Navigating Changing Payroll Legislation in 2025

With 2025 bringing new payroll regulations, businesses must stayproactive to ensure wage compliance and avoid legal risks. Changing legislations, increased enforcement of wage criminalisation laws, and evolving payroll audit requirements mean that businesses can no longer afford to take a reactive approach.

Understanding these changes and implementing payroll audits can protect your business from costly fines and reputational damage. This guide will help you navigate the evolving payroll landscape and ensure your payroll compliance strategies are up to date.

What’s Changing in Payroll Legislation in 2025?

Each year, governments refine workplace laws to improve wage compliance and protect employees. Some key changes expected in2025 include:

• Stricter Wage Compliance Regulations – Governments are cracking down on underpayments, requiring businesses to maintain more detailed payroll records.
• Expansion of Wage Criminalisation Laws – Employers who knowingly underpay staff mayface criminal penalties.
• Increased Payroll Audit Requirements – Regulators are conducting more audits to ensure businesses adhere to wage laws.
• Technology-Driven Compliance Measures – Businesses must implement HR systems and technology payroll solutions to improve accuracy and reporting.

Why Businesses Must Prioritise Payroll Compliance in 2025

Failing to comply with updated payroll laws can result in severe financial penalties, legal consequences, and damage to a company’s reputation. Common payroll risks include:

• Incorrect Wage Payments – Miscalculations can lead to wage underpayments or overpayments.
• Superannuation & Tax Errors – Businesses must ensure that employee superannuation and tax deductions are accurate and timely.
• Non-Compliance with Awards & Agreements – Incorrectly classifying employees ormisapplying modern awards can lead to costly claims.

How to Stay Compliant with Changing Payroll Legislation

1. Conduct Regular Wage Audits

Performing payroll audits helps businesses identify and correct compliance issues before they escalate. Regular auditing ensures that employee wages, entitlements, and deductions are accurate.

2. Implement HR Systems for Payroll Accuracy

Manually processing payroll increases the risk of errors. Businesses should leverage HR systems and payroll compliance software to automate calculations and ensure real-time accuracy.

3. Keep Up with Changing Legislations

Businesses must monitor legislative updates to adapt their payroll processes accordingly. Using compliance platforms like Subi can help companies stay informed about payroll law changes.

4. Ensure Correct Employee Classification

Incorrect employee classification is a common cause of non-compliance. Review contracts to ensure employees are correctly classified under the right award or enterprise agreement.

5. Train HR and Payroll Teams

HR and payroll teams must stay updated on wage compliance changes. Providing regular training can help employees understand evolving regulations and minimise compliance risks.

How Subi Can Help

Subi’s automated wage audit and payroll compliance solutions help businesses navigate the complexities of changing payroll laws. By integrating technology payroll tools, Subi ensures accurate audits, real-time compliance tracking, and seamless payroll management.

With wage criminalisation laws tightening and compliance requirements increasing, now is the time to ensure your payroll systems are up to date.

If you need assistance, please reach out at hello@subi.au.