Tag: compliance

payroll

Super boost for parents on government-funded Parental Leave Pay

Posted on | by Allan Hall

Employers required to pay super on Parental Leave Pay from 1 July 2025

Key points:

  • From 1 July 2025, employers must pay superannuation guarantee (SG) on government-funded Parental Leave Pay (PLP)
  • The SG rate will be 11.5% from 1 July 2025, in line with ordinary time earnings
  • Employers will need to include this in their regular super reporting and payment processes.

From 1 July 2025, employers will be required to make superannuation guarantee contributions on government-funded Parental Leave Pay (PLP) for eligible employees.

This change aligns PLP with other leave entitlements such as annual and personal leave, for which super contributions are already required. The SG rate applicable from 1 July 2025 will be 11.5%.

How it works

The Department of Social Services will continue to fund Parental Leave Pay via Services Australia and will also provide funding for the corresponding super contributions. Employers will receive additional funds specifically to meet their new SG obligations.

Employers will be responsible for:

  • Paying SG contributions into the employee’s nominated super fund
  • Making payments in accordance with the standard quarterly super cycle
  • Reporting these contributions through Single Touch Payroll (STP) Phase 2.

These contributions are based on the PLP amount paid to the employee and must be treated similarly to other superannuation obligations tied to salary or wages.

What employers need to do

To prepare, employers should:

  • Update their payroll systems and processes to manage super payments on PLP
  • Ensure super contributions and STP reporting are correctly configured for affected employees
  • Be ready to administer these contributions from 1 July 2025.

The ATO and Services Australia will provide further information and support ahead of the change.

Need help preparing your payroll systems?

Allan Hall can assist you in reviewing your payroll processes, updating superannuation settings and ensuring compliance with these upcoming changes. Contact us today to stay ahead of the new requirements.

CONTACT ALLAN HALL BOOKKEEPING

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Important Update: Minimum Wage and Modern Award Rates Increasing from 1 July 2025

Posted on | by Allan Hall

The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and all Modern Award minimum wage rates, effective from 1 July 2025.

What This Means for You

  • Now is the time to assess award coverage and classification levels for your workforce to ensure compliance
  • For employees who are not covered by an award, you must ensure their pay meets or exceeds the new National Minimum Wage
  • In Australia, it is unlawful to pay any employee less than the national minimum, regardless of whether they’re covered by an award
  • New rates must be applied from the first full pay period on or after 1 July 2025

A Quick Refresher on Modern Awards

Each year, we use this opportunity to remind our clients about the existence and relevance of modern awards, and how they can impact your business.

There are currently 121 modern awards in Australia. These set out minimum terms and conditions of employment and typically apply based on:

  • Industry (e.g. Retail, Hospitality, Building & Construction), or
  • Occupation (e.g. admin/clerical under the Clerks Award, or personal services under the Hair and Beauty Award)

While these are just a few examples, the system is designed to cover the vast majority of employers within the national workplace relations system.

Understanding which award applies is just the first step. Once confirmed, employers must ensure each employee is correctly classified to determine the appropriate rate of pay. Classification levels (and their corresponding rates) are based on factors such as duties performed, level of responsibility, required skills or licences (e.g. forklift), experience, and in some cases, age.

Now is an ideal time to reassess whether any of your employees may be covered by a modern award and to ensure they are accurately classified. Misclassification can result in underpayments and compliance issues, so it’s important to regularly review award coverage and classification descriptions, especially in light of updated minimum wage rates.

What You Need To Do

  • Review the modern award classifications applicable to each member of your workforce
  • Ensure your non-award covered employees meet or exceed the new National Minimum Wage
  • Update minimum rates in your payroll systems by 1 July 2025
  • Pay particular attention to casual, part-time, and minimum-wage employees, especially in award-reliant sectors like retail, hospitality and care services

Note: The Fair Work Commission typically publishes updated wage tables toward late June. In the meantime, you can estimate new rates by applying a 3.5% increase to current rates. We are happy to assist with these preliminary calculations if needed.

