The Times Australia
Small Business News

.

Australian businesses face uncertainty under new wage theft laws



As Australian businesses brace for the impact of new wage theft laws under The Closing Loopholes Acts, data from Yellow Canary, Australia’s leading payroll audit and compliance platform, highlights significant uncertainty and concern.

According to Yellow Canary’s 2025 State of Payroll Compliance Report, released Friday, nearly one in five businesses (17 per cent) are unsure if they are paying employees correctly.

The report also found that 19 per cent suspect underpayment issues but have yet to confirm them, while 40 per cent of compliance leaders worry about the increased administrative burden from the new laws that took effect on 1 January.

Marcus Zeltzer, Founder and Managing Director of Yellow Canary said, “It is concerning that so many businesses are unsure about their compliance status. When you combine this uncertainty with changing laws and additional administrative demands, it is highly likely we’ll continue to see headlines about underpayments."

Employers who deliberately underpay their employees now face significant penalties, including criminal sanctions and fines of up to $1,565,000 for individuals, and the greater of $7,825,000 or three times the underpayment amount for corporations.

Payroll accuracy depends on human resources, legal, technology, and workforce planning working together. Adapting to changes across these functions has been difficult, leading many businesses to remain reactive instead of proactive in managing compliance,” he explained.

Reviewing billions of dollars in payroll records, Yellow Canary found that underpayments often amount to 1 to 3 per cent of payroll—a systemic issue businesses must address to avoid escalating problems.

Zeltzer added that proactive measures, supported by a culture of compliance, are critical to avoiding underpayment risks and penalties.

The key to improving compliance lies in people, processes, and platforms,” Zeltzer said. “Businesses must prioritise regular payroll audits, leverage advanced compliance technology for transparency, and foster cross-functional collaboration to adapt to evolving laws.”

Despite the challenges, the report indicates progress. Zeltzer highlighted that 22 per cent of businesses have already identified underpayment issues and are actively working to resolve them. Additionally, 56 per cent of businesses currently use payroll auditing technology, while another 22 per cent plan to implement proactive compliance solutions in 2025—demonstrating a clear shift towards more proactive compliance practices.

Employers have two core responsibilities: keeping employees safe and paying them correctly,” he said. “Over the last 40 years, workplace safety became a constant priority. Now, we’re seeing the early stages of a similar evolution in payroll compliance.”

About Yellow Canary

Yellow Canary is the provider and developer of Australia’s leading payroll audit and compliance platform, empowering businesses to take control of their workforce compliance obligations.

By leveraging advanced automation and Artificial Intelligence (AI), their platform supports proactive management of employee payments, entitlements, superannuation, and long service leave, offering both historical and ongoing compliance reviews to navigate the complexities of the industrial relations landscape.

Download the 2025 State of Payroll Compliance report: https://www.yellowcanary.com.au/resources/free-downloads/2025-state-of-payroll-compliance-report

Property Times

Top Tips for Finding the Ideal Block to Build Your Home

There’s something deeply personal and exciting about building your own home. You’re not just choosing paint colours or furniture, you’re creating a space that reflects your lifestyle, your dreams, and your future. However, before you start sketchin...

The Home Buying Process Explained Step by Step

Buying a home is a thrilling milestone, but it can also feel like navigating a maze without a map. With paperwork, finances, and decisions at every turn, understanding the home-buying process is crucial for success. Whether you're a first-time buye...

Thinking of Selling Your Home? Here’s What You Need to Know

Selling a home is more than just putting up a “For Sale” sign. It’s a strategic process that involves preparation, pricing, and negotiation - all aimed at getting the best value for your property. Let’s go through the most important steps to take b...

Smart Ways to Earn Passive Income from Real Estate

Imagine making money without doing much work. You get paid even while you sleep, travel, or do fun things. This is called passive income. Indeed, real estate has great ways to do this. You don't have to be a landlord all day; similarly, you don't h...

Food & Dining

Onsite Caterer vs a Full Service Venue: 9 important things to explore

Choosing between an external catering company and an all-inclusive venue is a major decision that affects cost, flexibility, food quality, and the overall event experience. Venues with in-house catering offer convenience and streamlined coordinatio...

Meal Prep as Self-Care? The One Small Habit That Could Improve Your Mood, Focus & Confidence

What if the secret to feeling calmer, more focused, and emotionally resilient wasn’t found in a supplement or self-help book — but in your fridge? That’s the surprising link uncovered by leading dietitians Anna Debenham and Alex Parker from The Biti...

Cult Favourite, TokyoTaco, Opens Beachfront at Mooloolaba this June

FREE Tokyo Tacos to Celebrate!  Cult favourite Japanese-Mexican restaurant TokyoTaco is opening a beachfront venue at the Mooloolaba Esplanade on Queensland’s Sunshine Coast this June.  The doors of the new venue will open on 18 June and to cel...

International lager claims crown as Australia’s most preferred beer

Launching its inaugural ‘Brand Map of Australia’, Tracksuit reveals Corona as the nation’s most preferred beer  Sydney, Thursday, 29 May 2025 - From iconic mass-produced lagers to innovative craft brews, beer is woven into the fabric of Australi...

Business Times

Agentforce for Financial Services: Merging AI and Human Expertise…

In this rapidly evolving world of financial services, deploying customer experiences that are personalized and intelligen...

Samsara Eco and lululemon announce 10 year partnership

lululemon and Samsara Eco Announce 10-Year Plan to Advance Recycled Material Portfolio Plan will see lululemon source a...

Barelli Bathrooms announces celebrity interior designer Kellie Ri…

Barelli Bathrooms, a leading name in contemporary bathroom accessories and design, is proud to announce its new national ...

The Times Features

Exploring the Curriculum at a Modern Junior School in Melbourne

Key Highlights The curriculum at junior schools emphasises whole-person development, catering to children’s physical, emotional, and intellectual needs. It ensures early year...

Distressed by all the bad news? Here’s how to stay informed but still look after yourself

If you’re feeling like the news is particularly bad at the moment, you’re not alone. But many of us can’t look away – and don’t want to. Engaging with news can help us make ...

The Role of Your GP in Creating a Chronic Disease Management Plan That Works

Living with a long-term condition, whether that is diabetes, asthma, arthritis or heart disease, means making hundreds of small decisions every day. You plan your diet against m...

Troubleshooting Flickering Lights: A Comprehensive Guide for Homeowners

Image by rawpixel.com on Freepik Effectively addressing flickering lights in your home is more than just a matter of convenience; it's a pivotal aspect of both home safety and en...

My shins hurt after running. Could it be shin splints?

If you’ve started running for the first time, started again after a break, or your workout is more intense, you might have felt it. A dull, nagging ache down your shins after...

Metal Roof Replacement Cost Per Square Metre in 2025: A Comprehensive Guide for Australian Homeowners

In recent years, the trend of installing metal roofs has surged across Australia. With their reputation for being both robust and visually appealing, it's easy to understand thei...