If the words “payroll compliance” make you want to grab a nap and hope it all magically sorts itself out, we feel you. But unless you’ve got an enchanted payroll fairy (if so, please introduce us), it’s probably worth tuning in.
Big changes were recently announced at the start of this year, and if you’re running a business and paying employees, it’s best to know what’s what before the Fair Work police come knocking.
So, in the name of keeping things practical but not painful, here’s a no-nonsense, no-headache rundown of the recent changes in payroll land.
Super Changes: Goodbye, Quarterly Payments!
Payday Super is coming (whether you like it or not)
From 1 July 2025, government-funded parental leave will come with super contributions (12% straight into super accounts).
Also, from 1 July 2026, superannuation payments will be paid on payday, not quarterly. No more “We’ll do it later”—it will happen every pay run.
How to prep for this:
💰 Stop using super as a temporary piggy bank (ATO will soon see
📅 Adjust cash flow planning—quarterly float money is disappearing.
📌 Takeaway: Payday Super is coming—start planning now, or future-you will be very cross with past-you.
The Right to Disconnect: BYO Boundaries
Work emails at 10 pm? Calls on a Sunday arvo? Yeah, that’s about to be illegal (unless it’s actually urgent, like your business is on fire).
Employees now have the right to ignore work stuff outside hours without worrying about consequences.
Bosses, here’s how to get on top of this:
💡 Set clear expectations about work hours.
📄 Update policies to spell out when people actually need to respond.
👍🏻 Train managers to respect boundaries (e.g., no “just a quick one” emails at 11 pm).
📌 Bottom line: If you’re expecting your team to be reading emails in bed at night, you’re gonna need to rethink things.
Wage Theft: It’s a Crime Now (Literally)
Underpaying staff isn’t just a bad look—from 1 January 2025, it’s a criminal offence. Yep, dodgy payroll moves could now land you in actual legal hot water.
What happens if you underpay people on purpose?
💰 Massive fines.
⚖️ Legal dramas.
📉 Reputation faceplants.
How to avoid being “that boss”?
✔️ Double-check wages and classifications (no more “Oops, I thought you were on $12 an hour!”).
✔️ Use good payroll software—the robots won’t forget.
✔️ Run regular payroll audits to catch slip-ups.
📌 Short version: Pay people properly, and nobody goes to jail.
Casual Workers: Are They Really Casual?
Recently, the definition of a casual employee got a glow-up. You can’t just chuck someone on a casual contract forever and hope for the best. Under the new rules, casuals must:
✅ Have no firm commitment to ongoing work.
✅ Get a casual loading or casual rate.
Oh, and casuals can now request permanent jobs!
- After 6 months, they can ask to go permanent (12 months for small businesses).
- Employers have 21 days to respond (and no, you can’t just ghost them).
- If you don’t want them to go full-time, you need actual reasons—not just “we prefer to keep things chill”.
📌 What you need to do: Check your casual staff. If they’re practically full-time but on a casual contract, now’s the time to have the talk.
So, What Now?
You’ve got two choices:
- Pretend this isn’t happening (not recommended – Fair Work will find you).
- Get ahead of the game – review your payroll, update policies, and make sure everything’s above board.
Need help navigating all this? We’re here to make payroll painless. Hit us up, and let’s make sure 2025 is smooth sailing (at least, payroll-wise).
– The team at PAL
Disclaimer: This article is here to give you general info, not advice for your unique situation. We can’t take responsibility for decisions based on it, so be sure to chat with your accountant or advisor first!
Have a question or comment?
If you have any questions or comments relating to this article (or any other accounting matter) please get in touch with us at [email protected] and we’ll be happy to assist you.