The Compliance Traps Costing Aussie Businesses Thousands

Why Compliance Still Trips Up Smart Business Owners

Compliance isn't just ticking boxes—it’s protecting your business from risk, fines, and financial chaos. But even organised business owners can make costly mistakes without realising it.

Here are the most common compliance mistakes we see—and how to stay on the ATO’s good side.

1. Missing Superannuation Deadlines

Super must be paid on time and in full. Late payments aren’t just frowned upon—they’re not tax-deductible and can trigger penalties.

✅ Fix it: Automate super payments with your payroll software. Mark your calendar: the 25th of each quarter is the key date. Learn more

2. Incorrect or Incomplete Single Touch Payroll (STP) Reporting

STP Phase 2 is now mandatory. If your system isn’t updated, or you’re not reporting correctly to the ATO, you could be at risk of penalties.

✅ Fix it: Ensure your payroll software is STP Phase 2-compliant. Check with your provider (e.g., Xero, MYOB). More info here

3. Misclassifying Employees vs. Contractors

This is one of the most common issues that leads to audits. Getting this wrong can mean underpaying entitlements or missing PAYG obligations.

✅ Fix it: Use the ATO’s Employee or Contractor Decision Tool before onboarding anyone.

4. Failing to Issue Payslips on Time

Payslips must be issued within 1 working day of payment. Miss this deadline, and you're breaching Fair Work requirements.

✅ Fix it: Automate payslip delivery through your accounting platform. Fair Work Info

5. Not Keeping Proper Records

You’re legally required to keep financial records (like invoices and receipts) for at least 5 years.

✅ Fix it: Use cloud accounting systems and receipt apps like Hubdoc or Dext to stay compliant and audit-ready.

6. Ignoring GST Thresholds

If your business turnover exceeds $75,000, GST registration is mandatory. Missing this can lead to backdated GST liabilities.

✅ Fix it: Monitor turnover regularly and register as soon as you hit the threshold. Register for GST

7. Underestimating EOFY Planning

Many businesses wait until June to think about EOFY—and that’s a costly delay.

✅ Fix it: Start reviewing your books, expenses, and deductions now. Use our free EOFY business checklist to avoid last-minute panic.

Final Tip: Don’t Do It Alone

Even with the best tools, compliance can be overwhelming. A proactive accountant or tax advisor can spot risks and help you get ahead.

📅 Need a quick EOFY compliance check? Book a free consultation here.

Book Free Consultation

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Note: This post is general in nature and not intended as personal financial advice. Always speak to a qualified advisor about your specific situation.