What If I Already Pay Above Award Wages

If your employees already receive above-award pay, you may not need to increase their rates, however, this depends on how they are engaged and what is clearly outlined in their written employment agreement.

  • Over-award payments can often be used to absorb the increase, provided the employee’s base pay still meets or exceeds the new minimum.
  • For those on annualised wage arrangements, ensure their total yearly pay still covers all entitlements (like overtime, penalties, and allowances) under the new rates.
  • If you use individual flexibility arrangements, enterprise agreements, or salaried contracts, it’s essential to check that employees remain better off overall compared to the updated award rates.

How We Can Help

Navigating award coverage, wage updates and compliance obligations can be complex. If you are unsure where to start or want peace of mind that your business is meeting its obligations, please reach out to our team at Allan Hall HR.

We can assist you with:

  • Interpreting and/or identifying your award obligations
  • Calculating new minimum rates, including casual loadings, overtime, and allowances
  • Reviewing over-award payments, salaried agreements, and annualised arrangements
  • Auditing your payroll to ensure full compliance with updated minimums
  • Providing tailored guidance specific to your industry and workforce

Our team at Allan Hall HR will continue to monitor the release of updated wage tables and can provide further guidance as needed. In the meantime, please contact us on 1300 916 764 or contact us here if you would like assistance in reviewing your payroll and preparing for the changes.

HR Support Centre Demo

We invite all our clients to explore our complimentary HR Support Centre, designed to help you navigate your employee obligations and stay updated on legislative changes. This valuable resource offers ready-to-use HR templates, best practice guidance, checklists, and access to a vast library of articles on compliance and employee management. Book in a free demo today.

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Trust Distribution reminder 30 June 2025

Posted on | by Allan Hall

As we approach the end of the financial year all trustees need to consider their trust distributions for 30th June 2025.

Trustee minutes document the trustee’s decision (determination) in relation to the distribution of income to the beneficiaries for the financial year, and many Trust Deeds require the decision to be made and documented prior to the end of the financial year.

This is a reminder for you to make sure you make your determinations before the end of the 30th June, and we provide a link to a pro forma document (below) to help you record the decisions. This document should be dated and signed, and retained by you for your records.

If you have any questions, please contact us on 02 9981 2300.

DOWNLOAD RESOLUTION RECORD FORM (Word doc)

CONTACT ALLAN HALL BUSINESS ADVISORS BROOKVALE

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Compliance cogs

ATO compliance spotlight on legal profession

Posted on | by Allan Hall

Lawyers in Tax Office’s compliance spotlight

The Australian Taxation Office (ATO) has expressed concerns about issues within the legal profession following recent compliance activities.

While the majority of legal practitioners meet their tax obligations, the ATO has identified a significant number who are not fulfilling their responsibilities, particularly in lodging returns, accurately reporting income and paying tax on time.

A common issue observed is the incorrect reporting of distributions from partnerships and associated service trusts. Lawyers who divert legal practice income to associated entities may be classified as high-risk and attract compliance attention.

To assist legal professionals in assessing and managing their tax risk, the ATO offers an online resource that outlines inappropriate alienation of income and the compliance actions that may follow.

To address non-compliance, the ATO has taken actions such as:

  • Conducting reviews and audits
  • Issuing default assessments
  • Applying garnishee notices
  • Entering into payment arrangements
  • Initiating prosecutions

Legal professionals are urged to:

  • Ensure all tax lodgements are up to date (including income tax, GST, FBT, superannuation and other obligations)
  • Correctly report trust and partnership distributions
  • Accurately declare all income
  • Lodge on time, every time
  • Voluntarily disclose any missed tax obligations
  • Ensure compliance with PCG 2021/4

Non-compliance can have serious professional consequences. In one case, the Queensland Civil Administration Tribunal upheld a decision by the Bar Association of Queensland that a barrister was unfit to practise due to multiple failures, including unpaid tax liabilities dating back to 2019. A review of more than 250 lawyers found that 85% had failed to lodge tax returns, with some having multiple years overdue. As a result of these investigations, the ATO has raised $28 million in liabilities by securing outstanding lodgements and identifying omitted income.

