The next few years can be a lot different for any Australian business, especially in terms of how the manager handles payroll. With new regulations on the way, employers have a lot of planning to do.
Previously, we explored Australian payroll FAQs, highlighted key dates and deadlines in the Australian payroll calendar, and discussed the benefits of top HR and payroll software for Australian businesses. Today, we shift our focus to what lies ahead and shed light on future trends in Australian payroll.
In Australia, businesses are now required to use intelligent, compliant, and integrated payroll solutions, rather than outdated systems.
Additionally, with new regulations set to take effect in 2026, you will need to be prepared. Let’s discuss what’s changing and what the future of payroll in Australia holds.
What is Changing in Australian Payroll?
The Federal Treasury opened the Payday Super draft legislation for consultation on March 14, 2025, and it was open until April 11, 2025. This draft includes significant modifications to the superannuation guarantee (SG) system, which is scheduled to take effect on July 1, 2026.
The introduction of Payday Super will require employers to rethink their superannuation compliance management plans from the ground up.
This adjustment is meant to partially close the estimated $3.4 billion gap between what is currently paid to employees and what is owed to them.
Although Payday Super was included in the Federal Budget for 2023–2024, it has not yet been passed into law. The Treasury has published a fact sheet to help employers understand the impending changes.
What to Expect in 2026 for Australian Payroll
With Payday Super set to be implemented in July 2026, payroll operations in Australia are poised for a significant shift. Businesses must act now to align with new expectations. Here’s what you’ll need to prepare for:
- Real-time superannuation contribution payments with each payroll run
- Greater scrutiny of wage codes and SG calculations through the ATO's STP Phase 2 data
- Increased need for payroll automation and integration with clearinghouses
- Revised onboarding practices with emphasis on stapled super fund requests
- Pressure to adapt pay cycles and manage tighter payroll timelines
- Greater compliance responsibility and visibility across departments
Top Australian Payroll Trends 2026 To Watch Out For
Since payday super day was announced recently, we need to look for the trends and actionable strategies following it:
1. Superannuation Compliance Testing
Following the implementation of STP Phase 2, the ATO collects real-time information to determine if companies are paying SG on OTE wage codes. As a preliminary step, we propose that businesses do a wage code assessment to confirm that SG is computed on all applicable payments and that the STP reporting codes are consistent.
Following the assessment of wage codes, we propose doing sample-level testing of transactional data to ensure that the system is working as expected by the business.
2. Onboarding Processes
Employers must assess whether their internal procedures and controls will be adequate to meet the new reporting standards. When new employees join your company, we can offer best practice advice on what should be done to make sure that the necessary procedures are followed (e.g., requesting stapled Superannuation Fund details).
3. Payroll Timing
Employers should evaluate whether the changes (such as the increased payment frequencies) will affect payroll’s capacity to process the SG contributions on time, since processing time is more important than ever. As part of this, employers should consider automating reporting and integrating a clearinghouse with their payroll system to expedite procedures.
Examine whether the current employee pay cycles, such as weekly, biweekly, or monthly, are appropriate for upcoming requirements.
Future cash flows should be planned to meet the need to pay SG immediately following a pay run rather than on a quarterly basis.
Actionable Insights for Business Leaders
The recent regulations in the payroll serve as a warning to Australian businesses. More significantly, though, it serves as a guide for advancement.
Here are some strategies for your company to begin resolving payroll issues now, putting you on the right track for success in 2025 and beyond. First thing is, of course, scalable HR and Payroll Solutions Australia.
1. Leverage Payroll Technology
To ensure better data quality and close efficiency gaps, invest in tools that work seamlessly with HR and finance systems. Assess vendors according to their automation, flexibility, and ability to provide real-time compliance updates.
2. Prioritise Payroll Analytics
Adopt a data-driven approach that synchronises payroll operations with business strategy instead of concentrating solely on compliance. Utilise analytics to improve long-term planning, cut expenses, and streamline workforce management.
3. Support Your Payroll Team
Give your staff the time, resources, such as Dynamics 365 HR and Payroll, and training they require to succeed. And always have a good industry partner like DHRP to make things more seamless for you.
4. Adopt AI Gradually
Well, with the best payroll software for small businesses in Australia, you will get AI features wrapped in it. Just know that AI is your ultimate friend in every aspect of business. So, you need to incorporate it into your business with automation.
Begin small with AI adoption in compliance monitoring or award interpretation, then scale it as teams gain confidence in its capabilities.
5. Foster Collaboration Between Departments
Encourage collaboration across payroll, HR, and finance teams to foster an environment of efficiency, accuracy, and shared responsibility for preserving payroll integrity.
Next Step? Stay Informed & Get the Best HR and Payroll Software for Businesses
Payday super will have a significant impact on Australian businesses, even though it is not yet a law. At DHRP, we’re dedicated to keeping you informed about any changes to the law and assisting your company in successfully navigating these requirements.
Conclusion
In conclusion, the upcoming changes to Australian payroll, particularly with the introduction of Payday Super, highlight the urgent need for businesses to review and upgrade their systems. Partnering with a payroll implementation specialist is now more important than ever to ensure compliance, efficiency, and future-readiness.
At DHRP, we help organisations transition smoothly by offering tailored HR and payroll solutions, including the implementation of Dynamics 365 and automation strategies.
Whether you’re a small business or a large enterprise, DHRP ensures your payroll operations are aligned with regulatory requirements and business goals, giving you peace of mind as 2026 approaches. Let’s plan ahead, together.
FAQs
By 2026, Australian payroll will see trends such as AI-driven automation, cloud-based systems, real-time reporting, and seamless integration with HR platforms, enabling businesses to enhance compliance, minimise errors, and streamline workforce management processes.
Automation will reduce manual errors, improve accuracy, and speed up payroll cycles. Australian businesses can expect enhanced compliance tracking, simplified reporting, and reduced administrative costs as payroll systems increasingly adopt AI and rule-based automation technologies.
Yes, regulatory changes are expected to align with evolving workforce models. Anticipated updates may include stricter compliance requirements, enhanced reporting obligations, and new digital payroll standards to support transparency, employee rights, and government oversight.
