Here are Australia’s statutory updates for 2025.
Effective July 2025
Australia Raises Minimum Salary Thresholds and Superannuation Contributions
The Australian government has announced increases in salary thresholds and mandatory superannuation contributions for skilled workers, impacting employer obligations.
Key Details:
- Core Skills Income Threshold: Increased to AUD 76,515 (previously AUD 73,150).
- Specialist Skills Income Threshold: Increased to AUD 141,210 (previously AUD 135,000).
- Superannuation Contributions: Employers must increase mandatory superannuation from 11.5% to 12%.
- Regional Sponsored Visa Programs: The Temporary Skilled Migration Income Threshold (TSMIT) for regional-sponsored visas will be announced later in 2025.
Employers must ensure compliance with updated salary thresholds while maintaining market-rate guaranteed earnings for sponsored workers.
Source: Fragomen
Northern Territory Raises Payroll Tax-Free Threshold
The Northern Territory (NT) Government will increase the payroll tax-free threshold from $1.5 million to $2.5 million starting 1 July 2025 to support businesses and reduce tax burdens.
Key Updates:
- Higher Tax-Free Threshold: Employers will only be liable for payroll tax if their taxable wages exceed $2.5 million annually.
- Increased Maximum Deduction: The deduction cap rises to $2.5 million.
- Exemption for Apprentices & Trainees: Wages paid to apprentices and trainees will be exempt from payroll tax.
- Payroll Tax Waiver (January – June 2025): Businesses with wages below $2.5 million will be exempt from payroll tax during this period but must notify the Territory Revenue Office (TRO).
Source: Northern Territory Treasury and Finance
Effective 1 January 2025
Changes for Australian Businesses in 2025
Australia has introduced several key regulatory and compliance changes for businesses effective from 1 January 2025:
- Superannuation Guarantee Rate Increase: The superannuation rate will rise from 11% to 11.5% for all eligible employees.
- Climate Reporting Requirements: Large businesses must start submitting climate-related financial disclosures in line with international standards.
- Data Privacy Rules: Enhanced requirements for businesses handling sensitive customer data, including stricter penalties for breaches.
- Business Grants Expansion: Programs supporting digital adoption, workforce upskilling, and sustainability projects will be extended in 2025.
These changes aim to strengthen business compliance, sustainability, and workforce benefits.
Source: Business.gov.au
Australia Increases Welfare Payments and Support Thresholds
A series of welfare payment increases and reforms will take effect in January 2025, reflecting adjustments linked to inflation and cost-of-living measures.
Key Increases:
- Youth Allowance:
- Recipients will see fortnightly increases of $15 to $30.60, depending on family circumstances.
- Parental income test threshold rises by $2,555 to $65,189 per annum.
- Austudy:
- Single parents with children will receive the largest increase of $30.60 per fortnight.
- Single and partnered recipients without children will see a $24.30 increase.
- ABSTUDY Living Allowance:
- Fortnightly increases range from $1.50 (children under 16) to $54 for Masters or Doctorate students, totalling $1,285.40 per fortnight.
- Disability Support Pension (Under 21):
- Independent singles under 18, those aged 18-20, and partnered recipients will receive increases of $30.10 per fortnight.
These updates aim to improve financial support for students, young Australians, and Aboriginal and Torres Strait Islander recipients.
Source: News.com.au
Effective Late 2024 – 2025
Australia to Simplify Immigration System and Introduce Skills Shortage Visa
The Australian government will streamline visa categories and introduce a new Skills in Demand Visa to address labour shortages.
Key Updates:
- New Skills in Demand Visa: A three-tier system for high, core, and essential skills.
- Faster Processing: Simplified visa rules to reduce delays.
- Stronger Compliance: Increased oversight to prevent worker exploitation.
Implementation Timeline:
- Late 2024 – Early 2025: Visa process simplifications.
- 2025: Launch of the new Skills in Demand Visa.
These changes aim to attract global talent while strengthening workforce regulations.
Source: Fragomen
