As we approach the end of the 2024–25 financial year, Australian small businesses face a dynamic payroll landscape. From legislative reforms to industry events, staying updated is crucial for compliance and operational efficiency.
Here’s a concise overview of the most significant payroll developments and upcoming events in 2025.
Major Payroll Changes in 2025
1. Superannuation Guarantee Increase
Effective 1 July 2025, the Superannuation Guarantee (SG) rate will rise from 11.5% to 12%. This change impacts employer contributions, potentially increasing payroll expenses. Businesses should review employment contracts to determine if superannuation is included in total remuneration or paid on top of base salaries.
2. Criminalization of Wage Theft
Starting 1 January 2025, deliberate underpayment of wages is a criminal offense in Australia.
Penalties include fines up to $8.25 million for corporations and 10 years imprisonment for individuals.
This underscores the importance of accurate payroll practices and regular audits.
3. Enterprise Agreements Driving Wage Growth
In the year leading up to March 2025, wages increased by 3.4%, with enterprise agreements contributing to over half of this growth. Public sector agreements, in particular, have been significant drivers.
Notable Payroll Events in 2025
Australian Payroll Summit – Melbourne
Held on 28 March 2025, the Australian Payroll Summit is a premier event for payroll professionals. Attendees gain insights into compliance updates, best practices, and emerging trends.
GPA Payroll Leadership Symposium – Sydney
On 15 May 2025, the Global Payroll Association hosted a symposium focusing on “Trust, Transparency, and Transformation” in payroll. The event emphasized leadership strategies in a changing payroll environment.
Preparing Your Business
To navigate these changes:
- Review Employment Contracts: Ensure clarity on superannuation contributions and compliance with new SG rates.
- Conduct Payroll Audits: Regular audits can identify discrepancies and prevent potential legal issues related to wage underpayments.
- Stay Informed: Subscribe to updates from reputable sources to keep abreast of legislative changes and industry best practices.
For in-depth training and support enrol into an Online Payroll Course today.
Stay proactive and informed to ensure your business remains compliant and efficient in 2025.
