For companies employing talent in Australia or looking to expand into the region, staying ahead of regulatory changes is essential for compliant and effective workforce management. Beginning July 1, 2025, several updates to employment-related policies in Australia will take effect, impacting payroll, benefits, and tax obligations.
Whether you are a global enterprise or a scaling startup hiring in Australia, understanding these shifts will help you prepare and adapt your hiring strategy accordingly. In this post, we’ll break down the key updates and explain what they mean for employers and employees alike.
The Australian government will increase the superannuation guarantee (SG) contribution rate from 11.5% to 12% of ordinary time earnings, effective July 1, 2025.
Superannuation is a cornerstone of Australia’s retirement system. The SG rate applies to most employees and must be paid quarterly. The increase to 12% is part of a long-term reform strategy designed to strengthen retirement savings across the workforce.
Update your payroll systems and employment contracts to reflect the higher contribution rate.
Review budget allocations to account for the increased employer cost per employee.
Communicate the change transparently to your Australian workforce.
The maximum superannuation contribution base (MSCB) will be reduced from AUD 65,070 to AUD 62,500 per quarter for the 2025–26 income year.
The MSCB sets the income threshold beyond which employers are not required to make additional SG contributions. By lowering this cap, the government aims to limit super contributions on high incomes while maintaining equity in the system.
Ensure your payroll processing tools are configured to apply the updated cap.
If you offer top-up super contributions, revisit your internal policy for high-income earners.
Revised income thresholds for the Medicare Levy Surcharge (MLS) will apply from the new financial year. The surcharge affects individuals and families without private hospital cover who earn above a certain income level.
The MLS is designed to encourage higher-income earners to take out private health insurance, helping to ease pressure on the public healthcare system. Not maintaining an appropriate level of coverage could result in additional tax liabilities.
Inform employees—especially those on higher salaries—about potential tax implications if they lack private hospital cover.
Ensure that salary packaging and tax guidance are updated to reflect the new MLS thresholds.
Refer your team to the Australia Factsheet for detailed income band information and coverage requirements.
Australia’s national minimum wage will increase to AUD 24.95 per hour, equating to AUD 948 per week for full-time employees.
This change is designed to keep wages aligned with inflation and cost-of-living adjustments. It ensures workers receive fair pay and maintain purchasing power in a changing economy.
Audit all current wage levels to ensure no employee falls below the new threshold.
Adjust job offers and employment contracts accordingly for new hires.
Be mindful of award rates, as industry-specific minimum wages may also increase proportionately.
These changes reflect Australia’s proactive approach to employee welfare, equitable retirement planning, and sustainable healthcare. But for employers—especially those hiring remotely or managing distributed teams—compliance requires more than just awareness. It demands precise execution and ongoing adaptation.
That’s where Slasify comes in.
At Slasify, we specialize in helping global companies hire, onboard, and manage employees in Australia with full compliance and minimal complexity. Whether you’re exploring your first hire or expanding your existing team, we provide tailored solutions that cover:
Employment contract creation
Local payroll processing and tax withholding
Superannuation administration
Benefits and insurance setup
Ongoing HR compliance support
Our Australia Hiring Guide offers an in-depth look at everything you need to know—from employee entitlements to termination practices.
We know these updates can be daunting, but you don’t have to handle them alone. Let us be your partner in compliant hiring and seamless workforce management.
Contact us today to learn how we can support your growth in Australia and beyond.
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