Australia: Operating a Business

Setting Up a Company

Business Setup Procedures

Consult Doing Business Website, to know about procedures to start a Business in Australia.
Australia Business Register

Working Conditions

Legal Weekly Duration

38 hours

Retirement Age

There is no legal retirement age. Retirement is negotiated with the employer.
However, employees are authorized to request a pension as follows:
- Men: from 65
- Women: between 60 and 65 according to date of birth

Working Contracts

There are two main types of work contract:
- the most widespread is the Ongoing contract or permanent contract. It is an individual contract.
- the Fixed Term Employment contract of a similar type but fixed-term.

Note also the collective agreements (certified/Enterprise Agreements) a result of negotiations between employers and employee unions, and the Australian Workplace Agreements (AWA), the fruit of individual negotiations between employer and employees; these will be terminated by the new Labor government (no more AWAs since 28 March 2008).

Cost of Labor

Minimum Wage

The legal minimum wage or Federal Minimum Wage (FMV) is 13.74 AUD per hour.

Average Wage

The annual average full-time wage (not including overtime): AUD 61,038 for men and AUD 51,054 for women.

Social contributions

Social Security Contributions Paid By Employers: The State deducts Payroll Tax, which varies between 3.65% and 6.85% of the company's global payroll (although small companies are generally exempted according to the State/Territory of Australia).
Social Security Contributions Paid By Employees: 0%

Social Partners

Social Dialogue and Involvement of Social Partners

There are about 132 unions in Australia organized by trade association.
Because of the increase in the proportion of the workforce which is not unionized, the credibility of the unions has diminished over the last few years, but powerful relations continue to exist between unions and the Labor Party.
Legal provisions govern work contracts. They were reformed and then enforced from 27 March 2006. However, the new Labor government in power since December 2007 wants to query this legislation.
The new system provides a unique ensemble of simple rules which can be applied nationally. The Workplace Relations Act which includes the new rules of WorkChoices is available for downloading.
The first role of the Office of the Employment Advocate (OEA) is to supervise the enforcement of agreements in the work context. The OEA also provides:
- advice and information for employers and employees who wish to draw up a contract together
- assistance for employers and employees to understand the Australian Fair Pay and Conditions Standard
- it verifies the legitimacy of agreements between employers and employees before they come into force
- it explains the content of agreements to people with specific needs (for example: young people, people from a non-English speaking background).

Unions

Australian Council of Trade Unions (ACTU)

Unionization Rate

In Australia it is not compulsory to join a union. Unions are represented by the Australian Council of Trade Unions (ACTU); these represent more than 2 million Australian workers, i.e. 22% of the active population.

Labor Regulation Bodies

Department of Employment

Any Comments About This Content? Report It to Us.