New Employee Onboarding - ATO Requirements
Running a small business means juggling countless responsibilities, and staying on top of ATO compliance is one of the most critical. The latest updates from the Australian Taxation Office bring important changes that could directly impact your business operations and cash flow. Here's what you need to know to stay compliant and avoid costly penalties.
The Hidden Risks of Employee Self-Onboarding Tools
Digital employee onboarding tools are everywhere now, and they're genuinely helpful for streamlining your hiring process. Your new employees can enter their own details, saving you time and reducing manual errors. But here's the catch that many business owners miss: you're still 100% responsible for compliance, even if your employee makes the mistake.
What This Means for Your Business
Even when employees enter their own information, you must ensure:
- Records are accurate and complete – Double-check everything before the first pay run
- Tax File Numbers are valid – They should be exactly nine digits with no obvious errors
- Super fund details are correct – Use the ATO's Super Fund Lookup tool to verify
- Bank account details are accurate – Cross-reference with ID documents
Your 5-Step Compliance Checklist
- Set clear onboarding processes – Make sure every new employee knows exactly what information they need to provide
- Review everything before first pay – Check TFNs, bank accounts, birthdates, and super fund details
- Store records securely – TFN declarations, contracts, and super choices must be kept for five years after the employee leaves
- Verify your payroll system – Ensure it can generate compliant pay slips and store documents securely
- Maintain a paper trail – Save all emails, notes, and communications related to payroll and onboarding
Remember: Tax File Numbers are classified as sensitive information. You must protect them from misuse under both ATO rules and the Privacy (TFN) Rule 2015. Store them securely and limit access to authorized personnel only.
Major Change: ATO Account Balances Now Include "Debts on Hold"
Starting August 2025, the ATO is making your tax account more transparent – but this might come as a shock if you have old debts you'd forgotten about.
What Are "Debts on Hold"?
These are amounts you owe the ATO that they've temporarily stopped chasing because the debt was too small to be worth pursuing. While on hold, the ATO doesn't contact you about these debts, but they do use any future refunds or credits to reduce them.
What's Changing
Previously, these debts didn't show in your account balance, making it hard to see your true financial position with the ATO. Now they'll be included, giving you (and your bookkeeper) a complete picture.
What to Expect
- Debts of $100 or more: You'll receive a letter before they're added to your account
- Debts under $100: Added automatically without notification
- Existing payment plans: The ATO will consult with your agent before adding the debt
The Interest Factor
Here's some good news: while debts are on hold, the ATO doesn't charge interest. When they're added to your account, interest is waived for another six months. After that, interest may start accumulating – so it's worth paying these off if you can.
Why These Changes Matter for Your Business
These updates aren't just administrative changes – they directly impact your cash flow, compliance risk, and business planning:
- Better financial visibility: Seeing all debts in one place helps you plan payments and cash flow more effectively
- Reduced compliance risk: Understanding your true position with the ATO prevents nasty surprises
- Improved decision-making: Your bookkeeper can provide better advice when they can see the complete picture
Action Steps for Small Business Owners
- Update your calendar with all the critical ATO dates mentioned above
- Review your employee onboarding process – even if you use digital tools, ensure you're checking everything
- Check your ATO account for any debts on hold that might appear
- Speak with your bookkeeper about how these changes affect your specific situation
- Set up systems to ensure ongoing compliance with record-keeping requirements
Critical ATO Lodgement Dates You Can't Miss
Mark these dates in your calendar right now – missing these deadlines could result in penalties and interest charges that hurt your bottom line.
Critical ATO Lodgement Dates You Can't Miss
Monthly BAS/IAS Lodgements
- September Activity Statement: Due 21 October 2025
- October Activity Statement: Due 21 November 2025
Quarterly BAS Lodgements
- 1st Quarter 2026 Financial Year (September Quarter 2025): Due 28 October 2025
- 2nd Quarter 2026 Financial Year (December Quarter 2025): Due 28 February 2026
Pro tip: When a due date falls on a weekend or public holiday, you can lodge or pay on the next business day. But don't rely on this – plan ahead to avoid last-minute stress.
Superannuation Guarantee Contributions
This is where many small businesses trip up. Late super payments aren't just bad for your employees – they're not tax deductible either.
- 1st Quarter 2026 (July-September 2025): Contributions must be in the fund by 28 October 2025
- 2nd Quarter 2026 (October-December 2025): Contributions must be in the fund by 28 January 2026
Important: If you're behind on super payments, don't ignore it. Contact your bookkeeper or accountant immediately to discuss your options and get back on track.
The Bottom Line
Staying compliant with ATO requirements doesn't have to be overwhelming, but it does require attention to detail and proactive planning. These recent changes are designed to make the system more transparent and fair, but they also place additional responsibility on business owners to stay informed and compliant.
The key is having robust systems in place and working with qualified professionals who understand these requirements. Whether you're managing payroll, lodging BAS statements, or dealing with historical debts, the cost of getting it wrong far exceeds the investment in getting it right.
Need help navigating these changes? Don't wait until you're facing penalties or compliance issues. Reach out to discuss how these updates affect your specific business situation and ensure you're set up for success.
Disclaimer: This information is of a general nature only and may not apply to your individual business circumstances. For specific advice relating to your situation, please consult with your accountant or bookkeeper.
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