To further support its compliance efforts, the ATO is set to receive a significant funding boost. As part of the 2024–25 Federal Budget, the government has allocated nearly $1 billion in additional resources over four years. This investment will enhance the ATO’s ability to pursue tax avoidance and improve the integrity of the tax system, particularly among high-wealth individuals, closely held businesses and professional service firms. Read 2025-26 Budget summary here »

CONTACT ALLAN HALL BUSINESS ADVISORS

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eofy 30 june

Employer Super Contributions for YE 30 June 2025

Posted on | by Allan Hall

ACT NOW: Employer Super Contributions for Year Ended 30 June 2025

Employers please note, if you intend to claim a tax deduction in 2024/25 for your employees’ June 2025 quarter super contributions, please ensure you make the payment by no later than 20 June 2025 to allow adequate time for the contributions to be processed through the superannuation clearing house and allocated to your employee’s super accounts.  

This is also a timely reminder for clients making employer contributions to their own or their employees’ SMSFs using the ATO’s SBSCH clearing house service. Please check that the bank details of the SMSF are up to date and correctly recorded by the ATO, otherwise payments may be rejected, causing further delays to the receipt of funds into the SMSF.

Otherwise please ensure the June quarter contributions are made by mid-July to ensure you meet the due date deadline of 28 July 2025. 

Super Guarantee (SG) base rate rise 1 July 2025

The SG base rate is set from 1 July which will increase from 11.5% to 12%.

The maximum super contributions base is decreasing from the current year’s $65,070 per quarter to $62,500 per quarter for 2025/26. This means that employers are not obligated to pay Super Guarantee contributions for an employee with quarterly earnings that exceed this limit, unless contractually required to do so.

Employers should review their employees’ contractual and award arrangements to ensure their strategy to the payment increase is in accordance with their legal obligations.

Please contact Allan Hall HR on 1300 916 764 or [email protected] for assistance reviewing or interpreting your current employment arrangements.

Please note that software providers will be making the adjustment to their systems but, depending on your setup, if you have manually entered a rate you may need to adjust this.

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business desk

Flexible Work Disputes on the Rise: Are You Compliant with the New Rules?

Posted on | by Allan Hall

As hybrid and remote working models continue to reshape the Australian workplace, there has been a noticeable increase in disputes related to flexible work arrangements, with a growing number of cases being escalated to the Fair Work Commission (FWC).

To recap, legislative changes to the Fair Work Act 2009 took effect on 6 June 2023, significantly strengthening employees’ rights to request flexible work and placing more stringent obligations on employers.

Employers are required to:

  • Respond to requests in writing within 21 days
  • Genuinely consult with the employee about their request
  • Provide clear reasons for any refusal based on reasonable business grounds

Most significantly, the FWC now has the authority to resolve disputes where flexible work requests are refused or ignored, including through binding decisions that are legally enforceable. This marks a significant shift in how flexible work matters are managed in Australia.

Since the changes took effect, there has been a noticeable uptake in employees pursuing formal dispute resolution through the Commission. This highlights the need for employers to take these requests seriously and follow correct procedures.

To help you stay compliant and avoid unnecessary disputes, here are some practical actions your business should consider:

Review and Update Your Flexible Work Policy

Ensure your workplace has a clear, accessible policy that outlines:

  • Who is eligible to request flexible work
  • How requests should be submitted (in writing, outlining the proposed change and reason)
  • The steps the business will take to assess and respond

This supports compliance, clarifies expectations and promotes consistency.

Educate Managers and Supervisors

Frontline leaders must understand their legal obligations, including:

  • The 21-day timeframe for responses
  • How to conduct genuine consultation
  • What qualifies as “reasonable business grounds” for refusal

Providing basic training or guidance materials can significantly reduce the risk of disputes.

