Employer of Record in Australia

How hiring through an employer of record works in Australia

Australian employees in the national system are protected by the National Employment Standards and, depending on the role, an award or enterprise agreement; no contract can undercut them. So the first step is pinning down the employment type, the classification and the person's right to work, then recording pay and hours in writing.

A local employer holds the Australian contract, and coverage is checked for the state and the assignment. Sponsorship is outside the documented offering, and fixed-term contracts are generally capped at two years with one renewal.

Employer costs beyond salary in Australia

Expect to budget gross pay, superannuation, state payroll tax, workers' compensation cover and the service fee. Award penalties, overtime and allowances can lift the wage bill, so any employer-cost percentage needs to be calculated for the real arrangement rather than quoted as a flat rate.

Payday Super changes the timing from July 1, 2026: super is calculated at 12% of qualifying earnings and now travels with pay, reaching the fund within seven business days in most cases. Payroll tax is assessed on group wages against the state threshold, workers' compensation premiums track location, industry and claims history, and PAYG withholding is an employee deduction rather than an employer cost.

There is no statutory 13th month and no private health insurance duty. Toku's optional health provider is GU Health, which took over from Bupa in July 2026.

Working time and leave in Australia

• Hours: full-time work is capped at 38 a week plus reasonable extra hours, with awards and agreements able to regulate overtime and rosters.
• Paid leave: four weeks of annual leave (a fifth for some shiftworkers) and ten days of personal and carer's leave for full-time staff, pro-rated for part-timers.
• Specialist leave: compassionate leave, family and domestic violence leave and long service leave all exist, with long service leave set by state or territory law.
• Parental leave: up to 12 months unpaid, with a request to extend to 24. Government Parental Leave Pay is separate and shared by the family; it is not an employer-funded entitlement for each parent.
• Casuals: their package differs from permanent staff, so decide the employment type first.

Termination, notice and probation in Australia

Employer notice scales with service, from one to four weeks, and gains a week for staff over 45 with at least two years. Some casual work and serious misconduct fall outside it, and an award or contract can demand more. Redundancy pay, where it applies, climbs from four weeks to sixteen and settles at twelve after ten years.

Toku's six-month contractual probation is a different thing from the minimum employment period for an unfair dismissal claim, which is generally six months, or twelve for small employers. General protections apply from day one regardless.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in Australia

Short answer: Not settled. Section 323 of the Fair Work Act requires pay in money, and section 324 lets an employee authorise in writing a deduction principally for their own benefit, including a salary sacrifice, but no official source says that allows salary to be paid in USDC. PAYG and super still run on the dollar amount.

What the law says about the form of pay

Section 323 of the Fair Work Act requires pay for work to be made in money, by cash, cheque, electronic funds transfer or a method an award or agreement authorizes. Section 324 lets an employee authorise in writing a deduction principally for the employee's benefit, and its note says a salary sacrifice or other arrangement under which an employee forgoes an amount payable in return for another benefit is permitted.

What it means for employee salary

Australian pay is calculated and reported in Australian dollars: PAYG withholding, superannuation and state payroll tax all start from the dollar amount, and pay, tax withheld and super are reported to the ATO through Single Touch Payroll. A USDC payout of that salary does not fit the ways of paying listed in section 323. The written-authorisation deduction in section 324, including a salary sacrifice, is a separate rule limited to deductions principally for the employee's benefit, and it does not say salary can be paid in USDC. Toku's Australia guide says stablecoin availability should not be assumed, so Toku confirms what is possible for your hire before an offer.

Contractors

The wage rule covers employees. For a contractor or business, the ATO treats the money value of crypto received for services as ordinary income when it is derived.

Tax on crypto and tokens

The ATO treats crypto paid by an employer as assessable income at its Australian dollar market value when received, and the employer must still meet PAYG withholding and superannuation. A later sale is a capital gains tax event, the 12-month discount can apply to holdings over a year, and records are kept for five years.

How Toku handles it

Separately from what the law in Australia allows, Toku offers stablecoin payroll, including USDC, in supported arrangements and pays contractors in USDC or USDT through contractor management. Token grants are a separate arrangement from salary, administered through token grant administration. This page does not say any of these is available for a hire in Australia: that is confirmed before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in Australia

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

For Australia Toku documents a standard lead time of 3 to 5 business days once a case is complete and the person can work there, and recommends starting two weeks early. You will need a TFN declaration, superannuation choice details, bank details, proof of work rights and signed terms. A slow award review, visa conditions or a missed payroll cutoff can lengthen it.

What an employer of record costs in Australia

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in Australia is confirmed before an offer. See the published pricing.

More on hiring in Australia

• Payroll and hiring in Australia
• Employer of Record Australia: hiring and payroll guide
• Employer of record coverage in 100+ countries