26 June, 2026
Right now, domestic hires are everything wrong for your budget. Currently, Australian business owners are facing intense pressure from the rising superannuation guarantee. On top of that, there are issues with strict Fair Work regulations and high local salary expectations.
Now, you’re contemplating, “Does local hiring pay off? Or should I hire a remote assistant for my company in Australia?”
Hiring Australian employees may have the advantage of in-person engagements. However, with modern tools, a cost-effective alternative to local hiring in Australia is just a click away.
Go from overwhelmed entrepreneurs to deeply focused business leaders with a dedicated remote professional.
Join us as we uncover the hidden costs of hiring local staff in Australia. Learn how to reduce staff costs for an SMB and business risks with a managed remote assistant service.
The True Cost of Australian Payroll in 2026
Traditional office settings in Australia are accustomed to local hiring. Why? Because it has always been the most reliable and cost-effective option when filling open positions. Nowadays, it’s not always true.
The cost of every employee you bring into the organisation is difficult to anticipate because it’s never linear. Every time your business grows, your employment costs rise in the most uneven ways.
Read along as we tackle the financial audit of a remote assistant vs. a local employee.
Beyond the Base Salary: Super, WorkCover, and Leave Loading
When you hire local workers in the Land Down Under, paying the monthly salary is the least of your worries. From mandatory to operational expenditures, the costs rise with an additional domestic headcount.
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Superannuation is a mandatory contribution set aside to fund an employee’s retirement. As of July 2025, the superannuation guarantee stands at 11.5% with a planned increase to 12% by July 2026.
In calculation, your local worker with an annual salary of $70,000 AUD has an $8,400 superannuation contribution. This is added to the base pay every year.
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Leave entitlements include the annual leave credits available to your local employees. Currently, it is set at 7.7% of the base wage (28 days per year).
Meanwhile, sick leave is 3.8%, and long-service leave is 1.7%. If you add all of these leave entitlements together, they total 13.2% of the continuing salary expenses.
- Insurance accrues 1 to 3 percent of an Aussie worker’s salary for an administrative position. For jobs that require hard labour in high-risk sectors, compensation is far higher, ranging between 3% and 8% and beyond.
- Payroll tax only takes effect if the total salary surpasses the state’s minimum threshold. This greatly affects your budget as it increases the costs as the company expands.
These are financial factors that make your local staff incredibly expensive, prompting companies to outsource.
The Compliance Burden and Fair Work Regulations
Adhering to the National Employment Standards is important for maintaining compliance.
Some of the employee entitlements established by NES for Australian workers cover the following:
- Maximum weekly hours (38 hours for full-time staff)
- Annual leave credits (4 weeks in 12 months)
- Personal leave
- Public holidays
- Flexible working arrangements
- Notice of termination
- Fair Work Information Statement. A document handed by the employer to the employee when they start working. It outlines their workplace entitlements and protection.
Unfortunately, in Australia, it’s hard to keep up with the payroll regulations, particularly if you don’t understand the legal essentials. The regulatory authorities in the country keep a close watch on wage compliance to ensure consistent treatment is observed in the workplace.
Failing to meet payroll practises leads to hefty fines and damages to your business. As a result, managing a local workforce is incredibly stressful and time-consuming. The more your business scales, the bigger your compliance obligations will be.
Explore how to scale finances in 2026 with a bookkeeping remote assistant Australia.
The Managed Remote Assistant Model: A Predictable Financial Alternative
Working with a managed remote assistant is the best way to hire remote professionals. In this model, you’ll partner with a service provider that will oversee your assistant. From start to end, they will handle all the nitty-gritty business of workforce management.
As a client in a managed remote assistant service, you’ll pay your provider a predictable, flat monthly fee, which reduces risk.
Transparent Monthly Rates with Zero Hidden Fees
Every company hates surprises, most specifically additional expenses that break your budget. The good news is that these unexpected expenses don’t have to feed your financial nightmare. A managed remote staffing solution removes the surprise cost of employment in the most straightforward way.
- Productivity-Based Pricing. In managed services, remote assistants are paid based on their output rather than “working hours.” This means you pay only for your assistant's productivity time.
- Price Transparency. Dedicated human virtual assistant companies offer transparent pricing. There are specific pricing plans and a full breakdown of the costs. As such, you know exactly what you’re paying for from the get-go, allowing for smarter budget management.
In contrast, the painful costs of an Australian payroll are always changing depending on where you are in your business. To remain competitive in a volatile market, you need to bring clarity to your employment costs. Now, a managed remote system not only reduces costs but also helps de-risk your business.
