What is the true cost of an employee in Australia?

The true cost of an employee is typically 30-50% more than their base salary. On top of the salary, employers pay 12% superannuation, workers compensation insurance (1-5%), payroll tax (varies by state, threshold ~$1M), leave loading (17.5%), and costs for annual leave, personal leave, long service leave, and training.

How much super do I pay on top of salary?

As of 1 July 2025, the Superannuation Guarantee rate is 12% of an employee's Ordinary Time Earnings (OTE). This is paid on top of the base salary for most employees, unless their contract specifies a 'super inclusive' salary.

Do small businesses have to pay payroll tax?

Payroll tax only applies when your total Australian wages exceed the threshold for your state. Thresholds range from ~$700,000 (ACT) to ~$1,000,000 (QLD, VIC). Most small businesses with a total wage bill under the threshold are exempt.

Cost of Employment Calculator

Enter a base salary to calculate the true total cost of employment including superannuation, workers comp, payroll tax, leave loading, and training.

Last verified: 1 July 2025

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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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