Changes for casual employees

Dave Adams • January 15, 2019

Businesses that engage employees on a casual basis need to be aware of a decision the Fair Work Commission made last year that is creating a shift in the casual employment landscape.

From 1 October 2018, many additional Modern Awards had a clause inserted that allows casual employees the right to request to convert to full-time or part-time employment.

Why is this happening?
In July 2017 the Fair Work Commission first put into play the notion to support and protect employees from the detriments of casual work, like not being offered training opportunities and financial challenges causals face such as such as difficulty securing loans. There are however some benefits for employers too.

It might seem like yet another piece of paperwork employers have to do, more hoops to jump through, but, the general idea behind these changes, also brings some clarity for employers.

If you read my article in BMO’s “every step” magazine (link), you’ll be aware that there have been some rulings where casual employees are being granted entitlements because they are deemed to be carrying out the work as though they are a part-time or full-time employee. So instead of this grey area, Fair Work is telling employers they have to give their employees the information so that every employee has an opportunity to clarify, and confirm in writing, the basis of their engagement.

It should, in theory, prevent causal employees from double dipping ie. Getting a higher hourly rate but then also being awarded entitlements down the track.

In line with this clause being inserted into awards that previously did not have them, there is a requirement for an employer to provide new and existing employees a copy of the Award Casual Conversion Clause. The employee can then check it all out and if they decide they’d like to request to be converted to part-time or full-time. If they wish to, then they must request as such in writing. The employer can then accept or refuse the request. The Awards provide a raft of considerations as to why the employer may or may not choose to accept the request.

So if you’re an employer – what do you have to do?
As an employer, under certain awards, you are required to provide every eligible award-reliant casual employee with copy of the Award Casual Conversion Clause. Many of our local businesses are affected including pastoral workers (ie farming), hairdressers, retailers, insurance, clerical, long distance transport, the fitness industry and more. Actually, there are about 1.5 million casual employees in Australia this applies to, so it’s worth checking if it’s included in your award. More info here>>

What’s the timing?
For any eligible award-reliant casual employees engaged after 1 October 2018 this is to be done within their first 12 months of employment, for employees engaged before that date there was a requirement for this information to be provided by 1 January 2019.

In the busy-ness of Christmas and end of year, it’s possible that many employers have missed this deadline. If you haven’t done it yet, best get to it!

If you’ve checked your award and if the decision does apply to your casual employees, and you have not provided notification yet, and you don’t know what to do…..please contact me and we can provide you with further information. If you’ve had an employee provide a written request, you can also talk with us about what to consider before you accept or refuse the request. If you have any further queries about this decision and how it affects your business please give me a call.

 

This article is general in nature. Before making any financial or investment decisions, we recommend you consult your accountant or HR adviser to take into account your particular financial objectives, financial situation, business and individual needs. BMO Accountants does not accept any liability for any errors or omissions of information supplied in this article.

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Do you know how your super is performing?

By Nikki Ashurst • November 2, 2026
Many Australians don't know how their super fund has performed or what it invests in. Are you one of them? Here's what to check and why it matters. Do you know how your super fund performed over the last two years? Many Australians don’t and are working towards their financial future without fully understanding one of their most important assets and without a clear plan for how their super may support them in retirement. That's not surprising, as many people view super as something that should run quietly in the background while they're busy with careers, families and everything else that life throws at them. But when you’re not sure what’s happening behind your balance, it’s harder to know whether you’re on track, whether your current approach reflects your goals or what opportunities might be available to help you make the most of what you’ve built so far. Your super isn't sitting in an account, it's invested Super is invested by a fund on your behalf across a mix of assets, with those investments working to grow your balance over time. Those include: Shares Ownership in Australian and international publicly listed companies. Their value can rise and fall, sometimes substantially over short periods but shares can provide capital growth over the long term. Property and infrastructure Real assets like office buildings, shopping centres, airports and energy networks. They can produce income and don't always behave in the same way as share markets, helping diversify investment holdings. Fixed interest and bonds Lending to governments and companies in return for interest. They can provide regular income and be steadier than shares, although returns and risk vary depending on the investment. Cash Generally, the most stable and lowest risk investment type. It can provide stability and faster access to money but typically offers lower longer term return potential. The investment option you choose determines the mix of assets held in your super based on your risk appetite. Most super funds offer options from conservative to high growth. If you’re young, a growth option with a higher exposure to growth assets like shares could offer higher returns over time – but it also comes with higher risk. As retirement nears, you might want to consider a more conservative approach with more defensive assets, like bonds for example to protect your savings. If you've never made a choice, you're probably in your fund's default option, which is designed to suit a broad membership. It’s worth knowing whether the mix you're in matches your circumstances and goals, including how far you are from retirement. Why performance alone is not a true comparison If you're thinking about how your super compares, returns are often where people start. The trouble is that a return figure means nothing without context: What it's being compared to Growth and conservative options invest differently and with different levels of risk. Compare like with like or the comparison may not be genuine. The comparison period A single year can be heavily influenced by short term market conditions. Super is measured in decades, so five, seven and ten year returns tell you far more about whether a fund is consistently doing its job, albeit not a predictor of future performance. Fees and tax Published returns should reflect investment fees, costs and tax but administration fees may be charged separately from your balance. Two funds quoting the same return can leave you in meaningfully different places once all fees are accounted for. Then there are the things that returns can't show you at all. For example, what insurance is attached to your account and what it's costing you, whether the fund offers guidance, tools and advice or simply sends a statement once a year. Another consideration maybe the level of support available when you need it. When comparing funds, it's worth looking at the full picture, including performance, fees, investment options, retirement support and member benefits. What today’s decisions mean tomorrow To understand how your super stacks up, start here: Find your investment option It's on your annual statement and in your online account. Look at what's in it Your fund publishes the asset allocation (shares, cash etc.) for each investment option. Check the long-term return for that option Focus on five and ten year returns, not just last year and compare them with equivalent options. Understand the total cost Add together administration fees, investment fees and insurance premiums as an annual dollar figure. Comparing super is about working out which option will perform best for you. Before you jump in, it’s worth understanding what's behind the numbers so you can make decisions based on more than a headline return. Knowing where you stand is the first step A super balance tells you where you are today. Understanding how your super is invested, how it compares and whether it's aligned with your goals helps show whether you're heading in the right direction. Source: MLC The information in this article does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Capstone Financial Planning nor their directors, employees or authorised representatives gives any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document. Principal Wealth Management Pty Ltd trading as BMO Financial Solutions ABN 53 109 336 601 is a Corporate Authorised Representative (CAR 277821) of Capstone Financial Planning Pty Ltd ABN 24 093 733 969 Australian Financial Services Licence (AFSL) No. 223135.

The SMSF landscape is changing

By Jude Schofield • October 7, 2026
More Australians are choosing to take direct control of their retirement savings by establishing a self-managed super fund (SMSF) and according to the SMSF Association, Aussies now see their super as an important part of building and managing their overall wealth.