The Problem with Payroll In Australia

Australia’s and New Zealand’s payroll systems are among the most complex in the world today, according to Strada’s 2025 index.

Regulations and rules will continue to become even more complex in 2026 and beyond.

2025 Global Payroll Complexity Index (GPCI), the industry’s original and most trusted benchmark for global payroll complexity. Now in its seventh edition and running for over a decade, the 2025 GPCI reveals a payroll landscape that, while still highly demanding, is beginning to stabilize.

This year’s results highlight how payroll regulation is evolving worldwide, with traditionally stable markets showing increased variation with average country scores rising by 5%. Europe continues to lead in complexity, with seven of the ten most challenging payroll markets and France remaining the world’s most complex payroll market. In North America, the United States entered the top 10 for the first time, climbing eight places with a 17% increase, while Canada held steady in fifth despite a further 9% rise.

Sharp increases in complexity elsewhere underline how quickly requirements can evolve. Australia surged eight places into the global top three following a 21% rise in its score, driven by broader deduction frameworks, greater stakeholder access to payroll data and more varied payment methods.

Top 3 most complex countries for payroll (2025 GPCI):

France
Slovakia
Australia

Payroll Compliance is the #1 Critical Issue in Need of Testing and Resolution Today.

The pain of not getting payroll right is very impactful on the business and its management.

Reputation damage
Costly costs and penalties are available for systemic underpayments
Possible criminal prosecution for knowingly underpaying staff.

Businesses need to conduct a detailed review of their payroll to rectify any underpayments identified.

The solution is an integrated Rostering, Timekeeping, Timesheet, Automated compliant Award Interpreter and Payroll system that is connected to the business HRM system

The Solutionis Inzenius

Inzenius is an all-in-one, Australian-designed flexible system that includes Rostering, Timekeeping, and automated Award-Interpreted Leave & Payroll from approved Timesheets, which can be API-linked to the business HRM system.