Australia is set to see several significant changes starting from 1 July 2025, benefiting workers, families, and road users alike.
These updates come in the form of higher wages, increased government support, and adjustments to key services aimed at reducing costs of living and improving safety.
Minimum Wage Increase
Australia’s lowest-paid workers will receive a pay rise as part of the national minimum wage increase. Effective from 1 July, the wage will rise by 3.5 percent, bringing the new rate to $24.95 per hour.
his change will provide a weekly income of $948 for a standard 38-hour workweek. This decision, handed down by the Fair Work Commission, will impact over 2.6 million Australians.
Boost to Centrelink Payments
In response to rising living costs, Centrelink payments will see a 2.4 percent increase. This will help millions of Australians cope with financial pressures. Specific updates include:
- Family Tax Benefit (FTB) Part A:
- For children under 13 years, the payment will rise to $227.36 per fortnight.
- For children aged 13 or older, the amount will increase to $295.82 per fortnight.
- Family Tax Benefit Part B:
- The maximum payment will rise to $193.34 per fortnight.
- For families with a youngest child aged 5 or older, the payment will increase to $134.96 per fortnight.
These increases have been implemented annually since the FTB’s introduction in 2000, ensuring that families receive adequate support as living costs climb.
Social Services Minister Tanya Plibersek emphasized the importance of these payments in helping families manage the cost of raising children.
Superannuation Guarantee Rise
From 1 July, the superannuation guarantee will rise from 11.5 percent to 12 percent, increasing the mandatory employer contributions to employees’ superannuation.
This rise will be applied to all salaries and wages paid from this date onward, regardless of when the work was performed.
Additionally, superannuation contributions will now be made on the Paid Parental Leave scheme for the first time, offering more comprehensive financial support for parents.
Paid Parental Leave Expansion
Australia is also improving its paid parental leave program. Starting 1 July, the government will increase the government-funded parental leave from 20 to 22 weeks. The federal government plans to continue expanding this scheme progressively until it reaches 26 weeks by July 2026.
Families will receive up to $24,000 in total following the birth or adoption of a child. The new system will also offer greater flexibility, allowing parents to share the leave and spread it across a two-year period.
Immigration Reforms for Skilled Workers
Australia’s skilled migration system is being revamped to ensure better protection for workers and to attract high-quality talent. The Core Skills Occupation List will replace the Skilled Occupation List, prioritizing jobs with genuine shortages.
Employers will now need to meet stricter requirements, including paying market salary rates and demonstrating they have made efforts to hire locally. Additionally, income thresholds for skilled visa applicants will rise by 4.6 percent.
Stricter Road Rules and Penalties
Changes to road rules in various states will take effect from 1 July. In New South Wales (NSW), drivers caught using their mobile phones, even when stopped at traffic lights, can face fines of up to $1,209 and the loss of five demerit points.
Meanwhile, in Victoria, the requirement for drivers to slow down to 40 km/h when approaching emergency vehicles will now include tow trucks, roadside assistance, and incident response workers. Additionally, Queensland will see a 3.4 percent increase in vehicle registration fees and traffic fines.
AI-Powered Surveillance to Combat Distracted Driving
To address the rising issue of distracted driving, Australian governments are rolling out AI-powered surveillance cameras capable of detecting mobile phone use behind the wheel. This initiative aims to reduce the growing problem of distracted driving and improve road safety.
Starting 1 July 2025, Australians will experience several important changes, including a pay rise for the lowest-paid workers, increases in Centrelink payments, and an expansion of paid parental leave.
These measures, along with reforms in immigration and road safety, reflect the government’s ongoing commitment to supporting families, improving worker welfare, and enhancing public safety.
These changes, aimed at easing the financial burden and ensuring a safer, more sustainable environment for all, are set to have a positive impact across the nation.
FAQs
What is the new minimum wage in Australia from 1 July 2025?
The new minimum wage will be $24.95 per hour or $948 per week based on a 38-hour workweek.
How much will the Family Tax Benefit increase in 2025?
The maximum rate of FTB Part A will increase to $227.36 per fortnight for children under 13 and to $295.82 for children over 13. FTB Part B will rise to $193.34 per fortnight.
What changes are being made to paid parental leave in Australia?
The paid parental leave will increase from 20 weeks to 22 weeks from 1 July 2025, with plans to reach 26 weeks by 2026.