Key Human Resources Legislative Changes for SMEs
- Erin Barnes
- Jun 16
- 2 min read
Updated: Jun 17
Navigating the July 1, 2025 Essential Human Resources and Business Legislative Changes
With the new financial year, a suite of important legislative updates impacts Australian SMEs and Human Resources policies, presenting opportunities and obligations to strengthen your business practices. Here's what you need to know:
Superannuation and Wage Changes
Superannuation Guarantee Increase: Employers now contribute 12% to employee superannuation, requiring careful budgeting and payroll adjustments.
Minimum Wage Increase: A 3.5% rise sets the hourly rate at $24.94, demanding a timely review of employee pay rates.
PAYG Withholding Schedules: Some updated schedules necessitate immediate payroll reviews: https://www.ato.gov.au/tax-rates-and-codes/tax-tables-overview
Human Resources and Policy Legislation Updates
Criminalisation of Intentional Wage Underpayments: Deliberate wage theft is now criminally prosecutable, reinforcing the critical importance of accurate payroll practices.
Right to Disconnect Extended: From August 26, employees in businesses with fewer than 15 employees can refuse unreasonable after-hours work communication.
Casual Employment Changes: Clearer definitions and conversion pathways to permanent roles.
Enterprise Agreement Model Terms: The Fair Work Commission has clarified flexibility, consultation, and dispute resolution terms in enterprise agreements.
Updated Fair Work Information Statement: New hires must receive revised information, including superannuation entitlements.
Increased Wage Underpayment Penalties: Employers risk significant penalties, now up to three times the amount of any underpayment, if non-compliant.
Employee Benefits and Entitlements
Parental Leave Enhancements: Now 120 days of parental leave are paid, including superannuation contributions at 12%.
Skilled Visa Salary Thresholds: Increased minimum salaries for skilled visa applicants.
Business Expense Relief Measures
Energy Cost Relief: SMEs qualify for a $150 rebate on electricity bills, applied quartely.
Solar Battery Rebates: Encouraging renewable energy, SMEs now benefit from federal rebates supporting solar battery installations.
Additional Considerations
Vehicle Depreciation: The maximum vehicle value for depreciation calculations is now $69,674.
Fuel-Efficient Cars: New definitions specify vehicles must achieve fuel efficiency below 3.5 litres per 100 kilometres.
Instant Asset Write-Off: To claim asset purchases under the instant asset write-off scheme, purchases are encouraged to occur before July as we are yet to see Labor's promised commitment to extending the $20K instant asset write-off.
Supporting Your Business
A Human Edge is committed to guiding SMEs through these changes. If your business requires support adapting to these new obligations or aligning your Human Resources practices to ensure compliance, high performance, and human sustainability, please reach out.
