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Free tools › Employer on-costs by country

Employer on-costs: Australia vs New Zealand

Statutory employer on-costs in Australia and New Zealand, side by side, with the primary source for every figure.

How do statutory employer costs compare between Australia and New Zealand?

Australia: 12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top. New Zealand: 3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax. On a local salary of 100,000 that is A$12,000 (12.0%) in Australia versus NZ$3,500 (3.5%) in New Zealand in fixed statutory costs.

Australia vs New Zealand, side by side

AustraliaNew Zealand
The rule12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top.3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax.
On 60,000 (local)A$7,200 (12.0%)NZ$2,100 (3.5%)
On 100,000 (local)A$12,000 (12.0%)NZ$3,500 (3.5%)
On 150,000 (local)A$18,000 (12.0%)NZ$5,250 (3.5%)
Key numbersSuperannuation guarantee: 12% (max contribution base A$270,830 a year); Payroll tax: 4.75% to 6.85% by state, above thresholds; Workers compensation: Compulsory, industry-rated (state averages ~1.3-1.8%)KiwiSaver employer minimum: 3.5% (4% from 1 Apr 2028); ACC work levy: Industry-rated, average NZ$0.69 per NZ$100 (excl GST); Payroll tax: None

Australia

The universal fixed cost is the 12% superannuation guarantee, now paid every payday under Payday Super. Payroll tax only starts above state thresholds (NSW $1.2M of annual wages, for example), so small employers often pay none. Workers compensation is compulsory everywhere but industry-rated, averaging roughly 1.3% to 1.8% of wages.

  • Superannuation guarantee12% (max contribution base A$270,830 a year)
  • Payroll tax4.75% to 6.85% by state, above thresholds
  • Workers compensationCompulsory, industry-rated (state averages ~1.3-1.8%)
  • The super rate has stopped climbing; 12% is the legislated end state.
  • From 1 July 2026 contributions must reach the fund within 7 business days of payday.

Source: Australian Taxation Office (12% since 1 Jul 2025; Payday Super from 1 Jul 2026). Checked July 2026.

New Zealand

New Zealand is the lightest of the six on fixed employer costs: 3.5% KiwiSaver (rising to 4% in April 2028) and an industry-rated ACC work levy averaging 0.69%. ESCT is deducted from the employer contribution rather than added on top, a detail that trips up cost models. There is no payroll tax and no separate social security charge.

  • KiwiSaver employer minimum3.5% (4% from 1 Apr 2028)
  • ACC work levyIndustry-rated, average NZ$0.69 per NZ$100 (excl GST)
  • Payroll taxNone
  • ESCTDeducted from the contribution, not added to it
  • Employees can temporarily drop to 3%, which drops the employer minimum with them.

Source: Inland Revenue (3.5% from 1 Apr 2026). Checked July 2026.

The maths: Australia

Salary (local)ComponentsTotal
60,000Superannuation guarantee A$7,200A$7,200 (12.0%)
100,000Superannuation guarantee A$12,000A$12,000 (12.0%)
150,000Superannuation guarantee A$18,000A$18,000 (12.0%)

Plus state payroll tax above thresholds (4.75% to 6.85%) and industry-rated workers compensation.

The maths: New Zealand

Salary (local)ComponentsTotal
60,000KiwiSaver employer contribution NZ$2,100NZ$2,100 (3.5%)
100,000KiwiSaver employer contribution NZ$3,500NZ$3,500 (3.5%)
150,000KiwiSaver employer contribution NZ$5,250NZ$5,250 (3.5%)

Plus the industry-rated ACC work levy (2026/27 average NZ$0.69 per NZ$100).

Hiring in both markets?

Put a full number on each side with the true-cost calculators: True cost of an employee (Australia) and True cost of an employee (New Zealand). The complete six-market picture is on the Employer on-costs by country page.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
AustraliaAustralian Taxation Office12% since 1 Jul 2025; Payday Super from 1 Jul 2026Checked July 2026
New ZealandInland Revenue3.5% from 1 Apr 2026Checked July 2026
Where Compono fits

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work, not just what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works

Common questions

What is the rule on employer on-costs in Australia?

12% superannuation on top of salary, with state payroll tax (4.75% to 6.85%) above thresholds and industry-rated workers compensation on top. The universal fixed cost is the 12% superannuation guarantee, now paid every payday under Payday Super.

What is the rule on employer on-costs in New Zealand?

3.5% compulsory KiwiSaver plus the ACC work levy (averaging $0.69 per $100 of wages). No payroll tax, no social security tax. New Zealand is the lightest of the six on fixed employer costs: 3.5% KiwiSaver (rising to 4% in April 2028) and an industry-rated ACC work levy averaging 0.69%.

Where can I check the source figures?

The sources section below links the Australia and New Zealand government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the Fair Work Ombudsman, Employment New Zealand or your own adviser. Last reviewed July 2026.