2025 Employment Taxes annual update

PwC was joined by the ATOs’ Peta Lonergan (Assistant Commissioner, Superannuation and Employer Obligations) at the 2025 Employment Taxes annual update to discuss the Superannuation Guarantee (SG), Fringe Benefits Tax (FBT), Payroll Tax and Contractor developments and trends from the last 12 months.

The ATO discussed the increasing data-led approach to monitoring superannuation compliance, with common SG errors being due to employers paying the wrong amount of super, payments being made late, and superannuation contribution rejections. With the introduction of Payday Super looming and given the difficulty employers already have with the quarterly compliance framework, employers should consider how they will remain compliant with the proposed seven-day payment turnaround. Employers were encouraged to review their processes and prepare for the transition to payday superannuation, despite the absence of final legislation.

The latest FBT decisions on car parking and deductibility of travel expenses were discussed, as well as practical tips on how to apply the new alternate record keeping requirements.

We also discussed the divergent approach to payroll tax obligations being taken across jurisdictions (in relation to exemptions and relief measures, surcharges and amendments relating to wage underpayments). The impact of two landmark cases (being Loan Market Group Pty Ltd & Anor v Chief Commissioner of State Revenue (NSW) [2024] NSWSC 390 and Uber Australia Pty Ltd v Chief Commissioner of State Revenue [2024] NSWSC 1124) dealing with the relevant contract provisions was also discussed, along with the additional data requirements featuring in NSW annual reconciliations, and the NSW Parliamentary Inquiry into the relevant contract and employment agency provisions.

Also covered were key regulatory and legislative changes affecting worker classification, including the new ATO ruling on who is an employee for SG purposes, and the decision impact statements on Jamsek v ZG Operations Australia Pty Ltd (No 3) and JMC Pty Ltd v Commissioner of Taxation. We also discussed an increased volume of cases and guidance dealing with the extended definition of an employee under sections 12(3) and 12(8) of the Superannuation Guarantee (Administration) Act 1992. These developments emphasise the need for employers to carefully assess contracts and the nature of work.

Lastly, the ATO have encouraged employers to seek out additional resources on their website, which have been provided below:

Payroll Governance

• For more information on improving payroll governance, visit ato.gov.au/payrollgovernance

Super Guarantee

• For more information and a checklist to see if you’re meeting you SG obligations, visit ato.gov.au/superquickcheck
• For more information on the SG rates, visit ato.gov.au/SuperRate
• For more information around the 2023–24 compliance results, visit ato.gov.au/SGsnapshot

PAYGW/STP

• For more information, visit ato.gov.au/paygw
• For more information visit on finalising your STP data, visit ato.gov.au/finalisingSTP

FBT

• For more information on FBT, visit ato.gov.au/FBT or the Fringe benefits tax – a guide for employers
• For more information on FBT on plug-in hybrid electric vehicles, visit ato.gov.au/fbtphev
• For more information on fringe benefits tax alternative record keeping, visit ato.gov.au/FBTaltrecordkeeping

Overall, the 2025 Employment Taxes Annual Update provided a range of insights and practical guidance for employers navigating the evolving landscape of employment tax and workforce regulations.

For more on this update, watch the on demand here.