Author Kerry Bebendorf Partner, Business Advisory
About author

Kerry is a well-rounded business adviser working closely with business owners to deliver proactive advice across tax, budgeting, cashflow and succession planning. With a hands-on, practical approach, she takes time to understand your environment and supports you with timely, accurate information. Kerry helps you navigate obligations, challenge assumptions and plan strategically, so your business can thrive in a changing world.

From 1 July 2025, new national minimum wage and superannuation guarantee (SG) rates have come into effect. These changes carry important implications for business owners and employers across Australia.

Minimum Wage Rises by 3.5%

The Fair Work Commission has implemented a 3.5% increase to the National Minimum Wage. Full-time adult employees are now entitled to a minimum of $948.00 per week, or $24.95 per hour. This increase applies to award and agreement-free employees, as well as those covered by modern awards.

Approximately 2.6 million workers are expected to be impacted. The new rates apply from the first full pay period starting on or after 1 July 2025.

Superannuation Guarantee Reaches 12%

As part of the government’s long-term approach to strengthening retirement outcomes, the SG rate has risen from 11.5% to 12%. Employers must now contribute 12% of an employee’s ordinary time earnings to their nominated super fund.

This is the final scheduled increase under the current legislative pathway and marks a key milestone for retirement savings policy.

Payroll Tax Thresholds for 2025–26 Financial Year

Payroll tax obligations vary between states. Key thresholds for the new financial year include:

Queensland

  • Annual threshold: $1.3 million
  • Tax rate:

    • 4.75% for employers with taxable wages up to $6.5 million
    • 4.95% for employers with taxable wages over $6.5 million

New South Wales

  • Annual threshold: $1.2 million
  • Tax rate: 5.45% 

If you believe your payroll will exceed the weekly equivalent of these thresholds in either state, please notify us as soon as possible so we can assist with registration and compliance.

What this means for you

All employees working in Australia are entitled to a minimum wage. This is the minimum amount an employee can be paid for the work that they’re doing.

For Employers:

  • Update your payroll systems to reflect the new minimum wage and SG rates.
  • Review employment contracts to ensure compliance with updated super obligations.
  • Monitor payroll tax exposure in line with state-specific thresholds.
  • Plan for increased employment costs due to higher super contributions.
  • Reach out early if you expect your payroll will exceed relevant thresholds in QLD or NSW.

For Employees:

  • Review payslips to confirm accurate wage and super payments.
  • Understand your entitlements and how they affect take-home pay and retirement savings.
  • Raise concerns early with your employer or financial advisor if something doesn’t look right.

We can help

If you’d like to discuss how these changes apply to your business or want help reviewing your payroll obligations, contact your Moore Australia advisor.

We’re here to support you in meeting your compliance responsibilities and planning ahead for your team’s future.