Payroll in 2026 will be defined by confidence, not convenience, with boards, regulators and employees demanding hard evidence that payroll is correct rather than simply running smoothly, according to Australian Payroll Association CEO Ross Heron.
Speaking to HRD, Heron said a fundamental mindset shift is underway as organisations recognise payroll as a core governance and risk issue, not just an operational process.
“Many employers are realising that payroll can run smoothly while still being wrong, and reassurance is no longer enough for regulators, boards or employees,” he said.
“The real shift is from assumed compliance to demonstrable assurance. Payroll is increasingly recognised as more than an operational function – it is a governance, risk and reputation issue.”
Heron said the defining payroll trend in 2026 will be a demand for clear, defensible evidence of accuracy.
“The defining trend will be evidence of payroll accuracy, evidence that protects trust, value and delivers confidence,” he said. “For organisations that turn a blind eye to this shift, uncertainty will carry a real cost.”
Payday Super: not just a timing change
The biggest shake up to payroll in the coming year is the introduction of Payday Super.
From 1 July 2026, employers will need to pay super in line with each pay cycle, rather than quarterly, as many do.
Heron warned that many employers risk misjudging the introduction of Payday Super by seeing it as a purely technical or timing-related project.
Instead, he urged organisations to start by documenting how superannuation is actually managed in practice, rather than working off assumptions.
“Delayed contributions, bounce-back payments and manual workarounds have always existed. Payday Super simply removes the buffer that once hid them,” Heron said.
He noted that payroll system settings that were previously “good enough” will be exposed under real-time payment requirements.
Above all, Payday Super should be treated as an organisation-wide change program.
“Most importantly, Payday Super needs to be treated as an organisational change, not a technical exercise. It affects payroll, HR, finance and cash flow,” Heron said.
“Employers that approach it collaboratively and design assurance into payroll will transition far more smoothly.”
From “keeping up” with regulation to proving compliance
Compliance is everchanging and keeping up can be a daunting task. However, Heron challenged HR teams to rethink how they respond to Australia’s rapidly evolving regulatory landscape.
“Keeping up with regulation is no longer about memorising rules or chasing updates. It’s about building structure around change,” he said.
As award interpretation, superannuation and wage compliance become more complex, he warned that organisations that rely heavily on the knowledge of a few key individuals are increasingly exposed.
