SME Risk and Compliance
There is no Risk and Compliance information worth sharing this week
There is more information on SME Risk and Compliance at the Inspiring Business website link here
Non-lodgment prosecutions jump 80 per cent, Queensland leads the nation
The ATO announced on 17 September 2026 that it had prosecuted more than 350 individuals and entities for non-lodgment over two years, an increase of more than 80 per cent, producing more than 305 convictions and fines exceeding $2.7 million. Queensland recorded 28 per cent of successful prosecutions, ahead of Western Australia at 26 per cent and New South Wales at 20 per cent. The ATO named tradies, hairdressers and cafe operators as examples and warned that deliberate non-lodgment now carries criminal conviction risk, not just penalties.
Implications - The owner should confirm that every entity in the group, including the company, the trust and any dormant entities, is current on income tax, BAS and TFN reporting. Where lodgments are behind, engage the tax agent to bring them up to date and use the ATO's payment arrangement options rather than leaving returns unlodged. A conviction attaches to the director personally, so this is a director risk, not a bookkeeping task.
Read more about this topic at the ATO media release: Out of the shadows link here
Repeated in the Technology and Innovation section
Repeated in the Family Business Succession and Exitability section
ATO and Fair Work Ombudsman step up action on sham contracting
As at mid September 2026 the ATO and the Fair Work Ombudsman are jointly intensifying enforcement against sham contracting, where a worker who is in substance an employee is engaged as an independent contractor. Misclassification exposes the business to back paid PAYG withholding, unpaid superannuation guarantee, penalties and wage back payments. The two agencies share data, so a single classification problem can surface as both a tax debt and a workplace claim.
Implications - The owner should review every subcontractor and ABN worker against the current employee versus contractor tests, looking at control, who supplies tools and vehicles, and whether the person works predominantly for this business. Where a worker looks like an employee, correct the arrangement and factor the unpaid superannuation into cash flow. Keep written contracts in place, but understand that the substance of the relationship overrides the label on the paperwork.
Read more about this topic at the Fair Work Ombudsman: Sham contracting link here
Repeated in the People and Culture section
WHSQ targeted trade compliance campaign
Workplace Health and Safety Queensland announced an ongoing statewide compliance campaign targeting trade licence holders, assessors and active job site safety management. Inspectors are examining high risk work licences, induction cards and mandatory site documentation.
Implications -The Operations Manager on SE QLD job sites must verify that all frontline workers and subcontractors hold current high risk work licences and general construction induction cards, the White Card. Ensure site risk assessments and licence registers are current and displayed at site entry points.
Read more about this topic at the WorkSafe Queensland: Construction at heights link here
Also the February announcement relating to High-risk work licenses fraud alert
Queensland Electrical Safety Regulation 2026 commences
The remade Electrical Safety Regulation 2026 came into operation in Queensland, setting out the legal standards and prescribed duties for electrical safety compliance across workplaces. The regulation updates the compliance pathways for workplace equipment testing, contractor oversight and high risk electrical work.
Implications - SE QLD Business Managers must review workplace electrical safety logs, check that tag and test registers for commercial tools and equipment are up to date, and confirm that external electrical maintenance contractors hold active state licences.
Read more about this topic at the WorkSafe Queensland: Electrical Safety Regulation 2026 link here
Payday Super timetable and payroll clearing requirements
The ATO published compliance guidance on Payday Super readiness, reminding employers that superannuation contributions must be paid alongside salary and wages within a seven business day window. The ATO stressed that payroll data quality must be corrected now to prevent rejected clearing house transactions.
Implications - he Payroll Manager must audit employee clearing house profiles and confirm that every Unique Superannuation Identifier and member number is accurate. Test whether the payroll system can process superannuation payments aligned directly to weekly or fortnightly pay runs rather than quarterly.
Read more about this topic at the ATO Small Business Newsroom: Why data quality matters for Payday Super link here
Repeated in the People and Culture section