The “Managed” Difference: Why You Are Not Just Hiring a Freelancer
Teaming up with a managed remote assistant service like VAV saves you time and energy. With managed systems, you’re receiving the service fully ready for use.
There’s no need for hand-holding. The agency handles everything. From HR to performance tracking, we come in and make it work so you can focus on your job as the company’s executive.
You’re not just hiring a freelancer; you’re bringing in an entire support team to back you up. If you have concerns, you can raise them with your assigned engagement manager. They will supervise your assistant and serve as your advocate to ensure consistency and continuity.
Hire a Remote Assistant for My Company in Australia: The Financial Blueprint for Success
Outsourcing to cost-efficient countries is today’s key strategy for financial success. Top destination hubs like the Philippines and Madagascar deliver quality remote assistants without the premium price tag.
But more than cost-cutting, professionals from these regions offer competence and consistency for long-term growth.
The Philippines: The Gold Standard for Administrative Support
The Philippines is home to an English-speaking population. You’ll hardly find anyone in the country who doesn’t know how to communicate in English. Second only to Singapore in Asia, Filipino remote assistants are highly competent in engaging with international clients in English.
The Philippines also produces many skilled workers in fields such as customer service. The region is known for its superior support services, making Filipino assistants the go-to staffing solution for front-line customer interactions.
In addition, Filipino remote assistants are influenced by Western cultural practises, many of which are shared with Australian companies. They have no problem adapting to culturally diverse environments. They’re also highly regarded for being friendly and hospitable, ensuring meaningful interactions.
Madagascar: High-Calibre Tech and Analytical Talent
Madagascar has a young, tech-savvy workforce with a strong educational background. The region’s educational system emphasises analytical skills to meet the evolving needs of global businesses.
On top of that, Malagasy workers are praised for their adaptability. They’re committed and quick to learn, fully ready to adjust and keep pace with any industry.
This isn’t at all surprising, considering the government often invests in infrastructure and technology to facilitate outsourced activities. In fact, the country also boasts free zones to drive companies that want to outsource.
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Managing Time Zones Without Losing Sleep
Coordinating an offshore team in the Philippines and Madagascar with your Australian business operations requires careful planning and consideration.
Here’s how you can address coordination difficulties with AEST/AWST when hiring workers from the Philippines/Madagascar:
Malagasy remote assistants can serve as your “overnight execution” team. You can leverage the follow-the-sun approach and ensure business continuity with their support. Assistants from Madagascar can process tasks at 5:00 PM, allowing you to wake up to completed work the next morning.
Additionally, with a minimal time zone difference between the Philippines and Australia, you can enjoy real-time collaboration. This overlap makes it easy to manage tasks without needing to adjust schedules. You receive outputs without delay and facilitate seamless integration.
In a nutshell, you can thrive with both real-time collaboration and expanded service coverage.
Get acquainted with these 10 online collaboration tools.
Recession-Proof Business: How to Scale an Australian Business with Remote Staff and Hybrid Team
For organisations that want to maintain revenue streams despite economic downturns, the key is to remain adaptable and flexible.
Use hybrid models and keep up with technical progress through building your company’s most important asset. Yes, we’re talking about your workforce—the people manning the trenches so you can go after your dreams with a concrete plan.
Keeping Strategic Roles Local, Moving Tasks Offshore
Right now, the smartest way to run your business is to combine local leadership with remote execution. Leverage remote talent from Madagascar and the Philippines to handle the time-draining tasks, such as email management and data entry. In doing so, you can free up local capital for strategic, onshore growth.
This strategy ensures your business remains agile and responsive despite the painful cost of Australian payroll. You can also keep your core functions closer to your business market that requires local expertise.
Reinvesting Saved Capital into Local Market Growth
The moment you decide to “hire a remote assistant for my company in Australia,” you’re in for massive cost savings. You can save up to 70% operating costs, which can be reinvested to create exponential returns.
Whether it's integrating new technology or expanding sales operations, you can pursue strategic initiatives to grow the company. You go from “spending less” to “growing more,” reinforcing your competitive position in the local scene.
All these while running day-to-day processes in low-cost countries, such as the Philippines and Madagascar. This is how you turn cost-savings into a growth engine.
It’s Time for a Financial Upgrade with VAV
The way we work is changing fast. Remote and hybrid work models have become the new norm of doing business. It showed business owners that there’s a smart way to overcome the overheads for Australian small businesses.
You can outsource, cut costs and reduce business risk. All you need is the right managed remote assistant services to make it happen.
Calculate your potential savings with VAV.
Reach out and book a free consultation with our experts right now.
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Scale Faster TodayProudly crafted by a human. Mary Anne Antonio is a dedicated English Web Copywriter for the VAV team.