The next year will be a pivotal one for Australian payroll teams. From the last scheduled rise in the superannuation guarantee to new industrial relations obligations and looming payday super reforms, the landscape is shifting fast. Below is a strategic checklist of what payroll managers should be planning between now and July 2026, framed through the best practice principles in Profit from Payroll.
Legislative horizon: anticipate change
Staying compliant has always been payroll’s bedrock, yet the volume and speed of change are accelerating. Build a one-page legislative calendar that identifies not just commencement dates but the practical tasks, testing windows and sign-offs required for each reform. This single source of truth keeps finance, HR and IT aligned and reflects Tracy Angwin’s advice that “ignorance is no excuse” once regulators come knocking .
Superannuation guarantee hits 12 per cent
From the first full pay run after 1 July 2025 every eligible worker must receive 12 per cent SG. The ATO confirms that all pay items, including bonuses and cashed out leave, inherit the 12 per cent rate.
Closing loopholes: tougher penalties and ‘same job, same pay’
The Closing Loopholes Acts introduce staged obligations:
-
criminal penalties for intentional wage underpayments from 1 January 2025
-
same-job-same-pay orders, already tested in the mining industry, which compel labour-hire workers to receive parity with directly employed staff
Conduct a risk audit that cross checks award interpretation, labour hire contracts and overtime rules. Where gaps emerge, document remediation steps and keep evidence of board oversight – a practice Tracy recommends whenever non-compliance is uncovered .
Right to disconnect: policy and system tweaks
From 26 August 2024 (and 26 August 2025 for small business) employees may refuse unreasonable contact outside working hours. Ensure:
-
employment contracts and payroll self-service alerts reflect the new right
-
rostering and time-sheet notifications respect each employee’s agreed span of hours
-
managers are trained to avoid “please action tonight” texts that could breach the Act.
Leverage technology: automation, analytics and AI
Payroll software vendors are racing to embed AI for anomaly detection, automated award mapping and chat based employee support. However automation multiplies either efficiency or chaos depending on the underlying process . Before adopting shiny tools:
-
tidy your data – duplicates and legacy codes will undermine any AI model
-
pilot in a contained business unit, measuring exception rates against pre-AI baselines
-
insist on vendor transparency around data security and model governance.
Measure and benchmark your costs
You cannot prove value without metrics. Track total cost per payslip and per employee, just as APA benchmarking studies do . Overlay these with error rates, off cycle payments and enquiry volumes. With the SG increase and imminent payday super, these indicators will tell finance whether extra investment in automation is delivering a dividend.
Strengthen fraud controls and cybersecurity
Large frauds thrive on mediocre processes . Over the coming year:
-
run an access rights review the day after each payroll, role based access must match actual duties
-
implement exception reports that flag negative net pays, duplicate bank accounts and unusually high allowances
-
enlist IT to conduct phishing simulations targeting payroll staff, now prime targets for AI generated deep fake requests.
Invest in people and qualifications
Technology will not replace the need for skilled professionals. Encourage team members to enrol in the Certificate IV in Payroll Administration or the Diploma of Payroll Management to deepen compliance and analytical capability . Qualified staff are more likely to spot anomalies early and contribute to strategic conversations, not just transactional processing.
The next 12 months demand equal parts vigilance and vision. By marrying clear legislative road maps with process discipline, data driven insight and continuous professional development, payroll managers can convert change into an opportunity to enhance accuracy, transparency and organisational trust. In Tracy Angwin’s words, payroll must move “from being a mere cost centre to a department which can deliver real benefits to businesses” .
