_edited.png)
If you are running a business in Australia, January brought serious legal movement that you cannot afford to ignore.
And no, these are not just “nice-to-know” updates. These are pay-attention-or-pay-the-price updates.
Here is what is new and what you need to do right now to avoid fines, legal headaches, and losing money.
The ATO is Watching Online Businesses and Crypto Traders
The ATO has made it clear they’re coming for online businesses and crypto traders who aren’t reporting all their income.
The Online Selling Data-Matching Program is tracking sales from platforms like eBay Australia and Amazon. If your business makes over $12,000 a year and your tax return doesn’t match what they see, you may be in line for a visit from the tax man.
Crypto traders aren’t off the hook either. The Crypto Asset Data-Matching Program has been extended through to 2026. The ATO is pulling transaction data from crypto exchanges and cross-checking it with tax returns to catch undeclared gains.
If you’re running an online business or trading crypto, check your records now. The ATO is already looking - fix any issues before they find them for you.
Wage Theft is Now a Criminal Offence
Underpaying staff isn’t just a financial risk anymore.
As of 1 January 2025, deliberate wage underpayment is now a criminal offence under the Fair Work Act. If a business intentionally underpays wages, super, or entitlements, they’re now facing up to $8.5 million in fines for corporations and up to 10 years in prison for individuals.
Accidental underpayments may not get you criminally liable, but they still come with serious financial penalties.
If you have staff, it’s time to double-check your payroll, make sure you’re paying the correct rates, and fix any underpayments before it becomes a problem.
WA Employers Have Stricter Flexible Work Laws
Western Australia has introduced new laws giving employees stronger rights when requesting flexible working arrangements. From 31 January 2025, WA employers must provide a valid business reason for rejecting a request. If an employee disputes the decision, the WA Industrial Magistrates Court now has broader powers to handle these cases.
Employers covered by the national system still need to comply with the existing Fair Work Act rules for flexible work requests.
If you’re under the WA state system, you need to update your workplace policies. If an employee requests flexible work and you plan to reject it, you need to have a clear, justifiable reason - and be ready to defend it if they challenge the decision.
WA Casual Employees Now Get a 25% Loading
From 31 January 2025, casual employees in WA’s employment system are now entitled to a 25% loading, up from 20%.
If your business is under WA’s state system, your payroll needs to reflect the new rate. This change does not affect businesses under the national industrial relations system, where the casual loading rate was already set at 25%.
Offshore Contractors May Now Be Considered Employees
A September 2024 Fair Work Commission ruling has set a major precedent for WA businesses hiring offshore contractors. In this case, a Filipino contractor working for a WA-based company was ruled to be an employee, not an independent contractor.
This decision means that offshore workers performing work for an Australian company - especially if they work full-time, exclusively for the business, and under direct instruction - could be legally considered employees under Australian law. That means they could be entitled to unfair dismissal protections, superannuation, and other employment entitlements.
If you hire offshore contractors, review your contracts now. If you’re treating them like employees, they might be legally entitled to the same protections and benefits that employees are entitled to.
Final Thoughts
The ATO, Fair Work Commission, and WA Industrial Magistrates Court aren’t waiting for businesses to catch up. These laws are already in force, and if you’re not compliant, it’s only a matter of time before it becomes a problem.
If you sell online, employ staff, or work with offshore contractors, you need to be across these changes now.
Need help making sure your business is compliant? Book a strategy call today.
Sources:
Comments