Local Hire vs Offshore Costs in Australia: A Complete Breakdown for 2026
Rising wages, talent shortages, superannuation increases, and compliance requirements have forced Australian businesses to take a closer look at offshore costs compared to local hiring expenses.
One particular research revealed that more than half of Australian leaders are now considering offshore staff. They’re thinking outside the box simply put.
While local hiring offers proximity and familiarity, offshoring presents a strategic advantage, a scalable edge to transform your business operation.
In this article, we’ll clarify which model can deliver real value for small businesses, along with a cost breakdown of the two.
The Reality of Local Hiring for Australians Businesses
There’s a significant financial commitment with hiring locally in Australia, especially with employment law changes in 2026.
The upcoming rollout of Payday Super and Paid Parental Leave (PPL) arrangement, along with the first comprehensive review of the National Employment Standards (NES) since the Fair Work Act 2009 are all contributing to these changes that employers must consider.
At the same time, talent shortages remain a major catalyst for change. Recent workforce data shows that approximately 75% of Australian businesses report difficulty finding suitably qualified local candidates. This means employers are not only paying more — they are also competing harder for talent.
Local Hiring Costs Breakdown
Local hiring may feel like the safest and most traditional route. Face-to-face meetings, shared time zones, and cultural alignment are often seen as advantages.
However, the true cost goes far beyond the advertised salary.
This means higher salaries, benefits, office space, and compliance costs. For instance, in Australia, the average salary for an administrative assistant ranges between $42,000 and $75,000 per year. For roles in marketing, operations, or finance, that figure can easily climb above $80,000–$100,000 annually.
But salary is only the starting point.
According to a comprehensive analysis of Australian employment costs, a nominal $70,000 salary can cost an employer between $80,550 and $87,550 when you include superannuation, workers' compensation, payroll tax, and leave provisions before accounting for recruitment, equipment, training, and overhead.
Scaling Australian Businesses with Offshore Staff Hiring
The concept of the workplace has dramatically changed. And these days, we’re now seeing a shift towards offshore staff hiring.
The data shows that one in five workers are working remotely. At the same time, about %16 of businesses are operating remotely without maintaining a physical office.
Typically, this involves hiring staff outside Australia. These professionals are globally known as virtual assistants who work remotely. Therefore, if you’re planning to hire a virtual assistant, you can engage them either directly as independent contractors or through reputable outsourcing providers.
Offshore Costs Breakdown
The difference in offshore costs lies not just in salary but in the overall employment structure.
Since they’re operating remotely outside Australia, they’re not responsible for superannuation, payroll tax, workers’ compensation, or leave entitlements under Australian law.
If the average salary for a local hire in an administrative assistant role climbs to $75,000 per year before factoring in employment compliance costs, an offshore administrative assistant may cost a fraction of that amount.
Here’s a complete offshore costs breakdown for choosing to hire a virtual assistant:
- Entry-level: Approximately $50,000 annually, with an average hourly rate of $24.95 per hour.
- Experienced (5–9 years): Virtual assistants with experience cost around $81,000 annually or $33.13 per hour.
- Top-tier: These virtual assistants usually specialised in high-value services and the offshore costs are around $95,000+ annually or $46.64 per hour.
Why Australian Businesses Choose Hiring Offshore Staff
Besides the mere fact that offshore hiring can reduce business operational expenses, this model also allows Australian businesses to scale efficiently at a much faster pace.
Most importantly, it does not aim to replace the entire workforce but rather to complement local hiring, strategically combining offshore staff with in-house employees to create hybrid teams that balance cost efficiency, expertise, and operational control.
According to the latest stats on hybrid workplaces, 64% of leaders reported that their companies use a hybrid model. It delivers the best of both worlds.
How Offshore Costs Can Deliver More Real Value?
As we approach the next quarter of 2026, offshore costs should not be seen purely as a way to cut expenses, but rather as a lever for business growth and operational efficiency.
Here at Empire Outsourced, we specialise in connecting you with skilled virtual assistants, customer support staff, administrative staff, marketing support, specialist roles, and more—all tailored to your specific business needs.
Looking to scale your business with offshore staff who can deliver more real value? Hire a virtual assistant today!
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