On 1 July 2025, a number of important changes impacting the employment law landscape came into effect. Bronte Jackson, Associate and Ariane Hogno, Graduate set out some of the key changes below.
National Minimum Wage
On and from 1 July 2025, the National Minimum Wage and the national minimum award wages will be increased by 3.5%.
In regard to the National Minimum Wage, this will be increased from $24.10 (or $915.90 per week) to $24.95 per hour (or $948.00 per week).
Employers ought to review the relevant modern awards to confirm the increase(s) in the applicable wages.
Superannuation Guarantee Contribution Rate
On and from 1 July 2025, the superannuation guarantee percentage will increase from 11.5% to 12%. Employers must ensure they pay the minimum amount to avoid the superannuation guarantee charge.
In addition to the above, the:
- maximum superannuation contribution base is decreasing from $65,070.00 to $62,500.00; and
- the maximum superannuation guarantee payment per quarter is increasing from $7,483.05 to $7,500.00.
The new limits mean the maximum superannuation guarantee amount an employer is required to make (on behalf of each employee) is $30,000 per annum.
High Income Threshold – Employees and Contractors
On and from 1 July 2025, the high-income threshold will increase from $175,000.00 to $183,100.00. This new high-income threshold will apply to employee dismissals occurring on or from 1 July 2025.
We confirm the contractor high-income threshold is also $183,100.00.
Compensation for Unfair Dismissal Claims
On and from 1 July 2025, the compensation cap for unfair dismissal claims will increase from $87,500.00 to $91,550.00 (being half the high-income threshold amount). This cap will apply to dismissals occurring on or from 1 July 2025.
Paid Government Parental Leave Pay
On and from 1 July 2025, the paid parental leave available to eligible families (through the Australian Government Parental Leave Pay Scheme) will increase from 22 weeks (or 110 days) to 24 weeks (or 120 days), This will apply to children born or adopted on and from 1 July 2025. Of the available leave, 15 days are reserved for the partner (where applicable).
In addition to the above, the:
- daily rate of payment will increase from $183.16 (or $915.80 per 5-day week) to $189.62 (or $948.10 per 5-day week); and
- the Australian Tax Office will now pay a superannuation contribution (called the Paid Parental Leave Superannuation Contribution) on parental leave pay. The contribution amount will be based on the superannuation guarantee rate.
Tax-Free Limits for Genuine Redundancy Payments
On and from 1 July 2025, the base limit for genuine redundancy payment limits will increase from $12,524.00 to $13,100.00.
The service-related component for genuine redundancy payment limits will also increase from $6,264.00 to $6,552.00.
For more information or assistance with these changes, please contact our employment team.