Australia
Since 2019, Australia’s payroll complexity ranking has moved upward due to mandatory legislative, reporting, processes and security regulations. The legislative environment in which Australian payroll is governed is notoriously complex and everchanging.
Australia’s payroll complexity explained
Currently, there are more than 100 industry or occupation awards that cover most people who work in Australia. In addition to these awards, businesses also need to administer both federal (e.g., annual and personal leave) and individual state-based entitlements (e.g., long-service leave). Superannuation is yet another key area of payroll complexity, which has its own rules and processes. Organisations need to consider elements of pay while distributing superannuation in addition to other rules such as leave loading, how to tax termination pay, etc.
The effect of payroll complexity
As briefly explained above, it’s not surprising that businesses find Australia’s payroll environment a difficult area to manage and execute effectively and accurately.
Unfortunately, we often see this resulting in costly consequences (both financial and brand-wise) for businesses who ignore or misconstrue what is required of them. As the number of employment laws and regulations increase, businesses of all sizes are facing ongoing payroll complexities, and the risk of penalties for non-compliance has never been greater.
With the constant legislative and technological changes of late, it is critical that companies are compliant and operating as efficiently as possible. This is essential for protecting wellbeing and the overall experience of employees.
This is where greater demand of the best modern HCM (Human Capital Management) solutions are emerging. Organisations are required to look for more efficient and profitable digital cloud-based tools to track their labour cost, performance and efficiency in real-time.
Download our ebook to find out more about the upcoming Australian legislation changes and how you can use modern HCM solutions to best put them into action in a positive way.
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