Hiring Employees in Australia: Complete Compliance Checklist 2026
Everything Australian employers need to do when hiring a new employee in 2026. Covers TFN declarations, super choice forms, Fair Work Information Statement, award classification, pay rates and loading, record keeping obligations, and probation periods — with links to official forms and free calculators.
TFN declaration: collect within 28 days
Every new employee must complete a Tax File Number (TFN) declaration form and return it to you within 28 days of starting work. You must then submit this to the ATO within 14 days of receiving it — most payroll software handles this automatically via Single Touch Payroll (STP). If an employee does not provide their TFN within 28 days, you are required to withhold tax at the top marginal rate (currently 45% plus Medicare levy) until a valid TFN is supplied. The form also captures the employee's tax-free threshold claim, HELP/HECS debt status, and residency status. Do not keep copies of the TFN declaration longer than necessary — store the TFN securely and destroy the paper form once processed. The ATO provides the form as a free download (NAT 3092), and it can be completed online via myGov. Getting this right on day one saves payroll headaches and ensures your employee is taxed correctly from the first pay run.
Super choice form: offer within 28 days
Under the Superannuation Guarantee (Administration) Act, you must offer a new employee the choice of super fund within 28 days of their start date. Provide them with a Standard Choice Form (NAT 13080) or an equivalent form generated by your payroll system. The employee nominates their preferred fund; if they do not choose one, you must pay into your organisation's default fund — which must be a MySuper-authorised product. From 1 November 2021, the 'stapled super fund' rules apply: if the employee does not nominate a fund and you don't have a default, you must contact the ATO to request the employee's existing stapled fund details before creating a new account. This prevents employees accumulating multiple super accounts. The SG rate for 2025-26 is 12%, and from 1 July 2026, payday super will require contributions with every pay cycle. Use our Cost of Employment Calculator to model the true cost of a new hire including super obligations.
Fair Work Information Statement: mandatory handout
Before or as soon as possible after a new employee starts, you must give them the Fair Work Information Statement (FWIS). This is a legal requirement under section 125 of the Fair Work Act 2009, and failure to provide it can be raised in any future Fair Work Commission proceeding as evidence of non-compliance. The FWIS covers the National Employment Standards (NES), modern awards, agreement-making, individual flexibility arrangements, termination of employment, right of entry, and the role of the Fair Work Commission and Fair Work Ombudsman. You can download the current version from fairwork.gov.au — it is updated periodically, so always provide the most recent version. For casual employees, you must also provide the Casual Employment Information Statement (CEIS), which explains casual conversion rights. Simply printing and handing these documents to the employee on day one, or emailing them with a read receipt, satisfies the obligation. Keep a record that you provided it.
Award classification: get it right from day one
One of the most critical — and most commonly botched — parts of hiring is correctly classifying the employee under the applicable modern award. Australia has 121 modern awards covering most industries and occupations. To determine the correct award, identify the industry your business operates in, then match the employee's role to a classification level within that award. Each classification level has a minimum pay rate, and getting this wrong (even innocently) constitutes underpayment. Common mistakes include applying the wrong award entirely (e.g., using the Retail Award for a hospitality worker), or classifying an experienced employee at a junior level to save costs. The Fair Work Ombudsman's Pay and Conditions Tool (PACT) helps identify the correct award for a given role. If your employee is award-free (typically senior managers earning above the high-income threshold of $175,000), document this clearly in their employment contract. When in doubt, seek advice before locking in a classification — reclassification back-pay claims are among the most common Fair Work disputes.
Pay rates, loadings, and allowances
Once you have identified the correct award and classification level, set up payroll with the correct base rate, casual loading (if applicable), penalty rates, overtime rates, and any allowances the employee is entitled to. For 2025-26, the national minimum wage is $24.10 per hour ($915.90 per 38-hour week), but most award rates are higher than the minimum. Casual employees must receive a 25% casual loading on top of the applicable minimum hourly rate. Penalty rates apply for evening work, weekend work, and public holidays — and these vary by award. Some awards also mandate allowances for travel, uniforms, tools, or meal breaks. Set up your payroll system to apply these rates automatically based on the employee's roster and work patterns. Use our Leave Calculator to understand leave accrual from the start date, and our Cost of Employment Calculator to see the full loaded cost including super, workers compensation insurance, and payroll tax (if applicable).
Record keeping obligations from day one
From the moment you hire an employee, you must begin keeping detailed employment records — and retain them for 7 years. Required records include the employee's full name, date of birth, start date, employment status (full-time, part-time, or casual), hours worked each day, gross and net pay for each pay period, leave balances and leave taken, superannuation contributions, and any agreements or variations to the award. Records must be in English, legible, and readily accessible. The Fair Work Act imposes penalties of up to $16,500 per contravention for individuals and $82,500 for companies for failing to keep proper records. Since 1 January 2022, the burden of proof in underpayment disputes has been reversed for employers who fail to keep adequate records — meaning if you cannot produce records, the employee's claim is presumed correct. Modern payroll software (Xero, MYOB, QuickBooks) automates most record keeping, but you must ensure the data is accurate and backed up.
Probation periods: what employers can and cannot do
Many employment contracts include a probation period, typically 3 to 6 months. However, probation periods in Australia do not give employers a free pass to dismiss without consequence. During probation, the employee still has all NES entitlements — leave accrual, notice periods, and protection from unlawful termination (discrimination, temporary absence, etc.). What probation does affect is unfair dismissal protection: employees of non-small businesses (15 or more staff) cannot bring an unfair dismissal claim until they have completed 6 months of continuous service. For small businesses (under 15 employees), this qualifying period is 12 months. This means during the minimum employment period, you can terminate more easily — but you must still have a valid reason, give appropriate notice (or pay in lieu), and not terminate for a prohibited reason. Set clear expectations and conduct regular check-ins during probation. Document performance concerns as they arise rather than waiting until the end. A well-managed probation period protects both parties and reduces the risk of future disputes.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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