Why Payroll Is More Complex Than It Looks for Melbourne Businesses
Melbourne's Award wage rates, WorkSafe Victoria requirements, and high cost of non-compliance make payroll one of the most risk-laden areas for small businesses. The reality involves: correct Award interpretation for each employee's classification, STP Phase 2 reporting every pay run, super calculated correctly and lodged before quarterly deadlines, leave tracked accurately, and PAYG withholding at the right rate.
Get any of these wrong and you're facing Fair Work back-pay claims, ATO penalties for late super, STP non-compliance notices, or WorkSafe remuneration errors at year end. True Tally handles payroll as part of monthly bookkeeping — so it's never the thing that keeps you up at night.
What's Included in Payroll Processing
- Pay run processing — weekly, fortnightly, or monthly, depending on your schedule
- Award rate compliance — correct classification and minimum rates for each employee
- STP Phase 2 reporting — reported to the ATO automatically every pay run via Xero
- Superannuation calculation — correct rate applied to ordinary time earnings
- Super lodgement — submitted via SuperStream before quarterly deadlines
- Leave tracking — annual leave, personal/carer's leave, and long service leave balances
- PAYG withholding — correct tax withheld based on tax file declarations
- Payslips — compliant payslips sent to employees each pay run
- Termination processing — final pay, unused leave payout, and STP finalisation
- EOFY STP finalisation — income statements finalised so employees can lodge tax returns
Superannuation Deadlines — Don't Miss Them
Late superannuation is one of the most common and costly payroll mistakes for Melbourne small businesses. The Superannuation Guarantee Charge (SGC) adds interest and administration fees on top of the unpaid super — and unlike regular super, SGC is not tax deductible.
| Quarter | Pay Period | Super Due Date |
|---|---|---|
| Q1 | 1 Jul – 30 Sep | 28 October |
| Q2 | 1 Oct – 31 Dec | 28 January |
| Q3 | 1 Jan – 31 Mar | 28 April |
| Q4 | 1 Apr – 30 Jun | 28 July |
From 1 July 2026, super must be paid on each payday under the Payday Super changes.
Frequently Asked Questions — Payroll Melbourne
What is Single Touch Payroll (STP)?
STP is an ATO system requiring employers to report wages, PAYG withholding, and super to the ATO every pay run. STP Phase 2 has been mandatory since January 2022. Xero Payroll handles Phase 2 compliance automatically.
When does superannuation need to be paid?
Currently quarterly: 28 October, 28 January, 28 April, 28 July. From 1 July 2026, payday super requires payment on each payday. Late payments attract the SGC — not tax deductible.
What employee records must a Melbourne business keep?
Payroll records for 7 years: employee name and TFN, pay rate, hours worked, leave balances, super contributions, and termination details. Must be accessible to the Fair Work Ombudsman if requested.
How much does payroll processing cost?
For businesses with 1–10 employees, payroll is typically included in a monthly bookkeeping package. Standalone payroll starts around $150–$300/month. True Tally quotes based on your employee count and pay frequency.
Take Payroll Off Your Plate
Book a free 20-minute call. We'll assess your current payroll setup and take it from there.
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