From 1 July 2025, key changes to the Federal minimum wage and superannuation will affect many Australian businesses and employers. Whether you're managing a household budget, conducting pay reviews or overseeing payroll compliance, these changes matter.
The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and award minimum wages. This affects employees not covered by an award or enterprise agreement, as well as those on award rates.
The new National Minimum Wage will be:
These rates apply from the first full pay period starting on or after 1 July 2025.
Also from 1 July 2025, the superannuation guarantee rate increases to 12%. This applies to all eligible employees, meaning employers need to adjust super contributions accordingly.
The Fair Work Commission has also confirmed that the high income threshold will be increased from $175,000 to $183,100, therefore affecting the eligibility of employees to pursue unfair dismissal claims.
The maximum compensation cap is also being increased to $91,550 for post-1 July 2025 dismissal-related claims.
Failing to apply the correct pay and super rates can lead to underpayment issues, regulatory risk and prosecution, including new laws making underpayment a criminal offence.
Employers should review:
These annual changes may seem routine, but they can have real financial, legal and even criminal implications. A proactive payroll review helps prevent disputes and ensures peace of mind.
Staying compliant with evolving wage and superannuation obligations is not just a legal requirement—it’s good business.
Please contact us for advice on award coverage or remuneration strategies, or a review of your pay rates for compliance.