The 2025 Business Compliance Checklist: What Owners Can’t Afford to Miss

Running a business in Australia can be both exciting and overwhelming. Over the years, I’ve seen more and more business owners caught up in compliance obligations — not because they’re careless, but because they’re busy running the business while rules keep changing, deadlines shift, and government reporting becomes more complex. Falling behind isn’t just stressful; it can also be costly, with penalties, interest charges, and even reputational risks.

That’s why I’ve put together this 2025 Business Compliance Checklist. Think of it as your roadmap for the year — a way to stay on top of the essentials and avoid the traps that too many owners fall into. Whether you’re a sole trader, running a company, or managing a trust, these are the areas you can’t afford to overlook.

Shifting from Employee Thinking to Business Owner Mindset

One of the biggest challenges I see with new business owners is that they don’t always make the mental shift from being an employee to truly acting like an owner. It’s understandable — cash flow is tight, the pressure is real, and it’s easy to think, “I can handle it myself and save money.” But running a business is very different from working in one. As an owner, you need to understand the core costs of your business and accept them as part of doing business.

Trying to cut corners often ends up costing more in the long run. For example, if you’re an electrician generating income on-site or a consultant billing clients, your time is best spent doing that — not attempting to keep your own books. Hiring a bookkeeper isn’t a luxury; it’s a necessary cost of business. It’s tax deductible, it ensures your records stay organised, and it frees you up to focus on income-generating work. Without that discipline, the lack of proper record-keeping can lead to missed deductions, compliance issues, and unnecessary stress that ultimately erode your profits.

The sooner you embrace the business owner mindset — recognising that investing in professional help is part of building a sustainable business — the smoother your journey will be.

Stay Up to Date with BAS and GST Obligations

For many small businesses, the Business Activity Statement (BAS) is the most frequent compliance headache — and in 2025, the ATO continues to crack down on late lodgements and under-reported GST. Penalties for late BAS can be significant, with some businesses facing charges of up to $1,500 per quarter.

Most businesses are required to lodge quarterly, though some may need to lodge monthly depending on turnover. If your business turnover is below the $75,000 GST registration threshold and you’ve voluntarily registered for GST, you may be eligible to lodge annually — but only if this was specified at the time of registration.

Accuracy in BAS reporting is equally critical. Claiming GST credits incorrectly, even by accident, can trigger an ATO review, and in more serious cases where GST has been deliberately over-claimed across multiple years, it has even resulted in jail sentences.

If you find yourself struggling with deadlines or record-keeping, consider engaging a bookkeeper. The cost is often far less than the penalties, stress, and lost time that come with non-compliance.

Superannuation Guarantee (SG) Compliance

Superannuation is one of the most common areas where small businesses get caught out. With Single Touch Payroll (STP) now integrated into most payroll software, owners can no longer afford to overlook their obligations. The Super Guarantee rate has already increased to 11.5% from 1 July 2024 and will rise again to 12% from 1 July 2025. Yet many businesses still forget to update their payroll systems, which leads to shortfalls and penalties. To make things more challenging, the ATO has announced it will close its Superannuation Clearing House from 1 July 2026, meaning businesses will need to manage payments directly through other platforms. This makes paying super on time — and getting the calculations right — absolutely critical.

Super contributions must be paid by the 28th day after the end of each quarter, and the money must clear into the employee’s fund by that date, not just be transferred. Always allow a few extra days for processing. New employees are also entitled to nominate their own fund, or else contributions must be directed to their stapled super fund. Most importantly, remember that late super is not tax deductible, so failing to plan for it directly increases your tax bill. Smart business owners keep cash flow aside for employee super as a non-negotiable expense — because at the end of the day, super is not just a compliance task, it’s part of running a responsible and sustainable business.

Payroll and Single Touch Payroll (STP) Reporting

Since the introduction of STP, every pay run is now reported to the ATO. While most businesses have adjusted, errors still happen frequently.

• Employee setup: Ensure Tax File Numbers, addresses, and super fund details are correct from the start.
• STP Phase 2: Requires reporting of more detail (like disaggregation of gross income). Double-check your software is configured properly.
• End-of-year finalisation: Employers must “finalise” payroll data in STP by 14 July each year. Employees rely on this for their tax returns.

Tip: Run monthly reconciliation of payroll reports against bank payments — it’s easier to fix issues early rather than at EOFY.

Income Tax and Company Returns

It’s tempting to leave your annual tax return to the last minute, but compliance is always smoother if you prepare throughout the year. In 2025, the company tax rate remains at 25% for base rate entities with turnover under $50 million, so planning ahead ensures you make the most of deductions and tax timing opportunities. For Trusts, distribution resolutions must be signed before 30 June to be effective — leaving this too late can lead to unwanted tax consequences. Company directors should also remember that they remain personally responsible for ensuring tax returns are lodged and debts are paid, even if they delegate the work to others. A practical way to stay prepared is by keeping digital copies of all invoices, receipts, and contracts. The ATO is increasingly moving away from accepting “bank statement only” evidence, so proper record-keeping isn’t just good practice — it’s essential for protecting your business in the event of an audit.

Workplace Compliance and Fair Work Obligations

The Fair Work Ombudsman has increased audits in 2025, particularly in industries like hospitality, construction, and retail. Underpayments can quickly spiral into costly disputes.

• Minimum wage updates: Each July, minimum wage and award rates change. Payroll systems must be updated accordingly.
• Record-keeping: Timesheets, payslips, and leave records must be accurate and retained.
• Employee entitlements: Misclassifying staff as contractors remains a hot-button issue.

Tip: Conduct an annual payroll audit — it’s cheaper to identify issues yourself than face a Fair Work investigation.

Insurance and Risk Management

Compliance isn’t just about tax and payroll — it’s also about protecting your business against unexpected risks.

• Workers’ compensation: Mandatory in most states once you employ staff.
• Public liability: Protects against accidents or damage caused by your business.
• Cyber insurance: Growing in importance as small businesses are frequent targets of scams and data breaches.

Tip: Review your insurance policies annually to ensure coverage reflects your current business activities.

Staying on Top of ASIC Compliance

ASIC compliance often catches business owners off guard. Every company must pay the annual review fee on time and keep ASIC records, including the registered office address, up to date. Each year, countless businesses face penalties or even risk losing their company registration simply because letters are sent to an old address and go unnoticed. A simple solution is to appoint your accountant as your ASIC agent and use their office as your registered address. This ensures important notices aren’t missed and that compliance, including resolutions when required, is managed properly.

What’s Next

Staying compliant in 2025 isn’t just about ticking boxes for the ATO or ASIC — it’s about running a business that is sustainable, trusted, and positioned for growth. Falling behind in compliance can create unnecessary stress and financial setbacks. On the other hand, getting it right frees up your energy to focus on what matters most: building your business.

If you’d like a tailored compliance review or support in managing your business obligations, the team at Investax can help. We work closely with small business owners across industries to simplify compliance, reduce risk, and ensure you never miss a deadline.

We offer a 15-minute free consultation to discuss your tax, property investment and business needs. Book your complimentary consultation now.

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