Australia: Operating a Business

Enterprises Federation

State Department for Regional Development of Small Enterprises
Small Enterprise Association
The Council of Small Business of Australia Ltd

Search a Company or a Financial Report

ASIC, Australian Securities and Investments Commission

Business Setup Procedures

For Further Information

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

The Competent Organization

Australian Security and Investment Commission (ASIC)

Recovery Procedures

Principle

Via Debt collectors who are paid on commission, then through the legal framework and the appeal system. Up to 40 000 AUD: recoverable by a local court. Up to 750 000 AUD, by a District Court, and above this by the High Court.
For further information, consult FINDLAW AUSTRALIA.

Minimum Debt-to-Capital Ratio Triggering Liquidation

According to Australian legislation, a company starts being in a bankruptcy situation either when a creditor files a claim with the Insolvency and Trustee Service of Australia which sends a bankruptcy notice, or when there is a creditor petition. The Federal Court determines whether the company has committed an act of bankruptcy.

Bankruptcy Laws

Bankruptcy Act 1966
Amendment Act 2007

Reorganization and Rehabilitation Laws

Bankruptcy Act 1966
Amendment Act 2007

Source: Australian Bureau of Statistics

Opening Hours

 

• Legal Weekly Duration

38 hours

• Maximum Duration

Maximum duration: 10 hours a day and 48 hours a week.

• Night Hours

Between 9pm and 6am.

Working Rest Day

2 days a week, generally Saturday and Sunday.

Paid Annual Vacation

4 weeks' vacation.

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

Child Labor and Minimum Age For Employment

In New South Wales, Northern Territory, South Australia and in Tasmania the minimum age is 14 years  for casual and part time employees.

In Victoria the minimum age is 15 years.

In Queensland the Child Employment Act requires employees who have not yet finished year 10, to provide parental consent to commence work. Employees under 16 may only work 12 hours during a school week (38 hours a week during school holidays), with each shift being a maximum of 4 hours Monday to Friday and 8 hours Saturday and Sunday.

In Western Australia the employees under 15 years of age need to provide parental consent to commence work. For legislative reasons employees under 16 year of age may not work during school hours and those under 15 years of age may only work between the hours of 6am to 10pm.

In Australian Capital Territory the recommended minimum age for full time employment is school leaving age (i.e 15 years of age). It is possible to be employed below this age for a maximum of 10 hours per week. However if you wish to be employed for more than 10 hours per week, prior approval must be obtained from the Chief Executive of the Department of Housing, Disability and Community Services.

 

Informal Labor Market

Undeclared work is made up especially of working hours only partially declared and undeclared overtime. Moonlighting is a reality in Australia.

Pay

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.

Other Forms of Pay

• Pay For Overtime

Saturday work is 1.5 times the basic hourly rate and Sunday work twice the basic hourly rate.

• Pay For Rest Days Worked

Leave loading exists in Australia: +17.5% of the hourly rate for vacation days.

• Pay For Night Hours

+ 30% of the rate on a full-time basis.

• Pay For Overtime at Night

Double the hourly rate.

Social Security Costs

The Areas Covered

MEDICARE social security covers an essential part of health expenses.

Contributions

Contributions Paid By the Employer: 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).
Contributions Paid By the Employee: 0%

Competent Organization

Australian Fair Pay Commission

Recruitment

Method of Recruitment

More and more applications are made by Internet. The classic method of preliminary interviews with agencies then recruitment by face to face interview is practised in Australia.

Recruitment Agencies

Michael Page, AC People and Polyglot (specialized in European profiles).

Recruitment Websites

CareerOne
My Career
SEEK
Government agency

The Contract

Dispute Settlement

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).

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.

Unions

Australian Council of Trade Unions (ACTU)

Regulation Bodies

Department of Employment