Running a small business isn’t just about keeping things running smoothly – it also means staying on top of necessary compliance requirements, particularly regarding Australian tax and employment laws.
To help business owners stay on track and avoid potential pitfalls, the Australian Taxation Office has flagged four critical areas requiring extra attention.
Keep Up with Superannuation Payments
Superannuation guarantee (SG) contributions must be paid on time and in full for all eligible employees. In 2025, missing deadlines or underpaying can lead to hefty penalties. To stay compliant:
- Pay super contributions at least quarterly (or more frequently if preferred)
- Use SuperStream to process payments correctly
- Keep accurate records of contributions
Ensure Single Touch Payroll (STP) Compliance
STP reporting is mandatory for all businesses, ensuring employee wages, tax, and super information are reported directly to the ATO. Make sure your payroll software is up to date and that you:
- Report wages, PAYG withholding, and super correctly in real time
- Adjust for any errors promptly through your software
- Keep employee details accurate to avoid mismatches
Understand PAYG Withholding Requirements
As an employer, you must withhold the correct amount of PAYG tax from employee wages and report it to the ATO. Failure to do so may result in penalties or issues with tax return processing for employees.
Stay Updated On Workplace Laws
Employment laws, including minimum wage updates and workplace entitlements, can change. Regularly check Fair Work Australia’s updates to ensure compliance.
By staying proactive with these employer obligations, small businesses can avoid unnecessary fines and maintain a compliant and efficient payroll system in 2025.
