[et_pb_section fb_built=”1″ _builder_version=”4.16″ da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row column_structure=”1_3,2_3″ _builder_version=”4.23″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” width=”100%” custom_padding=”||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ module_class=”table-contents” _builder_version=”4.23″ background_color=”#f3f2f6″ custom_padding=”25px||25px||true|false” sticky_position=”top” sticky_limit_bottom=”section” sticky_position_tablet=”top” sticky_position_phone=”none” sticky_position_last_edited=”on|desktop” pac_dcm_carousel_specific_module_num=”0″ border_radii=”on|24px|24px|24px|24px” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.23″ text_font=”||||||||” global_colors_info=”{}” background__hover_enabled=”on|desktop”][\/et_pb_text][\/et_pb_column][et_pb_column type=”2_3″ _builder_version=”4.16″ custom_padding=”|||” pac_dcm_carousel_specific_module_num=”0″ global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Intro” _builder_version=”4.27.4″ header_2_font_size=”32px” custom_margin=”||0px|||” header_2_font_size_tablet=”30px” header_2_font_size_phone=”26px” header_2_font_size_last_edited=”on|tablet” global_colors_info=”{}”]<\/p>\n
The ATO has released its Vulnerability Framework<\/a> to the public. The framework is a set of principles that define the ATO\u2019s approach to collecting taxes and how it treats vulnerable people. For businesses, this means that the ATO has a code of conduct to help those experiencing hardship, enabling them to meet their tax obligations.<\/p>\n The Vulnerability Framework serves as a guiding practice for the ATO. Essentially, it\u2019s a code of conduct for ATO staff to follow when engaging with the public and businesses. Where people and businesses are vulnerable or have been experiencing hardship, the ATO makes it clear that its conduct will take their circumstances into account.<\/p>\n The principles of the Vulnerability Framework are:<\/p>\n But what is \u2018vulnerability\u2019, as defined by the ATO?<\/p>\n \u201cA person experiencing vulnerability is an individual who faces an increased risk of harm, exploitation, exclusion, or isolation. This can be due to various factors, including, but not limited to, social, economic, environmental, physical or mental health conditions, disability, age, lack of access to essential services, mistreatment, abuse, or other personal circumstances.\u201d<\/em><\/p>\n Australian Taxation Office, Vulnerability Framework<\/strong><\/p>\n By the ATO\u2019s definition, vulnerability is broad by design to capture mitigating circumstances that affect a person or business’s ability to address their tax obligations. To put this into perspective, consider the following example.<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Scenario” _builder_version=”4.27.4″ _module_preset=”default” text_text_color=”#0a004a” background_color=”#eeecff” custom_margin=”30px||||false|false” custom_padding=”30px|30px|30px|30px|false|false” border_radii=”on|20px|20px|20px|20px” box_shadow_style=”preset2″ locked=”off” global_colors_info=”{}”]<\/p>\n John owns a lawnmowing business operating in multiple suburbs in Sydney. His turnover<\/a> is just under $300,000, and he lodges his BAS submissions<\/a> every quarter.<\/p>\n Recently, John has been recovering from a workplace accident. This has caused him to pause his work and rehab for his injury. During this time, he has been behind on his tax obligations, like submitting his quarterly BAS. The ATO contacted John and, upon being informed about his accident, granted him a four-week extension.<\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”]<\/p>\n This is just one example, but it illustrates that, while the ATO is still holding John to his tax obligations, it is aware of his condition and willing to accommodate him.<\/p>\n While the framework helps the ATO consider individual and business circumstances, its primary focus is still on collecting taxes and reminding taxpayers of their obligations. What the framework does is influence the ATO\u2019s approach to collecting taxes by providing:<\/p>\n When applying this framework, the ATO will use a three-step action plan to assist those in hardship:<\/p>\n Prevention and early engagement<\/strong> Response<\/strong> Re-engagement<\/strong> The ATO\u2019s Vulnerability Framework is designed to assist people and businesses experiencing hardship. While taxes are an obligation for everyone, the ability to meet them doesn\u2019t need to be an obstacle in and of itself. This is the purpose of the ATO\u2019s framework.<\/p>\n If you are experiencing hardship, there are avenues that you can take to lessen the burden of meeting your obligations. For any assistance needed, contact the ATO<\/a>.<\/p>\n [\/et_pb_text][ba_social_share icon_bg=”#03002e” icon_padding=”10px|12px|10px|12px|true|true” layout=”classic” show_text=”off” btn_padding=”0px|0px|0px|0px|false|false” btn_bg_color=”RGBA(255,255,255,0)” _builder_version=”4.23″ _module_preset=”default” custom_margin=”50px||||false|false” custom_padding=”25px||||false|false” custom_css_before=” content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;” border_width_top_main=”1px” border_color_top_main=”#e4e4e4″ border_radii_icon=”on|5px|5px|5px|5px” global_colors_info=”{}” custom_css_before_last_edited=”off|desktop”][ba_social_share_child _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”facebook” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”linkedin” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][ba_social_share_child network_type=”email” _builder_version=”4.23″ _module_preset=”default” global_colors_info=”{}”][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" The ATO has released its Vulnerability Framework to the public. Discover what it is and what it means for your small business.<\/p>\n","protected":false},"author":36,"featured_media":298569,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p> This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p> Let\u2019s go through it.<\/p> The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p> Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p> Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p> Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p> The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p> The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p> The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p> The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p> If you are unsure about the definition of casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p> The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p> Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p> Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote> In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p> Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p> After a consultation, the employer can accept or reject the notice of employment change.<\/p> When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p> When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p> Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p> Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p> Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p> As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for managing your staff<\/a>.<\/p> You may find that the new process has new opportunities for dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[344],"tags":[],"class_list":["post-298550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nWhat is the Vulnerability Framework<\/h2>\n
\n
Vulnerability defined by the ATO<\/h3>\n
Example<\/h4>\n
Vulnerability Framework: How it works<\/h2>\n
\n
The ATO looks to minimise the barriers that vulnerable people face when it comes to their tax obligations. By working with government and non-government entities, the ATO will provide resources to help taxpayers.<\/p>\n
The ATO will tailor their approach in response to any circumstance that justifies it, providing flexibility and assistance to manage the impact of tax matters.<\/p>\n
The ATO will support taxpayers through the tax system, making sure that their requirements are met. This includes debt matters, penalties, and interest.<\/p>\nThe Vulnerability Framework and your business<\/h2>\n
Key changes to casual employment rights<\/h2>
Who is affected by the employee choice pathway?<\/h2>
The process involved<\/h2>
Defining casual employment<\/h3>
Giving notice of employment change<\/h3>
Responding to a notice<\/h3>
Accepting or rejecting an employment change notice from an employee<\/h3>
What happens if there is an employment dispute?<\/h2>
The bottom line<\/h2>