Jim Courtwood
Author of the Time & Attendance Consultant's Guide Series

The new financial year has kicked off and there have been key updates to wages, superannuation, thresholds, and compliance requirements. Here's a comprehensive guide to the changes effective from 1 July 2025 — and what they mean for your business.
Thisis alos a good opportunity to make sure your staff have impemented all the required changes,

💰 1. Superannuation Guarantee Increases 
The superannuation guarantee rate increases from 11.5% to 12%. Max super contribution base: $62,500 per quarter ($250,000 per annum) Employers are not required to contribute on earnings above this threshold 
📌 Action: Review payroll systems and salary packaging to ensure correct super is paid. 

📈 2. Modern Award Wage Increase  3.5% 
All Modern Award minimum rates increase by 3.5%, starting from the first full pay period on or after 1 July 2025. 
Applies to juniors, apprentices, trainees, piece workers, and employees on the supported wage system 
Expense-related allowances (e.g. travel, meals, tools) also increase per CPI or Award formula Annualised salaries must be reviewed to ensure they:  
  • Still absorb all Award entitlements 
  • Meet any reconciliation and notification obligations 
📌 Action: Audit your Award classifications and ensure over-award payments remain compliant. 

🧾 3. National Minimum Wage Update 
The National Minimum Wage (NMW) increases to $948 per week or $24.95 per hour. Applies only to employees not covered by an Award or enterprise agreement Casual loading remains unchanged at 25% 
📌 Action: Update pay rates for Award-free employees and issue Fair Work Information Statements to new hires. 

👷 4. Enterprise Agreements Benchmark Review
If you're operating under an Enterprise Agreement, it must continue to meet or exceed: The new Modern Award minimums, or The NMW, if no Award would apply 
📌 Action: Even if your EA has its own wage increase schedule, you may need to make top-up payments to stay compliant.
 
📘 5. New Fair Work Information Statement 
The Fair Work Information Statement has been updated to reflect the new minimum wage. Employers must give this to all new employees before or shortly after they start    👉 Download the latest version here

⚖️ 6. High Income Threshold Increases 
The High Income Threshold rises to $183,100. Affects eligibility for unfair dismissal claims (for Award/EA-free employees) Maximum compensation cap increasses to $91,550 Influences Guarantees of Annual Earnings that remove Award coverage 
📌 Action: Employers using high-income guarantees should double-check that agreements meet current standards. 

s🔧 7. Contractor Threshold Adjustment 
The Contractor High Income Threshold also rises to $183,100. Workers above this threshold can opt out of the 'whole of relationship' test. The 'start of relationship' test will then determine their status — often resulting in independent contractor classification 
📌 Action: Review contractor agreements and ensure opt-out options are clearly documented where relevant. 

💼 8. Redundancy Tax-Free Threshold Increases 
The tax-free limit for genuine redundancy payments has increased: Base amount: $13,100 Plus: $6,552 for each completed year of service 
📌 Action: Review redundancy and termination calculations to ensure correct tax treatment. 

⚠️ 9. Flow-On Effects from Wage Increases 
Be aware of the broader impacts of wage increases, which may affect: Leave loading and penalty rates Accrued leave liabilities Superannuation contributions Payroll tax and workers compensation premiums 
📌 Action: Factor these flow-on effects into your budgeting and HR forecasting for FY2025–26. 

👣 What to Do Next 
Update your payroll system with new wage and super rates Communicate changes to your payroll, HR, and finance teams Issue Fair Work Statements to all new hires Review annualised salaries and enterprise agreements for compliance 
Consult your advisor if you’re unsure how these changes affect your business If you’d like help preparing for these updates or conducting a wage compliance audit, reach out to your HR or legal advisor early in the new financial year.


Jim Courtwood

Time & Attendance Consultant

jimc@timeandattendance.com.au

1300 553 254

0437 772 977