Australian employers should prepare for several important upcoming payroll changes and the date to circle on your calendar is 1 July 2025.
Two major updates are coming your way: the final bump to the Superannuation Guarantee (SG) and the introduction of super on government-funded paid parental leave. Both will change the way you manage payroll, budgets and compliance.
From 1 July 2025 the SG rate will increase from 11.5% to 12%. As a business you’ll need to make sure your payroll systems are updated and that you’re budgeting for that higher contribution. If your employees’ salaries are quoted as “inclusive of super,” employers will also want to double check contracts and ensure everything stacks up correctly.
Another big change is super will be paid on government-funded paid parental leave for the first time. The best part? The cost is covered by the ATO, not the employer. The ATO will administer the cost to the superfund outside of your business (different to the paid parental leave which is given directly to the employer). Even though your business isn’t impacted financially, it’s still worth updating your leave policies and communicating this to your employees.
What does this mean for employers?
- Update payroll software to reflect the 12% SG rate – depending on your payroll system, this might be a manual update or if your payroll system does this automatically, its worth checking these updates are applied
- Review employment contracts and total remuneration packages
- Update parental leave info and communicate the changes to staff
- Keep an eye on legislative changes, especially around high-balance super
Other things to know come 1 July 2025
- The National Minimum Wage will be increased by 3.5% from 1 July 2025 bringing the Hourly Rate to $24.95 and the Weekly Rate to $948.00
- Paid Parental Leave increases from 22 weeks to 24 weeks from 1 July 2025
Take the stress out of payroll – we’ve got you covered
Let’s be honest keeping up with payroll compliance isn’t always easy especially when the rules keep changing. But the good news? You don’t have to do it alone.
We’ll make sure your business is ready for every 1 July change. Whether you’re a small business or scaling up fast, our team is here to make payroll one less thing to worry about.
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Disclaimer: The information provided in this article is for general informational purposes only and is not intended as a substitute for professional advice. Reliance on the information in this article is at your own risk, and it should not be used as a basis for making decisions without consulting a qualified professional.