September 2025 Round Up
Running a business isn’t just about meeting day-to-day obligations — it also means staying across compliance requirements, workplace responsibilities, and tax rules that can change the way you operate. This month’s round-up highlights three areas worth revisiting: the current legal position on work from home requests, how to keep positive duty obligations active rather than one-off, and the impact of state-based taxes on business costs. Together, these updates provide a clear picture of what’s important to keep on your radar.
1. Beyond the ATO: State Taxes Every Business Needs to Keep in Mind Read the full article
2. Why it’s time to revisit your positive duty obligations Read the full article
3. Senate rejects ‘right to work from home’ proposal Read the full article
Beyond the ATO: State Taxes Every Business Needs to Keep in Mind
Running a business in Australia means juggling more than just ATO obligations. Beyond corporate tax, GST, and PAYG, each state and territory has its own set of taxes that can quietly eat into your bottom line — from payroll thresholds to property duties and even landfill levies. Knowing what applies where you operate isn’t optional; it’s part of staying compliant and avoiding costly surprises.
1. Payroll Tax
What it is: A state or territory tax levied on wages paid by employers above a certain threshold.
Variation by state:
- Rates and thresholds vary; for instance, in Victoria, it’s 4.85% for wages above $700,000 and in NSW, it’s 5.45% on wages exceeding $1.2 million (as of July 2024–25) (Wikipedia).
Recent developments:
- NSW: The threshold has remained frozen, causing businesses to pay more due to inflation-driven “bracket creep”.
- NT: Introduced a higher payroll tax-free threshold, exemptions for apprentices/trainees, and adjusted not-for-profit rules (Johnson Winter Slattery).
- Queensland: Extended a 50% payroll tax rebate for apprentice/trainee wages and simplified foreign surcharge applications (Johnson Winter Slattery, EY).
- ACT and others: Introduced various changes including rate adjustments and additional levies (Johnson Winter Slattery, EY)
2. Stamp Duty (Duties)
What it is: Tax on transactions like transfers of property, leases, and sometimes business assets or share transfers.
By state: Applies in all jurisdictions, with rules varying by type of transaction (avstax.com.au, PwC Tax Summaries).
Notable change in Victoria: Since July 1, 2024, commercial/industrial property sales may transition to the Commercial & Industrial Property Tax (CIPT)—an annual 1% tax on unimproved land value (0.5% for qualifying Build-to-Rent)—replacing stamp duty over time (PwC Tax Summaries).
3. Land Tax
What it is: Annual tax based on unimproved land value, excluding primary residences or some exempt land types.
Variation by state: Thresholds and rates differ. E.g., Tasmania has progressive rates ranging around 0.55% to 1.5% (Wikipedia, bonerath.com.au).
Changes:
- NSW: Started offering permanent concessions for Build-to-Rent developments and foreign purchaser duty exemptions (Johnson Winter Slattery, EY).
- Victoria: Extended off-the-plan transfer duty concessions (Johnson Winter Slattery).
- WA: Provided increased land tax relief for BTR projects (Johnson Winter Slattery, PwC).
- ACT and other jurisdictions: Ongoing changes tied to third-stage tax reforms (EY).
4. Landfill Levy/ Waste Disposal Levies
What it is: Environmental levies applied to landfill waste, varying by state/territory and waste type (e.g., metropolitan vs regional, construction vs general waste).
Coverage: All states except Tasmania and Northern Territory apply these levies (Wikipedia).
Summary of State-Based Business Taxes
Tax Type | Description / Examples |
Payroll Tax | Levied on wages above thresholds; varies by state (e.g., NSW, Victoria, NT, QLD). |
Stamp Duty | Applied to property transactions, vehicle leases, asset transfers; transitioning in some states (like Vic). |
Land Tax | Annual tax based on land value (excluding residences/primary production); thresholds vary. |
Landfill Levies | Waste disposal taxes set by states—vary by jurisdiction and waste type. |
Why It Matters
If your business operates across multiple states or sectors, these taxes can significantly impact your cost structure, especially:
- Payroll tax affects hiring decisions.
