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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 increasing productivity.

"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 difficult.

"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 levels.

"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 improvement.

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 management practices.

Additional information:

Released for Aussiepay by Dennis Rutzou Public Relations

For further information call Dennis Rutzou or Anna Caswell on + 61 2 9413 8424.

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