Create a Consistent Internal Review Process

Implement a structured approach to managing requests, including:

  • Proper documentation of all requests and responses
  • Clear rationale for decisions
  • HR involvement in sensitive or complex cases

This shows transparency and supports your defence if challenged.

Use Alternative Proposals Where Possible

If a request cannot be fully granted, consider:

  • A trial period to assess suitability
  • Adjusted hours or hybrid arrangements
  • Alternative flexibility options that still meet the employee’s needs

Demonstrating a willingness to explore options reflects good faith and strengthens your position.

Seek Advice Early

If you’re unsure how to respond to a request or foresee complications, seek HR or legal advice early. This can help you navigate the process confidently and avoid escalation.

As more employees become aware of their rights and as more disputes are referred to the FWC, it is essential that businesses are equipped with the right systems, policies, and training.

Being proactive, fair and transparent in how you handle flexible work requests will not only help you stay compliant, but also build a workplace culture that is inclusive, responsive, and future-focused.

At Allan Hall HR, we assist businesses in navigating flexible work obligations with confidence. Whether you need help reviewing or developing your policies, training your managers, or responding to specific requests, our experienced team is here to support you. Get in touch with us today at [email protected] or by calling us directly on 1300 916 764 to ensure your business remains compliant and prepared for the evolving workplace.

HR Support Centre Demo

We invite all our clients to explore our complimentary HR Support Centre, designed to help you navigate your employee obligations and stay updated on legislative changes. This valuable resource offers ready-to-use HR templates, best practice guidance, checklists, and access to a vast library of articles on compliance and employee management. Book in a free demo today.

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tax planning & structuring

Budget funding targets Director ID and Tax Reforms

Posted on | by Allan Hall

Budget Funding to Advance Director ID Linkage and Tax System Integrity

Federal Budget funding to link director IDs with company records, strengthening tax oversight and recover unpaid superannuation contributions.

Key Points:

  • The Federal Budget allocates funding to link director IDs with company records, boosting corporate transparency
  • New measures will modernise tax oversight and increase sanctions for misconduct
  • Additional ATO funding will target unpaid super contributions, with $31 million expected to be recovered.

The Federal Government has committed Budget funding to progress Australia’s business register reforms, including the long-anticipated integration of director identification numbers (director IDs) with the corporate register.

This advancement is expected to deliver stronger corporate governance and provide more effective use of the director ID system, which has been in place but not yet fully implemented through system linkage.

In a suite of additional compliance initiatives, the government announced plans to strengthen available sanctions through the Tax Practitioners Board, modernise the tax practitioner registration framework, and provide targeted resources to monitor and address high-risk tax practitioners.

These actions continue the government’s response to high-profile misconduct cases and reflect a broader focus on upholding standards in the tax profession.

The Australian Taxation Office will also receive further funding to improve tax system integrity.

While the measures are aimed at medium to large businesses, they include enforcement of superannuation contribution obligations. An estimated $31 million in unpaid super is expected to be returned to employees as a result—complementing the $900 million recovered in the prior financial year.

The initiatives signal an ongoing commitment to enhancing transparency and accountability across Australia’s corporate and taxation systems.

CONTACT ALLAN HALL BUSINESS ADVISORS

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Parliament House, Canberra with a flag on top

2025–26 Federal Budget Highlights

Posted on | by Allan Hall

The Federal Treasurer, Dr Jim Chalmers, handed down the 2025–26 Federal Budget on 25 March 2025.

Guided by five priorities, including helping with the cost-of-living, building more homes and investing in education, the Budget includes two new personal tax cuts for all Australian individual taxpayers, increased Medicare levy thresholds, a ban on foreign individuals buying existing homes and a proposed reduction to student debts.

