Upcoming Changes Affecting Australian Businesses in 2025 & Beyond

As Australian businesses navigate a rapidly evolving regulatory landscape, staying informed and compliant is more critical than ever. A series of legislative changes are set to impact businesses in 2025 and beyond, covering tax, employment law, and superannuation. Partnering with a knowledgeable staffing agency like Blaze Staffing ensures that your business remains compliant while focusing on growth and efficiency. We provide full payrolling services and stay abreast of regulatory updates, protecting our clients from compliance risks.

Continuous auditing for compliance when hiring staff is essential. Ensuring that workers are paid correctly, have the right to work in Australia, and are employed under fair conditions is not just a legal requirement but also a crucial aspect of maintaining a reputable and ethical business. Employers must conduct regular compliance checks to avoid penalties and reputational damage. Blaze Staffing provides rigorous screening, verification, and auditing processes to ensure every hire meets all necessary legal and ethical standards.

1. ATO Changes

Transition from Quarterly to Monthly PAYG Reporting (Effective 1 April 2025)

From April 2025, the Australian Taxation Office (ATO) will require small businesses with a history of non-compliance to transition from quarterly to monthly for PAYG & Goods and Services Tax (GST) reporting, this change predominately effects medium to large business enterprises. This change aims to improve tax compliance by ensuring more frequent payments and reducing the risk of errors or late submissions.

How This Affects Your Business:

• Increased administrative workload with monthly rather than quarterly reporting.
• Greater need for accurate bookkeeping and cash flow management.
• Potential penalties for failing to comply with new reporting schedules.
• Read More: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/paying-and-reporting-withheld-amounts

How Blaze Staffing Can Help:

Our payrolling services ensure that your business remains compliant with tax reporting obligations. By working with us, businesses can stay ahead of changes, avoiding penalties and administrative burdens.

New ATO Tax Change: Interest on Overdue Tax Debts No Longer Tax-Deductible (Effective 1 July 2025)

Starting from 1 July 2025, the ATO will implement a significant change affecting small businesses: interest charges on overdue tax debts will no longer be tax-deductible. This change comes as part of new legislation designed to encourage timely tax payments by increasing the financial implications of deferring tax obligations.

Understanding the Change:

Historically, small businesses could claim deductions for interest accrued on unpaid tax debts, including the General Interest Charge (GIC) and Shortfall Interest Charge (SIC). These charges were imposed to encourage prompt payment and accurate tax reporting. However, with the new legislation, deductions for these interest charges will be disallowed for amounts incurred on or after 1 July 2025.

Implications for Small Businesses:

• Increased Financial Burden: The removal of tax deductibility means the after-tax cost of GIC and SIC will rise, making it more expensive for businesses to manage tax debts.
• Cash Flow Considerations: Businesses relying on the deductibility of these interest charges to offset taxable income will need to reassess their cash flow strategies to accommodate the higher net cost of any overdue tax liabilities.

Recommended Actions:

• Proactive Tax Management: Prioritise timely and accurate tax payments to avoid incurring non-deductible interest charges.
• Review Payment Plans: If your business is currently on an ATO payment plan extending beyond 1 July 2025, consider renegotiating terms or accelerating payments to minimise exposure to non-deductible interest.
• Seek Professional Advice: Consult with a tax professional to understand the full impact of this change on your business and explore alternative strategies for managing tax obligations effectively.

Changes to Instant Asset Write-Off Threshold (Effective 1 July 2025)

The government’s instant asset write-off scheme is changing. The current $20,000 threshold will remain in place until 30 June 2025 but will drop to just $1,000 from 1 July 2025. This means businesses need to plan their purchases strategically to maximise tax benefits.

How This Affects Your Business:

• A lower threshold will significantly reduce the immediate tax deductions available for equipment purchases.
• Businesses planning to buy assets over $1,000 should do so before 30 June 2025 to take full advantage of current rules.

How Blaze Staffing Can Help:

While we don’t provide financial advice, we ensure our clients are aware of key legislative changes. Our expertise in staffing and workforce management helps businesses allocate their resources efficiently.

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2. Employee Choice Pathway for Casual Conversion (Effective 26 February 2025)

New laws give casual employees greater rights to request conversion to permanent employment. Employers must respond within 21 days and follow updated legal requirements regarding eligibility and conditions.

How This Affects Your Business:

• Employers must assess and document requests for casual-to-permanent conversion.
• Non-compliance could lead to legal disputes or penalties.
• Workforce planning may need adjustments based on staff requests and business needs.

How Blaze Staffing Can Help:

We help businesses manage workforce transitions while ensuring compliance with evolving employment laws. Our expertise in casual and permanent staffing solutions makes it easy to navigate these changes seamlessly.

 

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3. Single Touch Payroll (STP) Phase 3 (Effective 1 July 2025)

Single Touch Payroll Phase 3 introduces expanded reporting requirements, including additional data such as employee tax file numbers (TFNs), gross salary, and allowances. This change is part of a broader effort to simplify tax reporting and ensure better data accuracy for both employees and the ATO.

