Is GST charged on recruitment placement fees in Australia?

Yes, GST at 10% is charged on recruitment placement fees in Australia. If your agency is registered for GST (mandatory once turnover exceeds A$75,000), you must add 10% GST to your placement fee and remit it to the ATO.

How do you calculate a recruitment placement fee?

Multiply the candidate's annual salary by your agreed fee percentage. For example, a A$100,000 salary at 18% equals a A$18,000 placement fee ex-GST. Add 10% GST (A$1,800) for a total invoice of A$19,800 inc-GST.

Placement Fee Calculator Australia

The standard recruitment placement fee in Australia ranges from 12% to 25% of the candidate's first-year annual salary. Executive search mandates may reach 30% or higher. Fees are typically invoiced on candidate start date, with a rebate period of 8 to 12 weeks. GST at 10% applies for agencies registered with the ATO. Read more about placement fee structures.

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Candidate Annual Salary

Fee Percentage 18%

Include GST (10%)

Your Placement Fee

Placement fee (ex-GST) A$18,000

GST (10%) A$1,800

                    Total fee (inc-GST)
                    A$19,800
                

That placement fee is equivalent to 33 months of a typical CRM subscription at A$600/mo — or 404 months of Kolvera Pro at A$119/mo. One placement funds your entire tech stack for years.

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Frequently Asked Questions

What is the standard recruitment placement fee in Australia?

The standard recruitment placement fee in Australia typically ranges from 12% to 25% of the candidate's annual salary package. Contingent placements for mid-level roles usually sit between 15% and 20%, while exclusive or retained searches command 20% to 25%. Executive search or highly specialised roles can attract fees of 25% to 33%. The fee is negotiable and depends on the difficulty of the search, the seniority of the role, and whether the engagement is contingent or retained.

Is GST charged on recruitment placement fees?

Yes. If your recruitment agency is registered for GST (which is mandatory once your annual turnover exceeds A$75,000), you are required to charge 10% GST on your placement fees. The GST amount is added on top of your fee and must be remitted to the ATO in your quarterly BAS. Your client can claim the GST as an input tax credit if they are also GST-registered.

When is the placement fee usually invoiced?

In Australia, the placement fee is typically invoiced on the candidate's start date, with payment terms of 14 to 30 days. Some agencies invoice 50% on acceptance and 50% on start date. Most agreements include a rebate (guarantee) period of 8 to 12 weeks, during which a pro-rata refund or free replacement is offered if the candidate leaves.

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Frequently Asked Questions

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