1 July Updates

As it is the start of the new financial year, there are a few key figures of relevance that ought to be noted. Please find the key workplace relations figures and information that commenced 1 July 2025, below.

National Minimum Wage

Hourly Rate: $24.95 per hour

Weekly Rate: $948.00 per 38-hour week

Modern Award Minimum Wage

The modern award minimum wage Increased by 3.5%, effective from the first full pay period on or after 1 July 2025.

Do I have to pass on the minimum wage increase to my employees?

It depends.

For employees paid in line with modern awards, award wages increased by 3.5%, and you must pass these on.

If your employees are covered by an enterprise agreement (EA), it depends on the terms of the agreement. Things to factor in when considering if the minimum wage increase applies:

1. If your EA provides wages above the new minimums:
   • You may not need to adjust pay, as long as the rates remain above the relevant minimum wage.
   • You must continue paying at least what the EA specifies.
2. If your EA includes rates that fall below the corresponding award rates:
   • You must increase pay to at least the corresponding award rate, even if the EA hasn’t been formally updated.
   • The Fair Work Act requires that employees under an EA cannot be paid less than the applicable minimum wage rates.

Unfair Dismissal

High Income Threshold

From 1 July, the high-income threshold in unfair dismissal cases will increase to $183,100.

Compensation Limit

The compensation limit will be $91,550 for dismissals occurring on or after 1 July 2025.

How is the compensation limit set?

The compensation limit cap is the lesser of:

• Half the amount of the high income threshold immediately before the dismissal, or
• The amount of remuneration received by the person, or that they were entitled to receive (whichever is higher) in the 26 weeks before the dismissal.

Superannuation Guarantee

From 1 July 2025, the Superannuation Guarantee rate Increased to 12.0%.

This is the final step in a series of legislated increases that were introduced in 2012, aimed at enhancing retirement savings for Australians.

 If you already pay above the superannuation guarantee there is no need to increase the rate unless stipulated in a contract or industrial instrument.

Paid Parental Leave (PPL)

The maximum entitlement under the government’s Paid Parental Leave (PPL) scheme has extended to 120 days (24 weeks). Up from 110 days (22 weeks). In 2026, this will increase to 130 days (26 weeks).

For the first time, PPL will attract superannuation. From 1 July 2025, the ATO will administer Paid Parental Leave Superannuation Contributions (PPLSC) of 12%.

The amount of PPL parents can take off at the same time will also increase from 2 weeks to 4 weeks.