In today’s digital-first world, businesses across industries are racing to hire skilled software developers to build innovative products, optimize internal systems, and drive customer engagement. Australia, with its well-established tech ecosystem and a deep pool of engineering talent, has become a prime destination for companies looking to expand their development capabilities.

However, hiring software developers in Australia without setting up a legal entity can be complex. From tax regulations to employment laws, navigating the process without local knowledge can expose your business to unnecessary risk. The good news? You don’t need to go it alone. With the help of an Employer of Record (EOR), foreign companies can hire remote employees in Australia legally and efficiently—without opening a branch office or subsidiary.

This guide outlines how to tap into Australia’s software talent using global employment solutions, international payroll services, and Professional Employer Organization (PEO) models.

Why Australia for Software Development Talent?

Australia is home to world-class universities, a vibrant startup scene, and a growing number of tech hubs in cities like Sydney, Melbourne, and Brisbane. The country consistently ranks high for innovation, digital infrastructure, and workforce education. These factors make it an attractive market for recruiting highly qualified software developers skilled in:

• Web and mobile development (JavaScript, React, Angular, Flutter)
  
• Backend systems (Python, Java, Node.js)
  
• Cloud computing (AWS, Azure, GCP)
  
• DevOps and CI/CD pipelines
  
• Data engineering and AI development
  

Foreign companies looking to hire remote employees can benefit from both full-time professionals and freelancers, many of whom are already experienced in collaborating with international teams.

Challenges of Hiring in Australia Without a Local Entity

While the talent pool is impressive, directly hiring employees in Australia without a local business registration creates several challenges:

1. Legal Restrictions

Australian labor laws require employers to comply with national employment standards, superannuation contributions, tax withholding, and workplace protections. Without a registered business entity, you legally cannot hire local employees directly.

2. Payroll and Tax Compliance

Managing payroll in Australia means registering with the Australian Tax Office (ATO), deducting PAYG (Pay As You Go) income tax, making superannuation contributions, and providing annual payment summaries.

Without access to international payroll services, managing these obligations remotely can be risky and error-prone.

3. Onboarding and Benefits

Australian employees expect structured onboarding, fair pay, and access to health and retirement benefits. Failing to deliver a compliant and competitive package can make it difficult to attract top talent.

The Easiest Solution: Use an Employer of Record (EOR)

An Employer of Record serves as the legal employer for your Australian hires while you manage the daily work relationship. With an EOR company, you can:

• Hire software developers in as little as 1–2 weeks
  
• Avoid registering a legal entity in Australia
  
• Ensure compliance with local tax and labor laws
  
• Offer benefits packages that meet market expectations
  
• Simplify onboarding, payroll, and termination processes
  

The EOR assumes all employment-related risk and responsibility, making it a smart option for businesses looking to scale quickly and compliantly.

How EOR Helps You Hire Software Developers Remotely

Here’s a step-by-step overview of how the Employer of Record model works when hiring in Australia:

Step 1: Choose the Right EOR Partner

Start by selecting one of the top EOR providers that understands the Australian tech labor market and offers full support for international payroll services, benefits administration, and local compliance.

Step 2: Identify Talent

With the EOR’s help, you can recruit, screen, and select candidates from Australia’s thriving tech ecosystem. You may source candidates through job boards, recruitment firms, or the EOR’s local talent pool.

Step 3: Employment Contract and Onboarding

The EOR company drafts a locally compliant employment agreement, manages tax and legal registration, and helps onboard your new software developer with a proper welcome package, workplace policies, and system access.

Step 4: Ongoing Payroll and Benefits Management

Using payroll outsourcing or international payroll services, the EOR processes monthly salaries, deducts the appropriate taxes, and pays statutory contributions such as superannuation. They also manage sick leave, paid vacation, and health insurance if applicable.

Salary Expectations for Software Developers in Australia

To remain competitive, foreign employers should be aware of average compensation rates:

• Junior Software Developers: AUD $60,000–$80,000 annually
  
• Mid-Level Developers: AUD $90,000–$120,000
  
• Senior Developers or Tech Leads: AUD $130,000–$160,000+
  

Many Australian software developers also expect:

• Flexible working hours or hybrid/remote options
  
• Paid annual leave (20 days standard)
  
• Sick leave (10 days per year)
  
• Superannuation contributions (11% as of 2025)
  
• Career development or training budgets
  

An EOR company will ensure that your job offers remain both compliant and appealing.

Comparing EOR to Professional Employer Organization (PEO) Models

Some businesses confuse PEO and EOR, but their use cases are different:

• A Professional Employer Organization (PEO) enters a co-employment relationship, typically for companies that already have a local entity in the country.
  
• An EOR becomes the sole legal employer—perfect for companies that hire remote employees in a country where they have no local business presence.
  

For hiring in Australia without incorporation, the EOR model is more efficient and less burdensome.

Choosing the Best Employer of Record Services

When evaluating the best Employer of Record services, focus on:

• Experience in the Australian job market
  
• Transparent pricing with no hidden fees
  
• Support for international contractor management
  
• Local HR and legal compliance expertise
  
• Strong track record with tech sector clients
  

Partnering with a trusted EOR company ensures that your employment practices remain compliant while giving your team everything they need to succeed.

Final Thoughts: Team Apac Can Help You Scale in Australia

Hiring in Australia doesn’t have to be complicated. By working with an experienced EOR company, you can hire software developers, pay them compliantly, and manage them effectively—all without the cost and complexity of setting up a local entity.

At Team Apac, we specialize in supporting global businesses looking to hire remote employees across the Asia-Pacific region. As one of the top EOR providers, we deliver comprehensive global employment solutions, including international payroll services, benefits management, and ongoing HR compliance.Whether you’re hiring one developer or building a full engineering team in Australia, Team Apac ensures you get there faster—with less risk and more peace of mind.