Changes in the Law relevant to your business in 2025

What’s new in Australian law that may affect you and your business? Important changes will take place in 2025, including employment law changes, a permanent migration program, payment increases, and businesses reporting on their carbon footprint.

This article sets out a summary of what you can expect this coming new year.

Employment Law changes

 From 1 January 2025, intentionally underpaying employee wages and entitlements is now a criminal offence. The Fair Work Act changes have come into effect, and businesses now have new compliance obligations.

However, the Voluntary Small Business Wage Compliance Code (Code) has been introduced to protect small businesses and prevent offences and criminal prosecution. The Code can be found here Federal Register of Legislation – Voluntary Small Business Wage Compliance Code Declaration 2024. The Code sets out factors for businesses to consider, like:

  1. Has the employer taken reasonable steps to work out the correct pay rates and entitlements for each employee;
  2. Has the employer made reasonable efforts to stay up to date with changes to their obligations, for example, workplace laws and pay increases;
  3. Seeking information or advice from reliable sources, like a lawyer, or the Fair Work Commission about paying employee entitlements correctly; and
  4. Fixing any issues with underpayments to employees by repaying them as soon as possible.

The Fair Work Ombudsman cannot refer a small business for criminal prosecution if it is satisfied the business has followed the Code in relation to underpayment.

There is now an increase to the maximum penalty for underpayment contraventions for a non-small business employer. What are the consequences you may ask?

  • For Individuals – up to $1.65 million
  • For Corporations – up to $8.25 million
  • Individuals can face up to 10 years imprisonment for intentional underpayment

Businesses, it is time for you to start checking payroll systems, Award changes and compliance and doubling down on compliance with employee pay and entitlements.

Pay rise for aged care staff

There is a wage increase for aged care staff, increasing between 3% to 7%. Direct care workers would have received half their pay increase on 1 January and the remainder to be received on 1 October.

 Migration Program

 This year new migration policies are to be introduced, with new opportunities for skilled workers, students, and innovators.

What has changed?

  • Revamped visa categories
  • Simplified pathways

Introducing expanded places for sponsored and migration visas, streamlining the pathway to permanent residency, and boosting regional economies and labour shortages.

The biggest anticipated change is the introduction of the National Innovation Visa, which will replace the current Global Talent Visa. Aiming to attract talent in critical industries like innovative technology, engineering and scientific research. Why you may ask?

  • This focuses on innovation for Australia and economic development
  • Targets individuals with proven expertise in STEM fields (Science, Technology, Engineering, and Mathematics).

The introduction of the Skills in Demand (SID) visa, has expanded and improved the way employers can sponsor individuals from overseas to come to Australia. Employers can sponsor eligible workers to fill a current position where they are unable to find an appropriately skilled Australian worker. Eligible people can stay working in Australia for up to 4 years, and Hong Kong passport holders may stay 5 years.

The introduction of SID aims to focus on areas of shortages in Australia, Core Skills, specialist skills, and high-earning and skilled migrants.

Those being sponsored to work under the Core Skills stream must be sponsored to work in an occupation listed on the Australian Government’s Core Skills Occupation List, which can be found here, Core Skills Occupation List.

Those being sponsored in the specialist skills stream (except trades, machinery operators, drivers and labourers) must meet the Specialist Skills Income Threshold, which is around $135,000.00.

 Businesses Carbon footprint reporting

 The introduction of the mandatory climate reporting rules now requires business owners to estimate their company’s emissions and outline plans to tackle future risks to reduce emissions. The new reporting requirements create greater director responsibilities, where disclosure of the company’s greenhouse emissions, risk management, and governance are submitted in a sustainability report filed with their financial data lodged with ASIC. You may ask who is affected by this new legislation, well the legislation will expand amongst different groups from now to 2027 as follows:

Reporting entity Group 1 (commenced January 2025) Group 2 (commences July 2026) Group 3 (commences July 2027)
ust meet 2 of 3 requirements Consolidated revenue: $500 million or more

EOFY consolidated gross assets: $1 billion or more

EOFY employees: 500 or more

Consolidated revenue: $200 million or more

EOFY consolidated gross assets: $500 million or more

EOFY employees: 250 or more

Consolidated revenue: $50 million or more

EOFY consolidated gross assets: $25 million or more

EOFY employees: 100 or more

 

Contact us

Have further questions or concerns with the coming years changes, contact us today to assist you with any legal questions. Contact us today on (02) 9189 5288

Craig Higginbotham and Nicole Sarraf

14 January 2025

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