Payroll Priorities for SMEs: What to Focus on in the Year Ahead

The coming year will bring big changes for payroll in Australia, and small to medium businesses (SMEs) need to be prepared. From rising superannuation rates to new industrial relations rules and upcoming payday super reforms, staying on top of payroll compliance is no longer just good practice — it’s business-critical.

Here’s a practical checklist for SME business owners and payroll managers to stay ahead between now and July 2026.

1. Stay Ahead of Legislative Changes

Payroll rules are changing faster than ever. For SMEs, the best way to stay compliant is to keep things simple:

• Create a one-page payroll calendar showing key changes and deadlines.
  
• Include what needs to be done, who’s responsible, and when it’s due.
  
• Share it with your accountant or bookkeeper, and review it quarterly.

Even if you’re outsourcing payroll, you’re still legally responsible, so make sure everyone is on the same page.

2. Superannuation Guarantee is Rising to 12%

From 1 July, the superannuation guarantee (SG) will increase to 12%. This applies to all eligible payments — including bonuses, commissions, and cashed-out leave.

What you can do now:

• Check that your payroll software is ready for the update.
  
• Review employment contracts to ensure they reflect the correct SG obligations.
  
• Communicate the change to your staff early.

3. Closing Loopholes: Stronger Rules and Penalties

New laws are tightening the rules around pay equity and wage compliance:

• Wage underpayments could now lead to criminal charges (from Jan 2025).
  
• Labour hire workers must receive equal pay for equal work (“same job, same pay”).

Even if your business doesn’t use labour hire, it’s important to:

• Review how you apply awards and pay rates.
  
• Keep accurate records of hours, rates, and entitlements.
  
• Ask your payroll provider or advisor to run a quick compliance check.
  

4. New Right to Disconnect Laws

From 26 August 2024 (or 2025 for small businesses), employees can refuse unreasonable contact outside of work hours.

Simple actions you can take:

• Update employment contracts and policies.
  
• Avoid sending “after-hours” requests unless it’s truly urgent.
  
• Train managers on respectful communication boundaries.

5. Embrace Smart Technology, But Keep It Simple

Payroll software is becoming more powerful, with features like automation and AI. But for SMEs, it’s not about fancy tools — it’s about clean processes.

Before upgrading your payroll tech:

• Clean up your employee data — no duplicates or outdated info.
  
• Test changes in a small area before rolling out across the business.
  
• Ask questions about data security if using cloud-based solutions.

6. Track Your Payroll Costs

Want to know if your payroll process is efficient? Start by tracking a few basic numbers:

• Cost per pay run
  
• Number of payroll errors or late payments
  
• Time spent answering payroll queries

With the SG increase and other changes coming, these metrics help you decide if investing in new tools or outsourcing is worth it.

7. Protect Against Payroll Fraud

SMEs are not immune to fraud — in fact, smaller teams often have fewer controls. To protect your business:

• Review who has access to payroll each month.
  
• Set up alerts for odd entries (like duplicate bank accounts or sudden bonus spikes).
  
• Run basic cybersecurity training — phishing scams targeting payroll are on the rise.

8. Invest in Payroll Knowledge

You don’t need to be an expert, but someone in your team should be trained. Encourage your bookkeeper, office manager, or payroll admin to take a short course like:

• Certificate IV in Payroll Administration
  
• Diploma of Payroll Management

Trained staff are more likely to catch errors early and help you stay compliant.

Final Word

The next year will test the agility of every small business payroll function. But it’s also an opportunity. By staying informed, keeping your systems tidy, and investing in people and processes, payroll can go from being a headache to a strategic asset.

As payroll expert Tracy Angwin says: “Payroll shouldn’t be seen as a cost centre — it can deliver real value to your business.”