It’s July 1, which means changes for employers Australia-wide. Increases to wages, superannuation, and entitlements are all incoming for the 25/26 financial year.
Here’s a quick breakdown of what’s changing for employers, and some hints on how to ensure you’re compliant.
Award and Minimum Wage Increase
Eligible employees are set to get a 3.5 per cent wage increase from the first full pay period starting on or after today, 1 July 2025.
The new National Minimum Wage (from today) for a full-time employee is $948 per week, or $24.95 per hour. The minimum wage for casual employees must include a 25 per cent casual loading, leaving them with at least $31.19 per hour.
This 3.5 per cent increase also applies to minimum rates within awards.
Allowances and minimum rates have increased throughout the Pastoral and Horticultural Awards. Make sure you’re familiar with these changes by checking the awards here:
Superannuation Changes
From 1 July 2025, the superannuation (super) guarantee increases to 12%.
The maximum super contribution base also increases to $260,280 or $65,070 per quarter, meaning employers don’t have to provide superannuation for earnings above this amount.
Increases to Income Thresholds and the Compensation Cap
From 1 July 2025, the:
- high income threshold will increase to $183,100
- contractor high income threshold will increase to $183,100
- compensation cap will increase to $91,550.
Paid Parental Leave Increase
The amount of parental leave pay available to families will increase to 120 days (24 weeks) for children born or adopted from July 1, 2025. This leave is paid in line with the National Minimum Wage and is separate to any employer funded paid parental leave.
The Australian Taxation Office (ATO) will also begin making superannuation contributions of 12% on Parental Leave Pay for a child born or adopted after 1 July 2025. These contributions will be paid from July 2026 onwards.
Sources: Fair Work