What agencies actually charge
| Arrangement | Typical fee (2026, industry sources) | On an A$80,000 role |
|---|---|---|
| Permanent placement, standard roles | 15 to 20 per cent of first-year salary (sometimes package) | A$12,000 to A$16,000 |
| Permanent placement, specialist, senior or hard to fill | 25 to 33 per cent | A$20,000 to A$26,000 |
| Temporary and labour hire | Hourly margin on the worker’s cost for the term | Varies with hours |
| Fixed-fee or pay-on-performance recruiters | Flat fee or fee tied to the hire staying | Often A$3,000 to A$8,000 |
Most agencies include a replacement guarantee of three to six months, which is the real product: they absorb early-departure risk. Fees are negotiable, and the base the percentage applies to (salary or total package) matters as much as the rate.
Hiring directly, step by step
- Write a lawful, specific ad. Exact title, location, employment type, pay or range, duties, the requirements that are genuinely necessary, how to apply. Job ad template.
- Post on two or three boards that your candidate reads. Free options first (Workforce Australia, Jora, Indeed organic, SponsorTalent), a paid SEEK ad when the role proves hard. Sites compared.
- Search a candidate database instead of waiting. Workforce Australia’s candidate search is free; CareerOne charges credits; SponsorTalent is free to search with visa status, assessment and English visible, A$30 to unlock a contact. Where to search.
- Screen by phone in ten minutes on the three things that disqualify: right to work (run a VEVO check for visa holders), availability, and the one non-negotiable skill.
- Interview twice, once with the person they will report to, once with a practical task or a site walk.
- Check two references yourself, by phone, with the same four questions each time.
- Issue a written offer and contract under the relevant award or enterprise agreement, with the Fair Work Information Statement, superannuation and tax file declaration. Fair Work’s templates are free.
- Onboard deliberately: a written first-month plan is the cheapest replacement guarantee you will ever buy.
When an agency is still worth the fee
- You need five or more hires in a quarter and nobody to run the process.
- The role is senior or specialised enough that the candidates are not applying to ads; they are being approached.
- You need someone on site next week on a temporary basis; labour hire exists for exactly that.
- The hire is from overseas and you want someone to run the candidate side end to end, in which case check who holds the sponsorship and whether any fee is charged to the worker (unlawful): agency, labour hire or direct.
When the candidate does not exist locally
An agency cannot invent a local electrician, chef or nurse where there is none, and its fee does not change that. If two ads of 28 days or more and a database search have produced no suitable Australian applicant, the realistic options are a visa holder already in Australia (who can work for you now), training up, or sponsoring from overseas, which costs A$3,150 in government charges for a two-year 482 at small-business rates plus fixed migration fees, well under one agency placement fee. Is sponsoring worth it? and what to do when you cannot find staff set the options out in order.
Frequently asked questions
How much do recruitment agencies charge in Australia? Commonly 15 to 20 per cent of first-year salary for a permanent placement, rising to 25 to 33 per cent for senior, specialist or hard-to-fill roles; temporary and labour-hire arrangements charge an hourly margin instead. Fees are negotiable and usually include a replacement guarantee.
Can a small business hire without a recruiter? Yes, and most do. A lawful ad, two or three boards (several free), a candidate database search, phone screening, two interviews, reference checks and a compliant contract cover the process. The time cost is a few hours a week for a month.
Is there a free recruitment service in Australia? Workforce Australia provides free job posting, candidate search and, through its providers, free recruitment support and wage subsidies for eligible hires. SponsorTalent is free to list on and search, charging A$30 only when you unlock a candidate’s contact.
Can a recruitment agency charge the worker? Not for employment placement in most Australian states, and never for visa sponsorship: it is an offence for anyone to ask for or receive a payment or benefit in return for sponsorship. Any arrangement where the worker pays is a warning sign.
What if nobody suitable applies? Widen the search to visa holders already in Australia, consider training or an apprenticeship, or sponsor from overseas. Keep the dated ads: two of 28 days or more within four months are the labour market testing evidence a sponsorship nomination requires.
Search the candidate database free
Occupation, location, visa status, skills assessment and English visible before you unlock a contact for A$30. No placement fee, ever.
Want the paperwork done? WIDEN (Keshab Chapagain, MARN 1576536) lodges sponsorship, nomination and visa applications on fixed fees; start with a 30-minute consultation, $330 inc. GST, credited if you engage.
Candidates: looking for a job yourself? Register free as a candidate.
General information only, not migration advice. SponsorTalent is a marketplace; migration advice is provided by WIDEN (Keshab Chapagain, MARN 1576536) under a service agreement. Occupation list status is read from the Department of Home Affairs lists as published; lists, caveats and labour-agreement terms change, and the Department's current page is the only authority. Figures: Department of Home Affairs price list and salary page, 1 July 2026 to 30 June 2027; processing times published 29 September 2026. No outcome can be guaranteed.