Compliance check: ensuring your payroll meets Australian regulations

As we approach the midpoint of 2025, Australian businesses are facing a rapidly evolving payroll landscape. With new regulations in effect and more changes on the horizon, it’s crucial to stay informed and ensure your payroll processes are compliant. Let’s dive into the key areas you need to focus on to keep your payroll in check and your business out of hot water. 

The new face of wage theft: criminal consequences

Since January 1, 2025, intentional underpayment of wages has become a criminal offence in Australia. This landmark change means that employers found guilty of deliberately underpaying their staff could face not just hefty fines, but also potential imprisonment. It’s a clear message from the government: wage theft will not be tolerated.

To avoid falling foul of these new laws, it’s essential to:

1. Regularly audit your payroll processes.
2. Ensure all staff involved in payroll are well-trained and up-to-date with current regulations.
3. Implement robust systems to track and calculate employee entitlements accurately.

Superannuation: the final step

July 1, 2025, marks a significant milestone in Australia’s superannuation landscape. The Superannuation Guarantee (SG) rate will increase to 12%, completing the government’s planned series of increases. This change affects all employers, so it’s crucial to:

• Update your payroll systems to reflect the new SG rate.
• Communicate the change to your employees.
• Ensure your budgets account for the increased superannuation contributions.

Navigating the Fair Work Act

Compliance with the Fair Work Act remains a cornerstone of good payroll management. The Fair Work Ombudsman (FWO) has updated its Compliance and Enforcement Policy in January 2025, providing fresh guidance on how businesses can stay on the right side of the law. 

Key points to remember:

• Familiarise yourself with the latest version of the Fair Work Act.
• Regularly check for updates to relevant awards and enterprise agreements.
• Implement a system for tracking employee hours, especially for casual and shift workers. 

Embracing technology for compliance

In 2025, leveraging technology is not just an option, it’s necessary for ensuring payroll compliance. Investing in robust payroll software that integrates with your HR and finance systems can help you:

• Automate complex calculations.
• Stay up-to-date with legislative changes. 
• Provide real-time reporting for better decision making.

Remember the right technology can be a powerful ally in your compliance efforts.  

The Voluntary Small Business Wage Compliance Code

For small businesses, the government introduced the Voluntary Small Business Wage Compliance Code. This framework provides clear guidelines on how to ensure correct employee payments and avoid unintentional breaches. By following the Code, small businesses can demonstrate their commitment to compliance, potentially offering some protection against crime liability. 

If you’re a small business owner, make sure to:

• Familiarise yourself with the Code.
• Implement guidelines in your payroll processes.
• Keep detailed records of your compliance efforts. 

Staying ahead of tax changes

The Australian Taxation Office (ATO) revised income tax brackets and Medicare levy thresholds in July 2024. These changes impact PAYG withholding calculations. As we move through 2025, it’s important to:

• Ensure your payroll system is using the current tax tables.
• Regularly check for any mid-year tax updates from the ATO.
• Provide clear communication to employees about any changes to their take-home pay.

The importance of continuous learning

With the payroll landscape evolving so rapidly, continuous learning is key to maintaining compliance. Consider:

• Attending industry webinars and conferences.
• Subscribing to updates from relevant government bodies.
• Investing in regular training for your payroll team.

Microkeeper: your partner in payroll compliance

At Microkeeper, we understand the challenges of maintaining payroll compliance in this complex environment. Our software is designed to help Australian businesses navigate these changes with ease, offering:

• Flexible configuration to reflect the latest legislative changes.  
• Robust reporting tools for audit readiness.
• Integrated time and attendance tracking for accurate wage calculations. 

Remember, staying compliant isn’t just about avoiding penalties, it’s about building trust with your employees and creating a fair workplace for all. 

As we navigate through 2025, the key to payroll compliance lies in staying informed, leveraging the right technology, and maintaining a proactive approach to change. By focusing on these areas, you can ensure your payroll processes not only meet current regulations but are also ready for whatever changes the future may bring. 

Stay compliant, stay confident, and let Microkeeper help you manage your payroll with ease.