Global Employer Tax Update

Payroll Compliance, Superannuation, and Fair Work Changes
Date

In this Employer Services Update, the Global Employer Services team at RSM provided a detailed analysis of the most significant developments shaping employment taxes and industrial relations. The update examines recent wage compliance rulings, payroll tax litigation, and superannuation reforms, each of which underscores the increasingly complex compliance environment confronting Australian employers.

Key developments in employment taxes and workplace compliance

• Wage compliance crackdowns: With NAB’s remediation costs surpassing $400m and Qantas receiving a record $90m penalty for breaches of the Fair Work Act, regulators continue to demonstrate that non-compliance with wage and entitlement obligations will attract substantial financial and reputational consequences.
• Payroll tax and contractor risks:  The Uber payroll tax decision, coupled with heightened audit activity by State Revenue Offices, illustrates the elevated compliance risks associated with contractor arrangements, particularly within the gig economy and other non-traditional workforce models.
• Superannuation reforms: The ATO’s advancement of Payday Super through real-time payment systems, alongside intensified investigations into Superannuation Guarantee obligations, signals a decisive shift towards greater transparency and enforcement across payroll and superannuation compliance.