Payroll & Staff Cost calculator
Employee Cost Calculator Australia
Estimate the full annual cost of employing someone in Australia, including super, payroll tax, workers compensation, and other annual employment costs.
Why use it
- Useful when you want to compare the advertised salary with the real annual employer cost.
- The result is an estimate only. It is not legal, payroll, tax, or HR advice.
- Different states, awards, industries, and role setups can change the actual cost materially.
Calculator tool
Use the employee cost calculator australia
Estimate the full annual cost of employing someone in Australia, including super, payroll tax, workers compensation, and other annual employment costs.
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Email it to yourself, send it to a customer, or copy the figures into a quote — all without an account.
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Important note
BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.
- Calculator results are general estimates only and depend on the figures entered.
- Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
- Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.
How it works
Understand the formula before you use the result
The calculator uses a simple working formula so you can sense-check the result quickly and explain it clearly inside your business.
Employee cost estimate formula
Super = salary × super rate
Payroll tax = salary × payroll tax rate
Workers compensation = salary × workers compensation rate
Total employment cost = salary + super + payroll tax + workers compensation + other annual costs
Rates are applied as percentages of base salary, then combined with any additional annual employment costs you enter.
Worked example
See the numbers in a realistic scenario
Use the example below as a sense check when you compare the calculator result to a real quote, sale, or pricing decision.
Worked example
Worked example: estimating a full-time role
An employer is budgeting for a role with an $80,000 salary, 12% super, 4.85% payroll tax, 1.5% workers compensation, and $2,000 of other annual employment costs.
- Base annual salary: $80,000
- Superannuation rate: 12%
- Payroll tax rate: 4.85%
- Workers compensation rate: 1.5%
- Other annual employment costs: $2,000
Calculation steps
- Super = $80,000 × 12% = $9,600
- Payroll tax = $80,000 × 4.85% = $3,880
- Workers compensation = $80,000 × 1.5% = $1,200
- Total employment cost = $80,000 + $9,600 + $3,880 + $1,200 + $2,000 = $96,680
The role may cost about $96,680 per year before any further award, leave, or business-specific costs are added.
Recommended tools
Once you have employees, payroll software pays for itself
The real cost of an employee is only manageable if you have Single Touch Payroll, super, and BAS handled automatically. These two Australian platforms own that space.
Xero
Accounting software for growing businesses
The most widely used cloud accounting platform in Australia — invoicing, GST, payroll, BAS, and integrations with most banks and POS systems.
MYOB
Accounting + payroll for Australian SMBs
Long-running Australian accounting platform with strong payroll, single-touch payroll lodgement, BAS, and inventory features for established small businesses.
See our accounting platform comparison: Xero vs MYOB vs Hnry vs Rounded →
BizTools.au may earn a small commission if you start a paid plan after clicking an affiliate link. The commission does not change the price you pay and does not influence which tools we recommend — see our disclaimer for the full version.
FAQ
Common questions about the employee cost calculator australia
These are the practical questions operators usually run into when they apply the result to a real business decision.
Is this calculator an exact payroll answer?
No. It is a planning estimate only. Actual employer cost can vary based on state rules, awards, classifications, leave, thresholds, and payroll setup.
What should I include in other annual employment costs?
Typical examples include training, equipment, software licences, uniforms, recruitment, onboarding, and any business-specific costs tied to the role.
Can payroll tax or workers compensation be zero?
Yes. Some businesses may sit below thresholds or prefer to model a simple estimate first. If the cost does not apply to your scenario, leave it at 0.
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