PEO Services in Australia

A co-employment model for companies that want to share the employer relationship in Australia rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in Australia than in the US, so we will tell you honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Australia

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Australian staff: you keep direction and day-to-day control, while the partner administers payroll, PAYG income tax, the Superannuation Guarantee, and HR compliance under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, PAYG income tax, the Superannuation Guarantee, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Australia, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in Australia, EOR is simpler. We will tell you honestly whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in Australia, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Australian partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Australian employment terms under the Fair Work Act, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

PAYG income tax, the Superannuation Guarantee, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in Australia costs

As with EOR, two parts: the statutory cost of employment (a single, predictable Superannuation Guarantee percentage, not a shared employer/employee split) and the partner service fee.

Superannuation Guarantee (employer)

12% of ordinary time earnings, paid into the employee’s complying super fund up to the AUD 270,830 annual maximum contribution base, all administered under the shared employer arrangement.

Minimum wage (2026-27)

AUD 26.44 per hour, AUD 1,004.90 per week (38-hour week) for 2026-27, one national rate with award-based variation on top to track.

Income tax & Medicare Levy (employee)

Progressive rates from 0% to 45%, plus a 2% Medicare Levy on top for most taxpayers, withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, Australia’s Superannuation Guarantee still has to be paid to the right fund on the right payday by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Australian PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Under a shared PEO arrangement, Australia’s Superannuation Guarantee still has to reach the right complying fund inside the new Payday Super window, and getting that timing wrong lands on the co-employer relationship, not just the payslip. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly Australian compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Australian Pty Ltd, as your Australian presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties an Australian PEO shoulders

Whichever model you use, the underlying Australian rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Australian employment contracts and working-time rules (38-hour standard week, Modern Award premiums, minimum 4 weeks’ annual leave). PAYG income tax and the Superannuation Guarantee withheld or paid and reported correctly. Statutory benefits and notice applied properly.

Statutory protections & exits

Statutory notice and the unfair-dismissal protections Australian employees gain once the minimum employment period is served under the Fair Work Act, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Australian employment contract under the Fair Work Act, issued and maintained for you.

Payroll & filings

Monthly payroll run, with PAYG income tax and the Superannuation Guarantee calculated, withheld or paid, and reported each month.

Statutory benefits

All statutory benefits administered: annual leave, personal/carer’s leave, parental leave, notice.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in Australia.

What is the difference between PEO and EOR in Australia?

With an EOR, the partner is the sole legal employer of your Australian staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Australia, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Australian entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own Australian entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, PAYG income tax, the Superannuation Guarantee, statutory benefits, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Fair Work Act obligations are met.

The statutory employer cost (12% Superannuation Guarantee) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Australian Pty Ltd, as your Australian presence develops.

Not sure whether PEO or EOR is right for Australia?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (ATO, Fair Work Commission, ASIC). Figures change; we confirm the current position when we scope your hire.