- Stamp duty and land tax matter for property transactions and ownership.
- Landfill levies can influence logistics, waste management, and operational costs.
What to Do Next
- Identify your operating state(s).
- Visit your state revenue office’s website to check current thresholds, rates, and exemptions.
- Monitor recent budget changes (like those covered in 2025/26 state budgets) to spot upcoming reform (Johnson Winter Slattery, Daily Telegraph).
- Consult a tax professional or accountant who can help you manage liabilities and optimize strategies.
If you’d like a deeper dive into any specific state’s tax regime or guidance on how these taxes apply to your business structure or sector, get in touch.
Why It’s Time to Revisit Your Positive Duty Obligations
With new enforcement powers now in effect, employers can no longer rely on “set and forget” compliance. The Australian Human Rights Commission can investigate your workplace even if no complaint has been made, so every business must show active compliance with the positive duty under the Sex Discrimination Act 1984.
What is the positive duty?
Since December 2022, employers have been required to take reasonable and proportionate steps to eliminate unlawful conduct such as sexual harassment, discrimination, and hostile workplace environments. From December 2023, the Commission gained powers to enforce these obligations directly.
Why revisit now?
The Commission can initiate investigations without a complaint.
Applicant law firms are increasingly using gaps in employer compliance in disputes.
Passive compliance (policies, training once-off) is no longer enough.
Key areas to focus on
1. Leadership
Leaders must set the tone for workplace culture and be actively engaged.
Ask: Are leaders aware of recent incidents? Do they understand their role in prevention and response?
2. Training and communication
Refresher training is essential. One-off sessions lose impact quickly. Pair training with consistent communication so expectations are reinforced.
Ask: Have employees received refresher training in the past 12 months? Are managers reinforcing respectful behaviour in team meetings?
3. Risk assessment
This is not a one-time exercise. Review at least annually, engage with staff, and address emerging risks.
Ask: When was the last review? Are risks like harassment or discrimination being mapped and managed?
4. Policies
Out-of-date policies send the wrong signal. Policies should clearly define unlawful behaviours and outline reporting processes and consequences.
Ask: Does your policy include clear definitions and reporting steps? Is it updated regularly?
5. Reporting processes
Employees must know how to report unlawful conduct, and managers must know how to respond. A trauma-informed, person-centred approach is essential.
Ask: Do staff know who to report to? Are those receiving reports trained to handle them properly?
6. Prevention Plan
A Prevention Plan must be a living document, updated to reflect real risks and feedback from staff. It should cover leadership accountability, training, and measurable actions.
Ask: Has it been updated in the past 6–12 months? Is it actively guiding workplace practice?
Final thought
Positive duty compliance is not a tick-box exercise. It’s a continuous, proactive commitment to safety, respect, and prevention. If the Commission asked tomorrow, could your business show what it has done?
If the answer is no—or even “not sure”—now is the time to act. Get in touch for more support with your Positive Duty Obligations.
Do Employers Have to Offer Work From Home?
The Senate has rejected a Greens proposal to change the Fair Work Act to give employees a legal right to work from home meaning there is currently no federal requirement for employers to offer Work From Home.
State developments
Victoria is the only state planning legislation, with a proposal to guarantee two WFH days per week from 2026. This is still in draft and open for consultation. Other states and territories have not announced similar moves.
Business concerns
Small business groups argue mandated Work From Home rights would increase compliance burdens, create legal uncertainty, and disadvantage firms that cannot offer remote work. Major industry bodies including COSBOA, the Ai Group and ACCI oppose the change.
Support for Work From Home
The Victorian Government argues Work From Home benefits employers, pointing to data that remote workers log nearly 20 per cent more hours than office-based staff.
What this means for employers
Across Australia there is no legal obligation to offer Work From Home. In Victoria, change is still uncertain, so business owners should keep an eye on legislation. Nationally, flexibility remains at employer discretion, though the debate is ongoing.
Important: This is not advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval. Liability limited by a scheme approved under Professional Standards Legislation.
