As of 1 July 2025, several significant changes to employment laws and entitlements have come into effect across Australia. These updates impact wages, superannuation, parental leave, and workplace rights. Employers must understand and implement these changes to ensure compliance and support their workforce effectively.
1. Minimum Wage and Award Rate Increases
The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and modern award minimum wages.
- New National Minimum Wage: $948 per week or $24.95 per hour.
Action for Employers:
- Review and update payroll systems to reflect the new wage rates.
- Ensure all employees are paid at or above the updated minimum wage applicable to their role and industry.
2. Superannuation Guarantee Rate Increase
The Superannuation Guarantee (SG) rate has increased from 11.5% to 12%.
Action for Employers:
- Adjust payroll systems to calculate superannuation contributions at the new rate.
- Communicate the change to employees, highlighting the benefits of increased retirement savings.
3. Paid Parental Leave Enhancements
The Paid Parental Leave scheme has been expanded to provide greater flexibility and support for working parents. Key changes include:
- An increase in the total number of weeks available.
- The ability for parents to take leave in blocks, rather than a continuous period.
- Introduction of superannuation contributions during the paid leave period.
Action for Employers:
- Update parental leave policies to align with the new scheme.
- Inform employees about their enhanced entitlements and support them in planning their leave.
4. Right to Disconnect
Currently, only large businesses are required to comply with the new “right to disconnect” provisions. However, from August 26, 2025, these obligations will extend to all employers, including small businesses with fewer than 15 employees.
Under these new laws, employees will have a legal right to disconnect from work outside of their standard hours. This means they can refuse to monitor, read, or respond to work communications — including calls, emails, or messages — during non-working hours, unless the refusal is unreasonable.
The law recognises that occasional contact outside hours may be necessary in some roles, but employers must show that any such expectation is reasonable and justifiable.
Action for Employers:
- Develop clear policies outlining expectations around after-hours communication.
- Train managers to respect employees’ boundaries and promote a healthy work-life balance.
Need Assistance?
Navigating these changes can be complex, but Business 360 is here to help. Our team can assist you in reviewing and updating your HR policies, ensuring compliance, and supporting your employees through these transitions.
📞 Contact us at 1300 287 360
📧 Email: info@business360.au
