A new financial year, a new hiring landscape

As the 2025–26 financial year kicks off, Australian employers are navigating a mix of regulatory updates, economic pressures, and shifting workforce behaviours.

According to the Australian Taxation Office, recent updates from the Tax Practitioner Stewardship Group (TPSG) highlight key changes in reporting obligations and compliance expectations for businesses. These updates are especially relevant for employers managing multiple contractors, hybrid teams, or high turnover.

The rise of multi-job workers and side hustles

One of the most notable workforce trends heading into FY2025–26 is the surge in Australians working multiple jobs. Nearly one million people now juggle two or more roles, driven by inflation and cost-of-living pressures. For employers, this means:

• Greater competition for talent: Skilled workers may split their time across employers, making retention harder.

• Payroll complexity: Employers must ensure accurate reporting for part-time, casual, and contract workers.

• Compliance risks: The ATO has warned that side hustlers and gig workers must understand their tax obligations.

If your business relies on flexible or freelance talent, now is the time to review your onboarding, payroll, and reporting systems.

What employers should prioritise this tax season

1. Review your workforce structure

Are you relying heavily on contractors or casuals? Make sure your classification aligns with ATO guidelines. Misclassification can lead to penalties and back payments.

2. Audit your payroll systems

Ensure your Single Touch Payroll (STP) reporting is accurate and up to date. The ATO is increasing scrutiny on mismatches between payroll and tax lodgements.

3. Plan for retention and upskilling

With more workers seeking flexibility and financial stability, offering career development and hybrid work options can help you retain top talent.

4. Budget for workforce growth

Tax time is a great moment to align your hiring plans with your financial forecasts. Consider whether your current team structure supports your goals for the next 12 months.

Real-world example: How employers are responding to workforce changes

In July 2025, Telstra announced plans to cut 550 roles as part of a major restructure aimed at simplifying operations and improving productivity. While the company clarified the cuts weren’t due to AI, the move highlights how large employers are reassessing workforce structures to stay competitive and compliant in a changing economy.

This kind of strategic workforce review, especially at the start of the financial year, is something SMEs can learn from. Whether it’s reducing reliance on casuals, improving internal systems, or realigning roles, now is the time to plan smarter.

Turning tax time into a strategic advantage

As the new financial year unfolds, employers have a unique opportunity to do more than just meet compliance requirements-they can use this moment to recalibrate, refocus, and realign their workforce strategies. Whether it's refining payroll systems, planning for growth, or adapting to the rise of multi-job workers, tax time 2025 offers a timely checkpoint to future-proof your hiring approach.

Need help navigating hiring and workforce planning this financial year?
Partner with MTC Recruitment to access expert support and top-tier talent. From compliance to onboarding, we help you build teams that deliver.