As the new financial year begins, it’s vital for employers, HR professionals, and job seekers to stay across the latest changes to Australia’s employment laws and entitlements. From July 2025 to June 2026, a range of reforms will take effect, including increases to wages and superannuation, expanded leave entitlements, and new workplace rights.
At TLH Recruitment, we’ve summarised the key changes that could impact your business or your role as an employee and outlined the actions you can take to stay compliant and prepared.
1. Minimum Wage Increases
From 1 July 2025, the Fair Work Commission has increased the National Minimum Wage by 3.5%, resulting in a minimum full-time weekly wage of $948.00 or $24.95 per hour. This increase also applies to modern award wages across a wide range of sectors.
Employers should:
- Review and update all employment agreements and pay rates to reflect the updated minimums
- Ensure payroll systems are correctly applying the new rates
- Communicate changes clearly to staff to maintain transparency and trust
2. Superannuation Guarantee Now at 12%
The Superannuation Guarantee (SG) rate has now increased to 12% of ordinary time earnings, effective 1 July 2025. This marks the final planned increase under the government’s long-term retirement savings strategy.
Employers should:
- Check that payroll software and systems are applying the 12% SG rate
- Review employment contracts that refer to inclusive or exclusive super amounts
- Ensure contributions are paid on time to avoid penalties and interest
3. Paid Parental Leave Scheme Expands
From 1 July 2025, the government-funded Paid Parental Leave scheme has increased from 22 to 24 weeks. Parents can now take their leave more flexibly over two years. In addition, starting July 2026, superannuation contributions will be paid on government-funded Paid Parental Leave.
Employers should:
- Update internal policies to reflect the 24-week entitlement
- Prepare for upcoming superannuation obligations starting July 2026
- Educate employees about their options for parental leave planning and how this affects their entitlements
4. Right to Disconnect Laws
As of 26 August 2025, small businesses will also be required to comply with the Right to Disconnect laws. Employees will now have the legal right to ignore unreasonable work-related contact outside of working hours, unless exceptions apply.
Employers should:
- Introduce or update workplace policies around communication expectations
- Provide guidance and training to managers to prevent potential breaches
- Promote work-life balance initiatives to support staff wellbeing
5. Casual Conversion Rights for Small Businesses
From 26 August 2025, casual employees working in small businesses will gain the right to request conversion to permanent employment if they meet the qualifying criteria (e.g. regular hours for 6–12 months).
Employers should:
- Audit their casual workforce to identify eligible employees
- Prepare a clear process for managing and responding to conversion requests
- Update recruitment and onboarding documents to reflect casual conversion entitlements
6. Key Actions for Clients and Employers in FY 2025–2026
Here’s a practical checklist for staying on top of the new changes:
✅ Review and Update Employment Contracts
- Reflect updated minimum wage and super changes
- Include new entitlements such as expanded parental leave and casual conversion
- Ensure your contracts are aligned with Fair Work obligations
✅ Audit Payroll and HR Systems
- Confirm correct wage and superannuation rates are applied
- Update settings to track parental leave entitlements and disconnect policies
- Regularly reconcile super payments and leave balances
✅ Refresh Internal Policies
- Include Right to Disconnect guidelines
- Document a formal process for casual conversion
- Update parental leave provisions, including flexibility and future super obligations
✅ Train and Communicate with Staff
- Brief your leadership team on legal changes and their responsibilities
- Communicate policy updates clearly to all employees
- Promote awareness around new rights, such as the right to disconnect and conversion eligibility
✅ Plan Ahead for Compliance and Risk
- Review your annual compliance calendar
- Conduct internal audits or engage external support for HR reviews
- Stay informed with TLH Recruitment’s updates and resources
✅ Engage TLH Recruitment for Workforce Support
- Whether you’re managing a casual workforce or looking to build a strong, compliant team, TLH Recruitment is here to support your goals. We offer tailored advice, recruitment solutions, and guidance to help your business stay agile and compliant in a changing employment landscape.
This financial year marks a significant shift in Australia’s employment law framework, with a clear focus on improving job security, employee wellbeing, and long-term financial stability for workers. For employers, these changes present both an opportunity and a responsibility.
At TLH Recruitment, we help our clients stay informed, compliant, and competitive. From sourcing top talent to supporting your internal HR processes, we’re ready to partner with you every step of the way.
📩 Need support implementing these changes in your business?
Contact TLH Recruitment today for tailored recruitment solutions and HR advice.
