Stay Ahead of Law Changes in 2025
What you need to know as a creative service provider
As a creative service provider running a small business in Australia, staying informed about legal changes that affect your operations is crucial. With several significant modifications to Australian business law coming into effect in 2025, it's important to understand how these changes impact your day-to-day operations and compliance requirements. Here's what you need to know to stay ahead of the curve.
Wage Compliance Gets Serious
Since January 1st this year, intentionally underpaying employees has become a criminal offence. The key word here is "intentional" - but what exactly does that mean in practice?
For small business owners concerned about compliance, the Fair Work website offers a Voluntary Small Business Wage Compliance Code. This resource provides guidance on what constitutes intentional versus unintentional underpayment.
Action steps:
Review all employee wage rates against current award standards
Consult with your accountant to ensure compliance
Document your wage compliance procedures
Check the Fair Work website regularly for updates
Remember, as a business owner, you have a positive obligation to take steps to get this right. The consequences of non-compliance are serious, so prioritise this review.
Privacy Law Overhaul
The privacy legislation in Australia is undergoing significant changes, with many exemptions for small businesses being removed. This means that regardless of your business size, you'll likely need to comply with stricter privacy regulations.
The privacy rules are becoming more stringent about:
What personal data you can collect
How you can use collected data
Where and how you store personal information
Requirements for disclosure to clients
Tougher penalties are being introduced for breaches, making compliance more important than ever.
Action steps:
Review how you collect, use, and store personal data
Ensure you have a compliant privacy policy accessible via your website
Link to your privacy policy in client service terms and consent forms
Consider professional help rather than using generic templates
Right to Disconnect Laws
For small businesses, the Right to Disconnect laws come into effect on August 26, 2025. These laws give employees the legal right to refuse work-related contact outside of hours if the request is unreasonable.
The key concept is "reasonableness," which needs to be assessed case by case. While this might sound vague, the best approach is to be proactive.
Action steps:
Start conversations with your team now about expectations
Develop clear policies around after-hours contact
Update client agreements to establish boundaries around contact hours
Document what constitutes reasonable versus unreasonable contact
Ban on Certain Engineered Stone
For interior designers and those in construction or renovations, there's now a complete ban on importing, manufacturing, supplying, and processing certain types of engineered stone (including some benchtops, panels, and slabs).
Action steps:
Research which specific engineered stone products are banned
Update your material selection processes
Inform clients about these restrictions
Maintain documentation of compliant materials
Unfair Contract Terms Legislation
Although this change came into effect in November 2023, many business owners are still catching up. The legislation allows for entire contracts to be set aside if they contain unfair terms—not just the problematic clauses.
One of the most common issues relates to termination rights. Contracts that don't provide consumers with the right to terminate for no cause are likely to be deemed unfair.
Action steps:
Review termination clauses in all client contracts
Ensure there are both termination for breach and no-cause termination options
Check for other potentially unfair terms that create significant imbalance
Update your client service agreements accordingly
Core Legal Documents Every Creative Business Needs
As a service-based business with a website, you need three essential documents:
Client Service Agreement (the most critical document)
Website Terms and Conditions
Privacy Policy
When updating your offerings, don't automatically assume your existing terms and conditions will suffice. Consult with a business lawyer (aka, me!) to determine if amendments or new documents are needed.
Moving Forward
The legal landscape for small businesses in Australia continues to evolve. Staying informed and proactive about these changes is not just about compliance—it's about building trust with your clients and protecting your business.
Consider surrounding yourself with key professionals who can help navigate these changes: a business lawyer, an accountant, and a bookkeeper are invaluable resources for ensuring your creative business remains legally sound in 2025 and beyond.
By addressing these legal requirements now, you'll be free to focus on what you do best—delivering exceptional creative services to your clients.
If you need help to ensure your business is covered, reach out to us today and book in for your Complimentary Introduction Call here.
