MEDIA RELEASE 07 August 2014
Expert calls for payroll reform
The Australian payroll system is one of the most complex in the world, costly to
administer and should be reformed, according to human resources and payroll
expert Dean Morelli.
Mr Morelli, who is the Managing Director of Aussiepay, said that last year
payroll administration cost Australian businesses $2.16 billion, and with so
many complicated and different regulatory requirements, corporate compliance
issues and laws for each state, companies are needlessly spending hours on
payroll rather than devoting time to improving employee engagement and
"Government across Australia, State and Federal, should recognise that this is a
huge overhead for business and an unnecessary bureaucratic cost. It is
complicated and time-consuming to administer and with eight states and
territories and a Federal Government, keeping on top of compliance can be
"For example, annual leave accruals are governed at Federal level under the Fair
Work Act, but long service leave is covered at State level. Add in the
complexities of parental leave, part-time work, sick leave, redundancy, and
various tax and superannuation requirements, and payroll can turn into a very
difficult, time consuming and expensive task to administer.
"Simplifying payroll will have significant impacts on the bottom line of many
businesses across Australia," said Dean Morelli.
Dean Morelli added that although outsourcing payroll eases the pain for many
businesses, real changes need to come from the top at both State and Federal
"Outsourcing can simplify things for many businesses, but in order to really
make a difference to increased productivity by many companies in this country,
the payroll legislation must be streamlined. Cutting administration payroll
costs and allowing management to devote their time to achieve greater Employee
Engagement, will in turn lead to a more productive workforce," he said.
Dean Morelli said that in order for Australian companies to be truly competitive
on the international stage, reform should not be limited to payroll and called
on the Government to examine the red tape associated with industrial relations
legislation and Australia's overly complex tax systems for business.
"Where are the benefits to be gained by so much regulation? Australian
businesses are weighed down by the burden of unnecessary regulatory obligations
that other countries don't have to deal with. If we are to realistically compete
internationally, whatever the industry - tourism, education, services, or the
motor industry - we need to get rid of expensive and complicated systems.
"I urge politicians to examine the current overly complex payroll, tax and
industrial relations regulations and call on the Government to fix costly red
tape that is wasting business billions of dollars each year," said Dean Morelli.
About Dean Morelli
Dean Morelli is the founder and Managing Director of Aussiepay, Australia's
leading provider of outsourced payroll solutions.
Formed in early 1992, Aussiepay was built on Dean's belief that effective
business process outsourcing solutions had to move beyond delivering technology
alone - they also had to focus on service excellence.
Dean's entrepreneurial energy continues to be a driving force behind Aussiepay's
innovative approach to system and product development. He has led Aussiepay to
become a multi-award winning company that thrives on client responsiveness, a
quality focus and a commitment to reliability, accuracy and continual
Dean's current focus is to build on foundation developments and provide the
tools and systems that promote and encourage employee engagement within clients.
Employee Engagement is recognised as the great untapped resource in the business
landscape. Dean believes that the challenge is to remove the administrative
burden that encumbers line managers in executing world class human capital
Released for Aussiepay by Dennis Rutzou Public Relations
For further information call Dennis Rutzou or Anna Caswell on + 61 2 9413 8424.