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As new wage laws come into place, payroll has never been more important for Aussie businesses.
HR Leader recently spoke to Shannon Karaka, country leader ANZ at Deel, about how crucial payroll is for businesses in 2025 and what the possible wake-up calls could be for businesses in terms of inefficient payroll.
“2025 is poised to be a transformative year as businesses increasingly recognise the significant costs and risks associated with outdated, manual payroll systems. Recent data from Deel indicates that almost three in four (71 per cent) HR and finance professionals rely on up to five different tools to manage payroll, adding to overall cost, complexity and likelihood of errors,” Karaka said.
“This realisation will drive significant shifts toward SaaS-based unified platforms that streamline payroll processes, centralise data, automate calculations, and ensure compliance, ultimately reducing the administrative burden on HR teams.”
As workforces continue to expand beyond the traditional in-office workplace into a more global team, payroll systems must adapt and excel, taking into account the complexities that arise with a global workforce.
“In an era where workforces are increasingly global, payroll systems face mounting pressure to adapt to diverse regulatory, tax, and currency requirements across multiple jurisdictions. Existing systems often struggle to meet these demands, leading to significant operational challenges.
“While many providers claim to offer global coverage, they typically rely on local partners for compliance and payments, which can result in inconsistencies, inefficiencies, and gaps in service delivery,” Karaka said.
“This patchwork approach complicates communication and coordination, increasing the administrative burden on HR teams while hindering their ability to provide timely and accurate information to employees.”
Karaka believes that this global race towards creating that one payroll system that ‘rules them all’ will only intensify in 2025.
“As global operations expand, the demand for truly global payroll solutions will intensify, prompting organisations to invest in unified platforms that streamline operations and support a cohesive payroll strategy across their global workforce,” Karaka said.
A major takeaway from Karaka was how the new wage laws, which commenced on 1 January 2025, could impact employers and businesses, thus stressing the importance of accurate payroll practices.
“Compliance will remain a critical focus for businesses, especially with increased scrutiny on wage accuracy and underpayment prevention.
“In January, new laws aimed at curbing wage theft will take effect, introducing criminal penalties for companies that intentionally underpay wages and benefits under the Fair Work Act 2009. These changes reflect a growing commitment to fair compensation and protecting workers’ rights, signalling a shift towards more stringent oversight of payroll practices,” Karaka said.
“In response to these regulations, companies will need to implement more rigorous measures to ensure payroll calculations are accurate and compliant. This may involve investing in robust payroll systems capable of handling complex calculations and providing real-time reporting using a single source of truth. By prioritising transparency and accountability, businesses can mitigate non-compliance risks, protect their reputations, and foster a culture of fairness within their workforce.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
