Making Tax Digital for Income Tax — Quarterly Update Due
Freelance Isn't Free Act: Freelancer Payment Rights
Why this matters.
The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 rewrote the rules on casual employment from 26 August 2024. Under the new section 15A of the Fair Work Act 2009, a person is only a casual employee if there is no firm advance commitment to continuing and indefinite work, and they are entitled to a casual loading or a specific casual rate. Importantly, the test looks at the real substance, practical reality and true nature of the working relationship, not just what the contract says, so a worker on a regular, predictable roster may no longer meet the definition even if their contract calls them casual.
The old system of employer offers for casual conversion has been replaced by an “employee choice” pathway. Casuals who have worked for at least 6 months (12 months for a small business employer with fewer than 15 employees) can notify you that they believe they are no longer casual and want to change to full-time or part-time. You must consult them and respond in writing within 21 days, and can only refuse on specific grounds. Employers must also give casuals the Casual Employment Information Statement (section 125B) at set points. New civil penalty provisions target sham casual arrangements, and misclassifying a permanent employee as casual can leave you exposed to back-pay claims for leave and other entitlements.
