically 25%) in lieu of leave entitlements and receive higher hourly rates to compensate for the lack of job security.
Fixed-Term Employment
Employment for a specific period or until completion of a specific task. Maximum term restrictions may apply under certain awards and agreements.
In Australia, a probationary period typically ranges from three to six months, with a maximum of 12 months for some specialized roles.
The regular working hours in Australia are 38 hours a week, though this may vary by industry award. Part-time employees work fewer than 38 hours per week with pro-rata entitlements.
Overtime
Any hours beyond the standard working hours are considered overtime.
Notice periods vary based on length of service and employment type:
Redundancy pay applies for permanent employees with at least 12 months of service, ranging from 4-16 weeks based on years of service.
Foreign nationals require appropriate work authorization to work in Australia. Australian citizens and permanent residents can work freely without restrictions.
Work Visa & Permit Options in Australia
1. Temporary Skill Shortage (TSS) Visa (Subclass 482)
For skilled workers sponsored by approved Australian employers.
2. Skilled Independent Visa (Subclass 189)
For skilled workers without employer sponsorship.
3. Employer Nomination Scheme (ENS) Visa (Subclass 186)
For skilled workers nominated by Australian employers for permanent residency.
4. Global Talent Visa (Subclass 858)
For exceptional talent in priority sectors.
Key Notes:
Visa options and eligibility criteria are regularly updated by the Department of Home Affairs; ensure you consult the latest requirements before proceeding.
Permanent employees are entitled to 4 weeks (20 working days) of paid annual leave per year. Some shift workers may be entitled to 5 weeks. Annual leave accrues progressively during the year of service.
Unpaid parental leave applies to employees who have the responsibility for the care of a child, and it also includes employees who will have the responsibility of a child.
For female employees, leaves can start up to 6 weeks before the expected date of birth (or earlier if agreed), which can be extended to 24 months by agreement.
For fathers or employees who are not pregnant can take parental leave at any time within 24 months of the birth, but the leave must end within 24 months of the birth or placement of the child.
Each parent can take up to 12 months unpaid parental leave, or up to 24 months according to their agreements. An employee’s entitlement to unpaid parental leave is not affected by how much leave their partner takes.
Also known as personal or carer’s leave and is typically accrued at a rate of 10 days per year for full-time employees, and pro-rata for part-time employees.
The following statutory national holidays are observed in Australia:
Additional state and territory public holidays may apply.
Payroll frequency in Australia varies but is typically weekly, fortnightly, or monthly depending on the award, agreement, or employment contract. Most employees are paid fortnightly.
There is no legal requirement for a 13th month salary or mandatory bonus, though some awards and agreements may include annual leave loading (typically 17.5% above normal wages when taking annual leave).
The Australian employment system includes mandatory superannuation (pension) contributions and access to various government benefits.
The mandatory benefits in Australia include:
Australian accounting follows Australian Accounting Standards (AAS) based on International Financial Reporting Standards (IFRS), administered by the Australian Accounting Standards Board (AASB).
All Australian companies must lodge annual returns and financial statements with ASIC.
Audit requirements depend on company size and type:
Audits must be performed by registered company auditors and lodged with ASIC.
The standard corporate tax rates are:
The GST rate in Australia is 10% on most goods and services.
Businesses with annual turnover of AUD $75,000 or more must register for GST. Some items are GST-free or input-taxed.
Corporate tax returns are due by October 31 following the end of the financial year (June 30) for self-lodging companies, or by May 15 of the following year if lodged by a registered tax agent.
Penalties include a monetary fine of AUD $1,050 for individuals and AUD $5,250 for companies, and other penalties may be administered.
Australia has comprehensive transfer pricing rules aligned with OECD guidelines:
Australia implements CbC reporting requirements:
Transfer pricing documentation is required for Australian entities that are part of multinational groups above certain thresholds.
Master File
Local File
Deadline: Documentation must be prepared by the due date for lodging the income tax return and provided to the ATO within 30 days of request.
Australia’s privacy framework is governed by the Privacy Act 1988, which includes the Australian Privacy Principles (APPs).
Australia’s AML framework is governed by the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), administered by AUSTRAC.
Obligated entities: Banks, credit unions, money transfer services, casinos, bullion dealers, and other designated services.
Key requirements:
Penalties: Civil penalties up to AUD $22.2 million for corporations; criminal penalties including imprisonment for serious offenses.
Reasons you should setup legal entity in Australia:
Cerity Global ensures your business expansion in Australia is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Australia business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Australia.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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