Four Weeks to 1 July: The HR Tasks SMEs Cannot Leave to the Last Minute
By Vas Papadopoulos, Principal Consultant, HR Excellence Partners
For many Australian SMEs, the end of financial year is focused on budgets, tax planning, and cash flow. While these areas are important, there is another critical business function that often gets left until the last minute: HR compliance.
With only a few weeks remaining before 1 July, now is the time to review your payroll, employment documentation, superannuation processes, and workplace policies. Businesses that take a proactive approach will enter the new financial year with confidence. Those that don’t may expose themselves to unnecessary compliance risks, employee disputes, and costly remediation work.
Here is a practical checklist of the HR tasks SMEs should prioritise before 1 July.
1. Confirm New Minimum Wage and Award Rates
One of the most important annual compliance activities is ensuring your payroll system reflects any changes arising from the Fair Work Commission’s Annual Wage Review.
The Fair Work Commission reviews minimum wages each year and determines any increases to the National Minimum Wage and modern award minimum rates. These changes generally take effect from the first full pay period on or after 1 July each year (Fair Work Commission, 2026).
Before processing your first July payroll, make sure you:
- Identify which employees are covered by a modern award.
- Confirm employees are classified correctly under the applicable award.
- Review any annualised salary arrangements.
- Update payroll systems with any new wage rates.
- Verify that allowances linked to award rates have also been updated.
Many underpayment issues occur not because employers intentionally pay incorrectly, but because classifications or award updates are overlooked.
2. Review Employment Contracts and Letters of Offer
The start of a new financial year is an ideal opportunity to review your employment documentation.
Employment contracts should accurately reflect current legislation, business practices, remuneration arrangements, and workplace expectations.
Consider whether:
- Existing contract templates remain compliant.
- New starter documentation reflects current employment conditions.
- Remuneration clauses remain accurate.
- Confidentiality, restraint, intellectual property, and flexible work provisions remain appropriate for your business.
Many SMEs continue using contract templates developed years ago, despite significant changes to workplace legislation over time.
A contract review now can help avoid disputes and confusion later.
3. Prepare for Superannuation Obligations
Superannuation remains an area of significant focus for regulators.
Employers should review their payroll processes to ensure superannuation contributions are being calculated correctly and paid on time. Businesses should also familiarise themselves with the upcoming Payday Super reforms, which are scheduled to commence from 1 July 2026 and will require superannuation contributions to be paid much closer to employees’ pay days (ATO, 2026).
Before 1 July, employers should:
- Confirm payroll systems are calculating super correctly.
- Review any salary sacrifice arrangements.
- Check superannuation clearing house processes.
- Ensure payroll providers are prepared for future Payday Super requirements.
Getting ahead of these changes now will make future compliance significantly easier.
4. Review Leave Settings and Leave Loading
Payroll reviews should extend beyond wage rates.
Employers should verify that annual leave, personal leave, long service leave, and any applicable leave loading arrangements are being administered correctly.
This is also a good opportunity to:
- Review leave balances.
- Address excessive annual leave accruals.
- Confirm leave loading calculations are accurate.
- Ensure payroll settings align with the relevant award or employment agreement.
Small payroll errors can become significant liabilities if they continue unchecked over a number of years.
5. Prepare for STP Finalisation
Single Touch Payroll (STP) finalisation is another key year end activity.
Most employers are required to finalise payroll information through STP after the end of the financial year so employees can access their Income Statements through myGov and complete their tax returns (ATO, 2026).
Before completing STP finalisation, review:
- Employee earnings.
- Bonuses and commissions.
- Allowances.
- Termination payments.
- Superannuation reporting.
- Payroll reconciliations.
A small amount of preparation before year end can save considerable time correcting errors later.
6. Ensure Workplace Policies Are Current
Policies are often one of the most neglected areas of HR compliance.
Many businesses have policies that have not been reviewed for several years, despite changes to legislation, technology, and workplace practices.
Before 1 July, review:
- Policy review dates.
- Legislative references.
- Workplace health and safety obligations.
- Hybrid and remote work arrangements.
- Bullying and harassment procedures.
- Leave related policies.
- Employee conduct expectations.
Policies should be dated, regularly reviewed, and aligned with current workplace legislation and business practices.
Current policies not only provide clarity to employees but can also provide valuable protection if workplace issues arise.
Walking Into 1 July Compliant Versus Exposed
Most compliance issues do not arise because employers deliberately ignore their obligations.
They arise because businesses are busy.
Payroll updates get delayed. Contracts are not reviewed. Policies become outdated. Superannuation processes are assumed to be correct.
The weeks leading into 1 July provide a valuable opportunity to step back and conduct a practical review of your people, payroll, and compliance framework.
Businesses that invest a few hours now can significantly reduce risk and enter the new financial year with confidence.
How HR Excellence Partners Supports SMEs
At HR Excellence Partners, we help Australian SMEs navigate employment obligations with practical, commercially focused HR support.
Our services include:
- HR compliance audits and health checks.
- Modern Award reviews and classification assessments.
- Employment contract development and reviews.
- Policy and procedure reviews.
- Payroll and wage compliance audits.
- Performance and employee relations support.
- Ongoing retained HR support for growing businesses.
Whether you need a one off review or ongoing HR guidance, we help businesses stay compliant, reduce risk, and build strong workplaces.
Vas Papadopoulos
Principal Consultant
HR Excellence Partners
vas@hrexp.com.au
hrexcellencepartners.com.au
References
- Fair Work Commission, Annual Wage Reviews, https://www.fwc.gov.au/hearings-decisions/major-cases/annual-wage-reviews
- Fair Work Ombudsman, Annual Wage Reviews, https://www.fairwork.gov.au/pay-and-wages/minimum-wages/annual-wage-reviews
- Fair Work Ombudsman, Modern Awards, https://www.fairwork.gov.au/employment-conditions/awards
- Fair Work Ombudsman, Employment Contracts, https://www.fairwork.gov.au/employment-conditions/contracts
- Fair Work Ombudsman, Annual Leave and Leave Loading, https://www.fairwork.gov.au/leave/annual-leave
- Australian Taxation Office, Super for Employers, https://www.ato.gov.au/businesses-and-organisations/super-for-employers
- Australian Taxation Office, Payday Super, https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/payday-super
- Australian Taxation Office, End of Year Finalisation Through STP, https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/start-reporting/end-of-year-finalisation-through-stp
- Fair Work Ombudsman, Workplace Policies, https://www.fairwork.gov.au/employment-conditions/best-practice-guides/workplace-policies
- Fair Work Act 2009 (Cth), https://www.legislation.gov.au/C2009A00028
