GOING UP! A new financial year means a set of new numbers for employers
Here's a snapshot of some important changes that take effect from toDAY, 1 July 2025
The national minimum wage increases by 3.5% to $948.00 per week or $24.95 per hour (before statutory superannuation).
Minimum award wages and allowances in modern awards increase by 3.5%, rounded to the nearest 10 cents (before statutory superannuation) (updated award schedules have now been published).
Statutory superannuation contribution for employers increases from 11.5% to 12%.
The high income threshold for unfair dismissal claims increases to $183,100 per annum (up from $175,000) and the maximum compensation limit also increases to $91,550.
Why does it matter?
Failure to comply with the changes could result in underpayment claims, award breaches, prosecution, and/or fines imposed on your business and its directors.
Additionally, employees earning above the high-income threshold are exempt from making an unfair dismissal claim, subject to a modern award applying to them (but they may still be eligible to bring unlawful termination claims, and general protections claims).
What do employers need to do?
Employers must adjust their payroll systems to ensure they are compliant with the changes.
It is also critical to review wage costs and plan for the financial year ahead.
How we can help
Below are the key areas where we can assist you and your clients:
If a business currently pays above award wages, we can advise whether any increase can be absorbed into any existing above award arrangement and/or review your employment contracts to deal with these changes in the future, to ensure compliance by your business.
We can undertake a review of your workforce to ensure your business is compliant in respect to any award-covered and award-free employees.
We can provide advice and representation at the Fair Work Commission or the Fair Work Ombudsman on behalf of your business, should you be served with any underpayment claim, workplace complaint or any other dismissal-related claim.
Please contact us should you wish to discuss any of the above changes, or require assistance.
The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.
contact
Dean Schubert
Partner
E dxs@bwslawyers.com.au
P 02 9394 1048
Annette Pabla
Senior Lawyer
E anp@bwslawyers.com.au
P 02 9394 1029