Global Employer Services Update - November 2026

Global Employer Services update - Transcript

ATO guidance on superannuation guarantee assessments

The Australian Taxation Office (ATO) has released draft PS LA 2026/D4, which outlines when the Commissioner may make an assessment of an employer's superannuation guarantee (SG) shortfall and superannuation guarantee charge (SGC) liability for a quarter ending day.

The draft guidance confirms that there is no time limit on when an initial assessment may be made. It also addresses information gathering, lost records, review rights and late payment penalties for unpaid SGC.

Employers with potential Payday Super shortfalls should consider lodging a voluntary disclosure before the ATO initiates an assessment.

All businesses should also retain complete payroll and superannuation contribution records, as the Commissioner can request historical records without a time limit.

Superannuation obligations for entertainers and support workers

The ATO has significantly revised its guidance on SG obligations for businesses engaging entertainers, including sportspeople, performers, musicians, filmmakers and individuals providing related support services.

In practical terms, this captures sportspeople, music and dance performers, individuals undertaking promotional activities, as well as stagehands, lighting technicians, referees and other similar support roles.

Importantly, superannuation may apply even if an individual:

• Has an ABN.
• Issues invoices.
• Is engaged on a one-off basis.
• Describes themselves as an independent contractor.

SG only applies to the labour component of relevant payments, with certain entities and arrangements excluded. Itemised non-labour costs may also be excluded from the calculation.

The obligation sits with the party engaging the performer and cannot be satisfied by simply paying the SG amount directly to the individual as part of their fee.

Businesses should review their accounts payable processes, request itemised invoices and clearly document whether agreed fees are inclusive or exclusive of superannuation.

Fair Work Ombudsman annual report: Wage compliance and enforcement

In its latest annual report, the Fair Work Ombudsman (FWO) reported a significant increase in both employee tip-offs and wage recoveries.

Key statistics include:

• 31,596 anonymous reports received, an increase of 23% from the previous year.
• More than $453 million recovered for over 181,000 underpaid workers, representing a 27% increase in recoveries.
• 60 litigations commenced during the year.
• 1,392 compliance notices issued.
• 791 infringement notices issued.

The report also demonstrates the FWO's increasingly active enforcement approach.

The regulator continues to focus on industries including hospitality, construction, aged care and horticulture, while expanding collaboration with other regulators, unions and employer organisations.

Fair Work Ombudsman Anna Booth stated:

"As ever, we will prioritise helping small business employers and employees and vulnerable workers, including visa holders."

She also encouraged anyone with concerns about workplace rights to contact the FWO.

For employers, the key message is that workplace compliance issues are increasingly likely to come to the FWO's attention through employee or public tip-offs.

Systemic underpayments and poor recordkeeping can lead to substantial remediation and enforcement action.

This reinforces the value of proactively reviewing payroll practices, employee entitlements and recordkeeping rather than waiting for an issue to trigger regulatory scrutiny.
 

 Sunnyfield underpayment case: $5.43 million in employee entitlements 

Sunnyfield underpayment case: $5.43 million in employee entitlements

On 14 October 2026, disability services provider Sunnyfield signed an enforceable undertaking with the Fair Work Ombudsman after underpaying 1,767 current and former employees approximately $5.43 million between 2018 and 2024.

The underpayments arose from inconsistent application of pay point progression requirements under the Social, Community, Home Care and Disability Services Industry (SCHADS) Award and an enterprise agreement.

As a result, some employees were not progressed to the correct pay point, affecting their:

• Base rates of pay.
• Casual loading.
• Weekend and shift penalties.
• Overtime.
• Annual leave and personal leave.
• Community service leave.
• Public holiday payments.

For employers, this case emphasises the importance of understanding automatic progression clauses within applicable awards and enterprise agreements, and the flow-on effects these requirements can have on employee entitlements.

Fair Work compliance operation targeting horticulture and labour hire

The FWO has announced a coordinated compliance operation targeting horticulture farms and labour hire businesses in the Nambucca Valley and Coffs Harbour regions.

The operation examined workplace, tax, migration and safety compliance.

Known concerns include:

• Employee underpayments.
• Payments below minimum hourly rates.
• Failure to provide required breaks.

The key takeaway for employers is that regulatory activity is increasingly coordinated, meaning a single inspection can potentially expose issues across multiple compliance regimes.

Businesses should undertake appropriate due diligence on labour hire providers and contractors, including ABN, payroll and superannuation checks, and ensure they maintain robust compliance records.

Closing remarks

Thank you for joining us for our November employer services update.

If you have any questions or would like to discuss how these developments may affect your business, please don't hesitate to contact your local RSM employer services team.

You can reach out to myself and Peter in Melbourne, Gina, Angela and Niamh in Perth, or Jason in Sydney.

We look forward to connecting with you soon.