LAW REPORT
Changes to laws from 1 July 2025
Ingrid Pagura | BA, LIB
As with most years, the new financial year sees a number of changes occurring. This means that you, as an employer, will need to update some of your workplace procedures.
Superannuation Guarantee
From 1 July the Superannuation Guarantee percentage has increased from 11.5 % to 12 % of ordinary time earnings. You are required to pay super contributions when an employee is over 18 years of age, or if under 18 years, if they are working over 30 hours a week. This now applies to all full-time, parttime and casual employees.
As an employer you must pay superannuation at least every 3 months into the employee’ s nominated account.
Since last year, superannuation has been included in the National Employment Standards( NES). The NES entitlement to superannuation aligns with superannuation laws, so if an employer complies with the superannuation guarantee they will also meet their obligations under the NES. The NES don’ t apply to everyone, but to those employees who are part of the national workplace relations system( Fair Work) or who reside in New South Wales, South Australia, Queensland, Tasmania or Victoria.
Please note that you usually aren’ t required to make superannuation contributions for contractors who are working for you. As small business owners they bear their own responsibilities. It is always best to check your responsibilities for superannuation payments at www. ato. gov. au.
Minimum Wage Increase
Also, from 1 July there is a 3.5 % increase to the national minimum wage and all modern awards. This increase took effect from the first full pay cycle after that date. Update your payroll system to include the new rate. There is a lot of useful information in the Pay and Wages section of the www. fairwork. gov. au website, so take some time to have a look.
Right to Disconnect
The Right to Disconnect legislation is now in force for small businesses from 26 August 2025. A small business is classified as one with 15 or fewer workers. The right to disconnect refers to a worker’ s being able to ignore a contact from an employer outside work hours. This includes contact from third parties, for example, clients.
This doesn’ t mean that an employer can never contact a worker out of work hours. They may do so, for example, in relation to covering a shift, to a roster issue, or in an emergency, so long as such contact is reasonable within the worker’ s circumstances. Workers who are on call do not have access to this new right. What is deemed reasonable must take into account each worker’ s circumstances, for example, whether they care for young children or elderly parents.
What should you do?
• Review your current contact methods and make sure they are still reasonable,
• Educate managers and supervisors about reasonable contact,
• Have a policy in place that covers contact outside work hours and make sure you implement it, and
• Check and update all contracts of employment to include a statement about contact outside work hours.
It’ s Tax Time
It’ s time to lodge tax returns for another year. The ATO has useful tips on preparing your returns. Please see the Businesses and Organisations section of the ATO at www. ato. gov. au.
Some of the common tips they promote for businesses are:
• Use digital tools and business software. This helps you streamline processes and spend less time on administration.
• Keep good records. This ensures you have the right information and avoid mistakes. It also means that you won’ t forget about some of those deductions you want to claim.
• Get advice from trusted sources, like your tax professional or the ATO website. Don’ t rely on a friend of a friend for your tax advice.
• Set aside GST, pay as you go( PAYG) withholding and superannuation from your cash flow, so you have the funds available when it’ s time to lodge and pay. There will be less of a panic.
174 | vol31 | no3 | JATMS