BIG CHANGES FROM JULY RE EMPLOYMENT LAW
Drive by Friday
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Drive by Friday –
Employment Law & Super Updates You Should Know
As of 1 July 2025, several important changes have come into effect that impact the way Australians work, get paid, and plan for retirement. Whether you're an employee, an employer, a contractor, or somewhere in between — this is a quick and clear rundown of the key updates, what they mean, and how they might affect you.
1. Superannuation Guarantee Increased to 12%
Australia’s Super Guarantee rate has officially increased to 12%, up from 11.5%. This is the final step in the government’s plan to gradually boost retirement savings for all workers.
What this means:
Employers now need to contribute 12% of an employee's ordinary time earnings to their super fund.
If you're employed and earning more than $450 per month (and meet other eligibility), this applies to you.
For employers: ensure your payroll system reflects this change from 1 July.
📌 Tip: Check your payslip to ensure your super is being calculated correctly!
2. Paid Parental Leave Now 24 Weeks
Good news for growing families — the government has extended the Paid Parental Leave scheme from 18 weeks to 24 weeks.
What this means:
More time at home with your newborn, while receiving government-funded leave.
Flexible sharing options are available between both parents.
The leave is still income-tested, so check your eligibility on Services Australia.
3. Minimum Wage Increased
From 1 July, the national minimum wage has increased by 3.5%. The new minimum rates are:
$24.95 per hour, or
$948 per week for full-time (38 hours per week) workers.
What this means:
If you’re on an award or the national minimum wage, you should see an increase in your next pay cycle.
Employers should review their payroll systems and update pay rates accordingly.
📌 This increase aims to help workers keep up with cost-of-living pressures.
4. “Same Job, Same Pay” Ruling Sets a Precedent
In a major decision, the Fair Work Commission has ruled in favour of labour-hire workers at BHP-operated mines in Queensland, stating they must be paid the same rate as directly employed workers doing equivalent work.
Why this matters:
It could pave the way for fairer pay for contract and labour-hire workers across many industries.
Employers using labour-hire should assess whether their pay structures comply with this precedent.
5. Tax Changes for High Super Balances
The government is introducing a controversial tax targeting Australians with superannuation balances over $3 million.
The proposed measure includes:
A 15% tax on unrealised capital gains in affected super accounts.
Who is affected:
Less than 1% of Australians, but it has implications for high-wealth individuals and SMSFs (self-managed super funds).
Financial advisors recommend reviewing your super strategy if your balance is close to or above the threshold.
📌 Not sure where you stand? Check your MyGov super portal or speak with a licensed adviser.
QUICK RECAP
Super Guarantee – increased to 12%
Parental Leave – 24 weeks (was 18)
Minimum Wage - $24.95 per hr or $948 per wk
Labour Hire Pay – same job = same pay ruling
Super Tax – proposed for businesses over $3M
AND FINALLY
These changes reflect Australia’s shifting economic and social priorities — from bolstering retirement income to supporting working families and creating fairer workplaces. If you're unsure how these updates affect you, now’s a great time to speak to your employer, HR team, or financial adviser.
Big changes, small print – we’ve got the highlights
Legally speaking, it’s time for a refresh
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