This 2023, Australian employers will not only be busy with meeting their tax deadlines for super lodgments. In the coming months, they will be required to comply with new developments in employment law in Australia, with key amendments in:
- Pay secrecy
- Flexible work arrangements
- Parental leave
- Enterprise agreements
- Fixed-term contracts
Tax deadlines for employers in Australia for 2023
Provided by the Australian Taxation Office (ATO), the following dates are for June 30 balancers only, being provided as a general guide but not intended to reflect actual dates. ATO may update specific dates when necessary. Due dates that fall on the weekends and/or public holidays can be lodged and paid on the next business day.
21 January
- Lodge and pay PAYG instalment activity statement for head companies of consolidated groups (for Q2, 2022-23)
30 January
- Employee Super Guarantee is due
28 February
- Lodge and pay self-managed superannuation fund annual return for new registrant (taxable and non-taxable) SMSF, unless advised of an earlier due date
- Lodge and pay Superannuation Guarantee Charge Statement if the employer did not pay enough contributions on time
31 March
- Lodge tax returns for companies and super funds with total income of $2 million or more in the latest year lodged (except large and medium taxpayers), unless return was due earlier
21 April
- Lodge and pay PAYG instalment activity statement for head companies of consolidated groups (for Q3, 2022-23)
28 April
- Employee Super Guarantee is due
15 May
- Due date for companies and super funds to pay if required
28 May
- Lodge and pay Superannuation Guarantee Charge Statement if the employer did not pay enough contributions on time
5 June
- Lodge tax return for all companies and super funds with a lodgment due date of 15 May 2023 (except large and medium taxpayers), unless return was due earlier
30 June
- Super guarantee contributions must be paid by this due date to qualify for a tax deduction in the 2022-23 financial year
New employment laws in Australia for 2023
Pay secrecy ban
Under the Fair Work Act, pay secrecy is now prohibited and employers who still include salary confidentiality provisions in their employment contracts will be penalised. Effective on 7 June 2023, pay secrecy clauses can no longer be included in employment contracts or similar written agreements.
In addition, employees now have the right to disclose their pay and ask other employees about their own pay. However, they cannot be compelled by another person to discuss their salary if they do not want to.
Flexible work arrangements
Starting 6 June 2023, employees can request flexible work arrangements under the Fair Work Act in certain circumstances. Those who can request flexible work must meet the following criteria:
- 55 years old or older
- living with a disability
- parents or responsible for the care of infants or school-aged children
- experiencing family or domestic violence
- classified as carers under the Carer Recognition Act 2010
- caring for an immediate family experiencing family or domestic violence
Employers can refuse a request for flexible work arrangements on reasonable business grounds but must consult and reach an agreement with the concerned employee. If no agreement can be reached, the Fair Work Commission can be notified to make an order that the request be granted.
Extended parental leave
Key changes to paid parental leave, including dad and partner entitlements, will take effect on 1 July 2023. Under the new legislation, both parents will be allowed to take parental leave at the same time. Their entitlements will combine up to a single payment of 20 weeks at the national minimum wage rate. These entitlements will increase by 2 weeks per annum up to a total of 26 weeks from 1 July 2024 to 1 July 2026.
Amendments to enterprise agreements
Effective on 6 June 2023, unions can re-establish multi-employer sectoral bargaining. Under the new legislation, the establishment of multi-employer bargaining will no longer be restricted to employers. These changes will be subject to the requirement that the majority of employees at each employer within the same industry must want to bargain with their respective employers.
Limits to fixed-term contracts
Beginning 6 December 2023, certain amendments to fixed-term contracts or maximum-term contracts will take effect, making it unlawful for employers to:
- make the term of contract, including any renewal period, greater than 2 years
- extend the contract more than once (even if the period is less than 2 years)
Employers will need to provide their fixed-term employees with a ‘Fixed Term Contract Information Statement’ from 6 December onwards.
Stay on top of tax due dates and emerging laws with a trusted firm
Navigating compliance in Australia can be difficult, especially if you’re unsure how to remain compliant all year round. From company formation in Australia to understanding tax obligations and emerging laws, we at Company Set Up Australia are ready to provide every professional assistance you need. Our business consultants and tax advisors are equipped with years of solid experience in helping clients make informed decisions on their most pressing challenges in doing business in Australia.
Frequently Asked Questions (FAQs)
If you miss a tax deadline in Australia, you will be liable to pay a ‘failure to lodge on time penalty’ (FTL) to ATO, which can vary from $180 to $900 per tax return/activity statement for individuals and small businesses, and can be anywhere from $4,500 to $9,000 for large companies.
Pay secrecy clauses in Australia are employment-related clauses that prohibit employees from disclosing, discussing, and comparing their remuneration packages with one another. They are generally included in employment contracts.
Yes. Under the new legislation, an employer can refuse a request for parental leave based on reasonable business grounds. They have to detail their reasons in writing. Reasonable business grounds may include:
- inability to recruit additional staff
- inability to manage the workload among existing staff
Multi-employer bargaining in Australia is defined as a negotiation between multiple employers and unions, rather than a single employer taking part in the negotiation. There can be two or more employers bargaining jointly, through an agent, association, or committee, with one or more labour unions representing employees of said employers.
Author Bio
Venus Angelli David is a Digital Copywriter with over 7 years of experience writing about business, recruitment, tech, and immigration for consulting firms in Australia, Singapore, the Philippines, and Indonesia. She loves coffee, cats, and yoga.