Described by the Treasurer as a “plan for a new generation of prosperity in a new world of uncertainty”, the Budget did not include any new measures affecting the taxation or regulation of superannuation or new income tax measures affecting small businesses.

Being the government’s last Budget before the expected federal election, the start dates of a number of previously announced but unenacted tax measures have been deferred until amending legislation is enacted.

The tax and tax-related highlights are set out as follows. While this Budget provides an indication of some measures that may be pursued post-election, in reality, they all hang in the balance until a new government is formed and its priorities are laid down.

Small Business

  • There were no new measures for small business other than the Government’s commitment to deliver the previously announced measure to temporarily extend to 30 June 2025 the $20,000 instant asset write off threshold. This Bill is currently before the House of Representatives and, unless enacted the instant asset threshold for this 2025 financial year will revert to $1,000. There was no announcement of what lies beyond 30 June 2025 for this small business measure.

Individuals

  • The marginal tax rate for the personal income tax threshold bracket from $18,201 to $45,000 will be reduced from 16% to 15% from 1 July 2026, and further reduced to 14% from 1 July 2027.
  • The Medicare levy low‑income thresholds for singles, families, and seniors and pensioners will be increased from 1 July 2024.
  • Student loan debts will be cut by 20% and other reforms will be made to the student loan repayment system from 1 July 2025.
  • The start date of the 2024–25 Budget measure to strengthen the foreign resident CGT regime will be deferred from 1 July 2025 to the later of 1 October 2025 or the first 1 January, 1 April, 1 July or 1 October after assent.
  • Foreign ownership of housing will be restricted.

Tax administration

  • Rules on managed investment trusts will be amended to ensure legitimate investors can continue to access concessional withholding tax rates from 13 March 2025.
  • The start date of the 2023–24 Budget measure to extend the clean building managed investment trust withholding tax concession will be deferred from 1 July 2025 to 1 January, 1 April, 1 July or 1 October after assent.
  • The ATO will be given $999M funding over 4 years to extend and expand its tax compliance activities.

Indirect taxes

  • Indexation on draught beer excise and excise equivalent customs duty rates will be paused for a 2‑year period from August 2025.
  • The excise remission cap is proposed to be increased from $350,000 to $400,000 each financial year for all eligible alcohol manufacturers from 1 July 2026. The Wine Equalisation Tax producer rebate would similarly increase from $350,000 to $400,000 each financial year from 1 July 2026.
READ FULL FEDERAL BUDGET TAX SUMMARY

Full Budget papers are available at www.budget.gov.au and the Treasury ministers’ media releases are available at ministers.treasury.gov.au.

To discuss how these Budget measures impact you or your business, please contact your Allan Hall Advisor.

CONTACT ALLAN HALL BUSINESS ADVISORS

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house key

Changes to foreign purchases of established dwellings

Posted on | by Allan Hall

Banning foreign purchases of established dwellings

On 16 February 2025, the Government announced that it will impose a temporary ban on foreign purchases of established dwellings for at least 2 years and crack down on land banking.

From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot apply to buy an established dwelling in Australia, unless an exception applies. These limited exceptions will include investments that significantly increase housing supply or support the availability of housing supply, and for the Pacific Australia Labour Mobility (PALM) scheme.

Other existing exceptions remain in place, such as for purchases by:

  • permanent residents
  • New Zealand citizens
  • spouses of Australian citizens, permanent residents or New Zealand citizens (when purchased as joint tenants).

A review will be undertaken to determine if the ban should be extended beyond 31 March 2027.

The Tax Office will enforce the ban through enhanced screening of foreign investment proposals relating to residential properties.

It will carry out a full audit of current foreign investment approvals for vacant residential land development.

The Tax Office will also take a tougher stance on compliance of foreign investment approvals for vacant residential land development. This will help ensure that foreign investors who have bought or want to buy vacant residential land meet development conditions.

CONTACT ALLAN HALL INTERNATIONAL SERVICES

Related reading

Changes for Australian and foreign residents buying and selling property
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