The Cost of Australia’s New Workplace Laws; Small and Medium Sized Businesses
- Tim Dive
- Mar 14
- 4 min read
If you’re running a small or medium business in Australia, you’ve likely felt the ripple effects (or tidal waves) of the sweeping industrial relations reforms introduced since the current government came into power.
The legislative landscape has shifted dramatically. As the rules have changed, so too have your obligations, risks, and costs.
In this post, we’re unpacking the real-world impacts of these laws on businesses employing between 1 and 50 people. We’ll take a clear-eyed look at the additional compliance burden, administrative time, and estimated costs facing businesses like yours, and what it all means for your bottom line.
Why This Matters to You
97% of Australian businesses employ between 0 and 200 people.
The bulk of these employing businesses employ fewer than 50 people.
Yet, nearly all of the new laws are adding costs and risks for you.
This post isn’t about politics, it’s about ensuring you, as a business leader, have the facts to make informed decisions for your company, your people, and your future.
The Legislative Changes That Are Driving Up Business Costs and Compliance Time
This article doesn't intend to cover all the changes brought about over the last 3 years, if we did, the dollar figures and the time burden would be simply unreconcilable - still, just the few changes we consider apply huge cost and time burden on every business.
1. Award Wage Increases and EBA Adjustments
Estimated Additional Annual Cost: $5,000 to $50,000
Admin Time Required: 10 to 30 hours per year
What’s Happening?
Continuous increases to award wages and mandated Enterprise Bargaining Agreements (EBAs) have forced businesses to revise contracts, adjust payroll, and manage complex employee communications.
We haven't even calculated all the mini-amendments the Fair Work Commission imposes on SMEs, like changes to temporary shut downs and leave, Family & Domestic Violence Leave, changes to Award model terms and mandatory EBA terms, and so on.. it never ends.
2. Multi-Employer Bargaining Laws
Estimated Additional Annual Cost: $3,000 to $15,000
Admin Time Required: 20 to 50 hours per year
What’s Happening?
This is only the cost and time associated with 'considering' and learning about EBAs - the new laws mean businesses are being compelled to consider engaging in bargaining, even if they never previously had an EBA.
The time and legal costs associated with understanding, preparing for, and potentially negotiating these agreements are significant.
3. Positive Duty to Prevent Sexual Harassment (National)
Estimated Additional Annual Cost: $3,000 to $10,000
Admin Time Required: 25 to 60 hours per year
What’s Happening?
Every business now has a proactive obligation to prevent sexual harassment in the workplace. This includes policies, training, risk assessments, and regular reporting.
4. Sexual Harassment Prevention Plan (QLD – from March 2025)
Estimated Additional Annual Cost: $2,000 to $7,500
Admin Time Required: 20 to 50 hours per year
What’s Happening?
Queensland businesses must now implement a formal written Sexual Harassment Prevention Plan under Work Health and Safety laws. This plan must address risks, controls, and consultation processes.
5. Right to Disconnect
Estimated Additional Annual Cost: $1,000 to $5,000
Admin Time Required: 10 to 25 hours per year
What’s Happening?
New rules require businesses to ensure employees have a “right to disconnect” outside of working hours, prompting the need for updated policies, staff training, and management briefings.
6. Criminalisation of Wage Theft
Estimated Additional Annual Cost: $1,000 to $10,000 (up to $40,000)
Admin Time Required: 20 to 40 hours per audit/check (minimum quarterly checks recommended)
What’s Happening?
Wage theft is now a criminal offence, with directors and owners personally liable. The requirement for regular payroll audits, legal reviews, and system updates is critical.
7. Superannuation on Paid Parental Leave
Estimated Additional Annual Cost: $500 to $5,000
Admin Time Required: 5 to 15 hours per year
What’s Happening?
Employers must now pay superannuation on the government’s paid parental leave scheme, adding another layer of payroll complexity.
8. Ban on Engineered Stone (Construction Industry Specific)
Estimated Additional Annual Cost: $2,000 to $10,000
Admin Time Required: 15 to 30 hours per year
What’s Happening?
For businesses in construction, this impacts procurement, safety processes, PPE, and compliance reporting.
9. Fair Work Ombudsman & Fair Work Commission - Other Compliance Efforts
Estimated Additional Annual Cost: $1,000 to $3,000
Admin Time Required: 10 to 20 hours per year
What’s Happening?
Additional risk and/or reporting requirements are in place, particularly for larger SMBs (100+ employees), with non-compliance attracting penalties.
The Bottom Line: What’s the Real Impact?
Total Additional Annual Cost
Range: $20,000 to $160,000+ per year
(Depending on business size, industry, and level of compliance)
Total Additional Admin Time
Range: 160 to 400+ hours per year
(Equivalent to employing a part-time HR/Compliance officer)
For most SMBs, this time is being absorbed by already-stretched owners, directors, and managers—distracting from core operations and strategy.
What Are the Risks If You Don’t Comply?
Severe Financial Penalties: On-the-spot fines, improvement notices, prohibition orders
Personal Liability for Directors and Managers: Including criminal prosecution for wage theft
Reputation Damage: Exposure in Fair Work reports or media
Increased Union Access and Scrutiny: More power given to unions in your workplace
Operational Disruption: Increased audits and inspections from regulators
How Can You Respond?
Book a Consult with The HR Cartel: We specialise in helping SMBs navigate these changes without breaking the bank.
Download Our Resources: The HR Cartel Members can download or request custom templates, policies, and checklists designed to simplify compliance.
Stay Ahead: We offer up-to-date training and proactive support, keeping your business compliant and your leadership protected.
Final Thoughts
These changes aren’t going away. And while they present challenges, they’re also an opportunity to level up your workplace practices, protect your people, and safeguard your business.
But most of Australia's employing businesses don't have the capacity to do it alone.
We’re here to help you simplify compliance, avoid costly mistakes, and focus on growing your business—while we handle the rest.
👉 Visit The HR Cartel or contact us at 07 5651 0066
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