How This Affects Your Business:

• Compliance Pressure: Companies must ensure they are meeting the new reporting requirements for each employee, adding an extra layer of detail to payroll submissions.
• Potential Penalties: Failure to comply with STP Phase 3 reporting requirements may lead to fines and penalties.

How Blaze Staffing Can Help:

Blaze Staffing’s payroll services are fully compliant with STP Phase 3, ensuring that all new reporting requirements are met seamlessly. We are committed to staying up-to-date with evolving payroll legislation, which means you don’t have to worry about keeping track of changing tax regulations.

 

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4. Criminalisation of Wage Theft (Effective 2025)

Deliberate underpayment of employees, also known as wage theft, is now a criminal offence. Employers found guilty of intentional wage theft could face hefty fines and potential imprisonment.

How This Affects Your Business:

• Increased scrutiny on payroll and employee payments.
• Risk of severe penalties for failing to meet wage obligations.
• A greater need for accurate and transparent payroll management.

How Blaze Staffing Can Help:

Our payrolling services guarantee that all staff payments are made correctly and in compliance with the law. Businesses partnering with Blaze Staffing eliminate the risk of payroll errors that could lead to legal action.

 

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5. Workplace Gender Equality Reporting (Effective 1 July 2025)

From 1 July 2025, new regulations will require Australian businesses with 100 or more employees to report on gender equality metrics, including pay gaps, workforce composition, and leadership positions. These reports must be submitted annually and will be made available publicly.

How This Affects Your Business:

• Increased Reporting Requirements: Businesses will need to track and report on gender equality data in the workplace.
• Reputational Risk: Companies that fail to meet the new reporting standards may face reputational damage and possible penalties.
• Read More: https://www.wgea.gov.au/home/reporting-guide/private-sector

How Blaze Staffing Can Help:

Blaze Staffing supports businesses in meeting their compliance obligations, including workplace gender equality reporting. Through our comprehensive recruitment and payroll services, we ensure that businesses align with gender equality standards, fostering an inclusive and diverse workplace.

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5. Introduction of Payday Super (Planned to be effective from 1 July 2026)

From July 2026, employers will be required to pay Superannuation Guarantee (SG) contributions at the same time as wages, instead of quarterly. This reform aims to improve retirement savings by ensuring super is paid more frequently and reducing unpaid contributions.

How This Affects Your Business:

• Payroll systems must be updated to process super payments with each pay cycle.
• Businesses may need to adjust their cash flow planning to accommodate more frequent super payments.
• Non-compliance will attract penalties from the ATO.
• Read More: https://www.ato.gov.au/businesses-and-organisations/business-bulletins-newsroom/payday-super-consultation-continues

How Blaze Staffing Can Help:

We handle payroll processing, including superannuation payments, ensuring compliance with upcoming regulations. Businesses that partner with us can be confident their staff receive their entitlements on time and in line with legislative requirements.

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6. Modern Slavery Compliance and Supply Chain Reporting (Ongoing)

Businesses with an annual revenue of $100 million or more must continue to report on modern slavery risks within their supply chains. This includes providing detailed statements on efforts to identify, assess, and address any risks related to forced labour or unethical practices. Smaller businesses working with large corporations are increasingly being asked to demonstrate their compliance with modern slavery legislation.

How This Affects Your Business:

• Supply Chain Transparency: Businesses must assess their supply chains and take steps to mitigate the risk of modern slavery practices.
• Increased Scrutiny: Companies may be required to provide evidence of their compliance with modern slavery regulations.

How Blaze Staffing Can Help:

Blaze Staffing is a registered supplier with Sedex, an ethical trade platform that supports businesses in ensuring their supply chains are compliant with modern slavery and other ethical practices. Our commitment to DEI (Diversity, Equity, and Inclusion) and modern slavery compliance means that working with us gives businesses peace of mind knowing that their staffing and payroll processes are in line with both local and international standards.

Stay Compliant & Focus on Growth with Blaze Staffing

With so many changes on the horizon, staying compliant can be a complex and time-consuming task. Blaze Staffing takes the stress out of compliance by managing payroll, keeping up with legislative updates, and ensuring your business is protected from regulatory risks. Partner with us today to safeguard your business and focus on what matters most—growth and success.

Blaze Staffing is a registered supplier with Sedex (Supplier Ethical Data Exchange), demonstrating our commitment to ethical sourcing, labour rights, and corporate social responsibility. Our compliance with Modern Slavery Act regulations ensures that businesses working with us uphold fair employment practices, while our focus on Diversity, Equity, and Inclusion (DEI) ensures equitable opportunities for all workers. By partnering with Blaze Staffing, your business benefits from a supply chain that aligns with global ethical and legal standards.

Get in touch with Blaze Staffing to discuss how we can support your business in navigating these changes.