Navigating Australia’s 2025 regulatory changes: A guide for SMEs

The year 2025 brings significant regulatory changes that will affect Australian small and medium businesses (SMEs). From employment law to cybersecurity and environmental obligations, the compliance landscape is shifting rapidly. Understanding these changes—and preparing for them now—will help business owners avoid penalties, protect their reputations, and stay competitive.

1. Criminal penalties for wage underpayment

From July 2025, wage underpayment moves from a civil matter to a criminal offence. Business owners could face fines up to $7.5 million or even 10 years’ jail for serious breaches. A voluntary compliance code is available for those who proactively audit and correct payroll practices, offering some legal protection.

For SMEs, this means it’s essential to:

Audit wage and award compliance now.
Keep detailed payroll records.
Train managers on correct classifications and overtime rules.

2. Right-to-disconnect laws

Also coming in August 2025 is the extension of “right-to-disconnect” laws to smaller businesses. These laws prevent employees from being penalized for ignoring work communications outside of reasonable hours.

The challenge for SMEs will be defining “reasonable.” Employers should:

Set clear expectations in employment contracts.
Use scheduling tools to manage out-of-hours communication.
Consider flexible work arrangements that respect employee boundaries.

3. Cybersecurity reporting requirements

Cybersecurity remains a top risk. Proposed legislation may require businesses to report ransomware payments within 72 hours, with penalties of up to $20,000 for failing to comply.

SMEs should:

Create an incident response plan.
Regularly back up critical data.
Train staff to identify phishing and other cyber threats.

4. Climate reporting obligations

From 2026, SMEs supplying larger companies may be required to report scope 3 emissions (indirect emissions from their value chain). While this isn’t immediate, it highlights the growing importance of environmental accountability.

Businesses can prepare by:

Tracking energy and supply chain emissions now.
Exploring partnerships with low-carbon suppliers.
Considering emissions reduction as part of long-term planning.

Why these changes matter

Small businesses often lack dedicated HR or compliance teams. By acting early, SMEs can spread the cost and workload of compliance rather than scrambling when laws take effect.

Practical steps for SMEs

Conduct a compliance audit across wages, work hours, data security, and environmental impact.
Invest in training for managers and staff on new legal obligations.
Leverage technology for payroll, time tracking, and cybersecurity monitoring.
Engage advisors early—accountants, lawyers, or HR consultants can save time and money.

These regulatory changes aren’t just red tape; they reflect broader shifts in workplace culture, data security, and environmental responsibility. Businesses that adapt early will be better positioned to build trust with employees, customers, and partners.

EXCITING NEWS

The search for ways to help YOU succeed has to be relentless otherwise it will never be found!

To that end, we have begun planning for our next Global Business Camp to be held in February 2027, again on Queensland’s Gold Coast.

Keep your eyes on our website for more details in the coming months about final dates, venue and registration options.

And if you are a business that would like to get your brand in front of 160+ small to medium businesses, give us a call on (08) 8423 6177 or email graeme@globalbusinesscamps.com.au so we can provide further details.