While millions of businesses are busy preparing for the end of the financial year, experts are warning companies they have other liabilities to worry about – the raft of new legislation that comes into effect on July 1.
A range of legislation including paid parental leave, new minimum wage requirements and even sexual harassment protection obligations will be introduced on Friday, and experts say many companies aren't prepared.
Hall & Wilcox partner Alison Baker says many businesses are not leaving enough time to become compliant with the new rules.
"Many employers will need to get cracking and get the right advice about the paid parental leave obligations. There's not much time left," she warns.
Here are the biggest new legislative requirements businesses will face:
Paid parental leave
While the paid parental leave scheme was actually introduced at the beginning of this year, it was only the beginning of a two-phase introduction. While the first six months of the year allowed companies to voluntarily make payments to employees, after July 1 they will be required to do so.
Employers' obligations under the new scheme will see them mandatorily pay employees government-funded parental leave for 18 weeks. Baker says PPL schemes need to be in place, and any existing parental schemes they have also need to be paid.
"Mainly these companies just need to make sure these processes are in place, and make sure they know how their own schemes are going to interact with the government's system."
"I'm finding a lot of my clients are getting material together for their staff as well, giving them information on what everything's about and directing them to the Family Assistance Office for any questions."
Baker says preparing for these requirements is paramount, especially as these payments will soon become mandatory.
"There are still a lot of companies that think it's something they won't have to deal with and are just burying their head in the sand. The reality is, they will have to deal with this."
Minimum wage hikes
On June 3, Fair Work Australia awarded a $19.40 per week increase on the minimum wage, effective from July 1. Businesses will need to ensure they meet all necessary pay requirements and update their payroll schedules to ensure employees are not underpaid.
Victorian Equal Opportunity Act
The new Victorian Equal Opportunity Act will affect all companies in the state from August 1 this year. While the previous laws operated under more of a reactive scheme, with companies responding to individual claims, Baker says the new laws will see them take a more proactive stance against harassment and discrimination.
According to the Australian Industry Group, the changes will mean employers have "positive duties" to help stamp out discrimination and sexual harassment. The Victorian Equal Opportunity and Human Rights Commission will also be given powers to investigate serious harassment and victimisation cases.
"There will be more obligations on employers to ensure there is no discrimination," Baker says. "You need to have policies in place now, and educating your staff is important.
"There needs to be education, [and] lots of workplace training. Personally I've run seminars where I go through what workplace harassment is, what can be done about it, and so on. It's quite topical for businesses at the moment."
NFP taxation
Laws introduced as part of the 2011 budget will also change how not-for-profit entities will be taxed. The new laws will tax income derived from "commercial activities" beginning after 7.30pm that are not directed back into the "altruistic work" of the group.
Minter Ellison has warned that NFPs should be proactive in reviewing their constituent documents.
"NFP entities should also review the extent and purpose of their commercial activities. Some NFP entities may need to consider structuring options to preserve tax concessions to which they are currently entitled."
However, the company warns the new laws are not designed to affect small-scale activities, such as minor fund-raising activities including fetes and chocolate drives.
R&D legislation
CPA Australia spokesman Paul Drum says companies need to be aware if they are eligible for the new R&D legislation, which will come into effect this Friday. The new laws will provide refundable tax credits to businesses undergoing R&D, including developing software. More information on the credit is available at the AusIndustry website.
Flood levy
One of the most hotly-contested issues of the year is about to come into play – the flood levy. Whether you like or not, the levy will be applicable from July 1 and businesses need to ensure they're taxing everyone the right amount.
For more information on the flood levy, which is applicable to people earning more than $50,000, and for details on how the issue should be addressed by employers, the Australian Tax Office has more details available online.
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