With the new financial year underway, the Fair Work Commission (FWC) has announced its annual updates to workplace and employment laws. Here’s what employers should be aware of regarding these changes.
Increase to the Superannuation Guarantee
From 1 July 2025, the superannuation guarantee will increase to 12%, up from 11.5% in the previous financial year. This marks the final stage of the phased increases to the superannuation guarantee, with the rate expected to remain at 12% until at least 30 June 2028 and beyond.
Increases to the National Minimum Wage and Award Wages
On 16 June 2025, the Fair Work Commission (FWC) announced updates to the National Minimum Wage and Award Wages. The National Minimum Wage will rise to $948.00 per week (or $24.95 per hour), up from $915.90 per week (or $24.10 per hour). Additionally, all minimum award wages will increase by 5%.
Thesechanges take effect from the first full pay period on or after 1 July 2025. Employers covered by enterprise agreements tied to award minimums must ensure their rates align with the updated award minimums to avoid underpayment risks or penalties.
The high-income threshold for unfair dismissal claims will also increase to $183,100.00 from 1 July 2025, with the compensation limit rising to $91,550.00.
Employers should review their obligations under modern awards to remain compliant.
Right to Disconnect
From 26 August 2025, the right to disconnect will apply to small business employers (less than 15 employees).
Eligible employees will have the right to refuse contact outside of their working hours, unless that refusal is considered unreasonable.
Nick Hedges is the founder of Resolve HR, a Sydney-based HR consultancy specialising in providing workplace advice to managers and business owners. He recently published his first book, “Exiting underperforming Team Members – The Inside Scoop”. It is a practical response to the most pressing HR challenges, which can be found at https://resolvehr.com.au/.
Disclaimer: The contents written do not constitute legal advice and do not cater for individual circumstances. The information contained herein is not intended to be a substitute for legal advice and should not be relied upon as such.
