NSW Audit Reveals Half of Businesses Are Struggling (Should Your Firm Be Reaching Out to Small Businesses?)

Published: November 25, 2024

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An audit conducted by the Fair Work Ombudsman (FWO) reviewed 626 businesses in various parts of Australia, including towns in the mid-western regions like Coonabarabran, Gloucester, Dubbo, Narrabri, Wellington, Moree, and Gunnedah as well as areas on the mid-north coast such as Taree and Port Macquarie. Alarmingly, 48% of these businesses did not fully adhere to workplace regulations. Within the mid-western region specifically, 23% were identified as non-compliant, while a quarter of businesses in the mid-north coast area exhibited inadequate bookkeeping practices.

This audit was initiated as a component of the Fair Work Ombudsman’s education and compliance initiative, aimed at assisting employers in ensuring they adhere to fundamental employment practices. The Workplace and Basics program reviewed wage and time records from randomly chosen businesses across various sectors, particularly focusing on industries that employ a significant number of vulnerable workers, such as migrants, students, and casual employees. Special emphasis was placed on cafes and restaurants, including fast-food establishments. Additionally, other service industry businesses and those within labour supply chains were also deemed suitable for auditing.

FWO Natalia James states, “Companies need to recognize that recent changes in legislation have led to a substantial rise in penalties for serious violations, along with those related to record keeping and payslip compliance.”

BOSS has launched an innovative online bookkeeping service that provides businesses with access to a skilled bookkeeper for at least fifty hours of work each month. This offering is known as the Freedom Service™, allowing clients to pay a fixed fee instead of being charged by the hour. This structure helps firms avoid budget overruns and eliminates write-offs, along with costs associated with annual leave, sick leave, and paid holidays. It truly embodies the concept of freedom!

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This article provides general information only and is not intended as accounting, tax, legal or professional advice. Regulatory requirements and interpretations (including under AASB S2, the Corporations Act, and ASIC guidance) evolve over time. As qualified professionals, you will want to review primary sources, apply your own judgement, and seek specialist guidance if needed before applying this to client work or practice decisions. This disclaimer applies to the Content on this website and does not affect the terms of any separate service agreement or engagement for professional services provided by Back Office Shared Services Pty Ltd (BOSS Outsourced Accounting). Back Office Shared Services Pty Ltd accepts no liability for any reliance on this content.

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