It is an opportune time to take a look at some of the workplace changes that are in effect from July this year.

Some of these changes are are of immediate effect, and others, like the right to disconnect come soon.

National Minimum Wage Increase

The Fair Work Commission has increased the national minimum wage by 3.5 per cent, now set at $24.95 per hour, or $948.00 per week (full-time equivalent). The increase applies from the first full pay period on or after July 1, 2025. Employers will need to update payroll systems to reflect new minimum and award rate and communicate the increase to employees, particularly those who are paid according to an award.

Superannuation Guarantee – increase to 12%

From July 1, 2025, the Superannuation Guarantee (SG) rate has increased to 12%. This finalises the phased increases set by earlier legislative reforms.

Employers need to take the following important actions including adjusting payroll software and employer contribution systems, letting the employees know about the change to their superannuation.

Employers should review total remuneration packages to ensure that the superannuation guarantee increases are accounted for appropriately (where packages are inclusive of super).

Paid Parental Leave expansion

Eligible employees can now access up to 24 weeks of government-funded paid parental leave for births or adoptions from July 1, 2025. And, from July 2026, the government will begin paying superannuation contributions on paid parental leave. Employers should look at preparing for these future adjustments.

In preparation, employers should update internal leave policies and parental leave procedure and budget for potential top-ups or super contributions if provided voluntarily.

High-income threshold increase and compensation cap

The high-income threshold has been increased to $183,100. This affects eligibility for unfair dismissal claims (employees earning above the threshold are generally excluded if not covered by a modern award or enterprise agreement). The compensation cap for unfair dismissal is now $91,550. That is the largest amount the Fair Work Commission can award in unfair dismissal cases.

Small Business: Right to Disconnect (effective August 26, 2025)

From August 26, 2025, employees at small businesses (fewer than 15 staff) have the legal right to disconnect from their emails and phones, meaning they can refuse work-related communication outside normal hours, unless refusal is unreasonable.

Businesses should draft and implement a “right to disconnect” policy with clearly defined expectations around availability, response times, and emergencies. Managers and staff need to be advised to avoid after-hours contact unless absolutely necessary.

Casual conversion rights for employees of small business employers

Casual employees engaged by a national system employer that is a small business employer will be entitled to initiate a request for casual conversion to permanent employment under the ‘employee choice pathway’ from August 26, 2025.

Under these new rules, eligible casual employees may notify their employers in writing of their intention to convert into permanent (full-time or part-time) employment.

Upon receiving a written request, the employer must respond to the request within 21 days, either accepting or refusing the conversion. Reasons for not accepting the change must be based on reasonable grounds as specified in Division 4A of the Fair Work Act 2009 (Cth).

New statutory tort for serious invasions of privacy becomes law

From June 10, 2025, individuals have had a statutory cause of action in tort for serious invasions of privacy. The cause of action can be brought against other individuals, or against entities, regardless of whether they are otherwise bound by the Privacy Act 1988 (Cth) (Privacy Act). This means that employers are not immune from the cause of action and can potentially have direct or vicarious liability under it.

Wage theft reminder

From January 1, 2025, intentional underpayment of wages by employers will become a criminal offence.

Employers will commit an offence if:

• they’re required to pay an amount to an employee (such as wages), or on behalf of or for the benefit of an employee (such as superannuation) under the Fair Work Act, or an industrial instrument
• they intentionally engage in conduct that results in their failure to pay those amounts to or for the employee on or before the day they’re due to be paid.

The penalties for companies:

• if the court can determine the underpayment, the greater of 3 times the amount of the underpayment and $8.25 million, or
• if the court can’t determine the underpayment, $8.25 million.

The penalties for individuals:

• maximum of 10 years in prison
• if the court can determine the underpayment, the greater of 3 times the amount of the underpayment and $1.65 million, or
• if the court can’t determine the underpayment, $1.65 million.