Updated

Updated · allens.com.au · Jul 14

Australian Court Awards $50,000 in First Sexual Harassment Ruling Under 2023 Fair Work Changes

Updated

Updated · allens.com.au · Jul 14

Australian Court Awards $50,000 in First Sexual Harassment Ruling Under 2023 Fair Work Changes

Q: With 'Payday Super' now law, what is the one mistake that could trigger a crippling ATO audit for Australian businesses?

The biggest audit trigger under Payday Super is underpaying super because the business is still using the old earnings base or otherwise miscalculating the new, broader “qualifying earnings.” That is the high-risk error because from July 1, 2026, employers must pay Super Guarantee each pay cycle and report year-to-date qualifying earnings and super liability through Single Touch Payroll. The ATO can now compare what payroll says should have been paid with what super funds actually receive in near real time. If an employer leaves out items now captured in qualifying earnings, such as some commissions, salary-sacrificed amounts or payments to certain labour-hire contractors, the mismatch is visible quickly. The compliance danger is compounded if the business also treats “payment sent” as compliance. Under Payday Super, the practical test is whether the contribution reaches and is allocable by the fund within seven business days of payday. Clearing-house delays do not shift liability away from the employer. Repeated late or unresolved shortfalls are exactly the kind of pattern the ATO has flagged for early enforcement attention in 2026-27. That makes the most damaging mistake not just a late payment in isolation, but a systemic payroll setup failure: calculating super on the wrong earnings base and then missing the new receipt deadline. That combination can trigger Super Guarantee Charge liabilities, non-deductible penalties, and a full ATO review.

3 articles · Updated · allens.com.au · Jul 14

$50,000 in non-economic damages and $9,390 in penalties were awarded after the Federal Circuit and Family Court’s first judgment under Australia’s new workplace sexual harassment provisions.
The case stemmed from a 29 June 2024 incident at a café, where the owner pinned a casual waitress’s arms, waved money at her and kissed her after she raised underpayment concerns.
The court said the conduct was severe because the worker was young, a recent migrant and financially vulnerable, while the owner held authority over her and showed limited genuine remorse.
The ruling highlights that workers can seek compensation directly from individual perpetrators — and potentially employers involved in a contravention — under the 2023 Fair Work Act amendments.
Those provisions, introduced after the 2020 Respect@Work inquiry, broaden protections against sexual harassment connected with work and mark a new test of workplace risk for employers.