Insights

Annual Wage Review 2024–25: What Employers Need to Know

On 3 June 2025, the Fair Work Commission handed down its Annual Wage Review decision for 2024–25. As a result of this decision, minimum wages across Australia will increase from 1 July 2025. These changes include a 3.5% increase to both the National Minimum Wage and minimum award wages, and they will apply to a substantial portion of the Australian workforce. The decision will directly affect around 3 million employees, which represents approximately 20% of Australia’s total workforce. The most affected industries include hospitality, healthcare, aged care, social assistance, retail, and administrative services, where employees are more likely to be covered by a modern award and therefore directly impacted by changes to award wage rates. Key Changes from 1 July 2025 Following the Annual Wage Review decision, from the first full pay period on or after 1 July 2025: The National Minimum Wage will increase by 3.5%, rising to $24.95 per hour, or $948.00 per week for a full-time employee working a standard 38-hour week. Minimum award wages will also increase by 3.5%. This includes all classifications under modern awards across various industries. The superannuation guarantee rate will increase from 11.5% to 12%, in accordance with the legislated schedule of… Read More

Payday Superannuation: What the Draft Legislation Means for Employers and Workers

Payday superannuation is set to be one of the most significant reforms to Australian superannuation law in recent years. Under draft legislation released in March 2025, employers will be required to make superannuation contributions at the same time they pay wages to their employees. These changes are part of the Albanese Government’s Securing Australians’ Superannuation Package, announced in the 2023–24 Federal Budget. Subject to the passage of legislation, the new payday superannuation requirements will come into effect on 1 July 2026. The aim is to address persistent problems with unpaid or underpaid super, which can result in significant long-term impacts on workers’ retirement outcomes. Accordingly, an industry consultation period was held between 14 March and 11 April 2025. Why Payday Superannuation? Currently, employers are only required to pay superannuation contributions on a quarterly basis. While many do so more frequently, this system can lead to delays in employees receiving their entitlements and creates opportunities for non-compliance, because of the more limited deterrents for non-compliance. Unpaid or underpaid superannuation is increasingly recognised as a form of wage theft. According to the Federal Treasurer, Jim Chalmers MP, the new system could result in a 25‑year‑old median-income earner being approximately $6,000 better off… Read More

Understanding Redundancy: What Employers Need to Know

Redundancy is one of the tougher parts of managing a workforce. It affects real people, and it often arises at a time of uncertainty or change for a business. In New South Wales, the legal requirements around redundancy are strict, and employers need to approach the process carefully to avoid missteps. If you’re considering making a role redundant, it’s important to understand both the legal framework and the practical steps involved. Let’s walk through how redundancy works, what makes a redundancy genuine, and what you should be doing at each stage of the process. When Is a Role Redundant? Redundancy happens when a particular job is no longer needed. It might be because the business is restructuring, a new system has automated certain tasks, or demand has dropped off. The key point is that it’s the role, not the person, that is no longer needed and will cease to exist. This distinction matters because if the position is still required and you simply want to dismiss the employee, redundancy is not the correct pathway. What Is a ‘Genuine’ Redundancy? The main concern for employers considering making an employee redundant is whether this dismissal could be considered ‘unfair’. To ensure that… Read More