Key Employment & HR Changes in Australia - Effective 1 July 2025
As we commence the new financial year, several significant employment and human resources changes have come into effect across Australia. These updates impact wages, superannuation, parental leave and more. Below is a clear summary to help you stay informed, compliant, and prepared.
Minimum Wage Increase
Effective 1 July 2025, the national minimum wage has increased by 3.5%, raising the hourly rate to $24.95 and the weekly rate to $948 for full-time employees.
This adjustment aligns with the Fair Work Commission's annual wage review and benefits approximately 2.6 million workers nationwide.
Superannuation Guarantee Rise
The Superannuation Guarantee (SG) rate has risen from 11.5% to 12% of ordinary time earnings. This marks the final stage in the government's phased plan to strengthen retirement savings for Australian workers.
Paid Parental Leave Expansion
From 1 July 2025, paid parental leave entitlements have increased to 24 weeks (120 days) for eligible parents of children born or adopted on or after this date. This is part of a staged expansion toward 26 weeks by 2026.
Changes also include:
• An increase in reserved days for the partner (non-primary carer).
• More flexibility for parents to take leave concurrently.
Portable Long Service Leave in NSW
New South Wales has introduced a portable long service leave scheme for eligible community service workers. Employees can now access up to six (6) weeks of paid leave after seven (7) years in the industry, even if they've worked for multiple employers.
Skilled Visa Income Threshold Adjustment
The Temporary Skilled Migration Income Threshold (TSMIT) has increased by 4.6%, in line with Average Weekly Ordinary Time Earnings (AWOTE).
This ensures the skilled migration program remains competitive and aligned with labour market conditions.
So what should Employers do?
To remain compliant and minimise risk:
• Review and update employment contracts
• Adjust payroll systems to reflect new wage and SG rates
• Revise HR policies to reflect updated leave entitlements
Now is the ideal time to assess how these changes impact your business, systems and workforce.
Need help navigating the updates? We provide expert HR advice to keep your business compliant, and your people informed.
For more detailed information or personalised advice, contact us
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