Key legislative changes

Key legislative changes have come into effect over the past few months.  

To ensure ongoing compliance, below is a concise summary of the legislative changes:

1. Serious invasions of privacy

In a landmark move, the Privacy Act 1988 (Cth) has introduced a statutory tort for serious invasion of privacy. This key reform gives an individual the right to take legal action against another individual or an organisation whereby that individual/organisation has invaded the individual’s privacy by intruding upon their seclusion or misusing personal information relating to them.

           This new tort came into effect on 10 June 2025.

            A more detailed article on this new tort will follow shortly.

• Increases to the National Minimum Wage and Award Wages

Effective from 1 July 2025, the modern award rates and minimum wages rates have increased by 3.5%.

The National Minimum Wage has now increased to $24.95 per hour which amounts to $948 per week (based on a 38-hour work week).

For casual employees, the minimum wage rate has increased to $31.19.

• Increase to superannuation guarantee

Effective from 1 July 2025, the superannuation guarantee has increased to 12%.   There will be no further adjustments to superannuation under the existing legislation.

• Increase to high-income threshold and unfair dismissal compensation cap

Effective from 1 July 2025, the high-income threshold for unfair dismissals has increased to $183,000. This means that if an employee earns more than the high-income threshold, they generally do not have a right to make an unfair dismissal application at the Fair Work Commission.   

Effective from 1 July 2025, the unfair dismissal compensation cap has increased to $91,550. This is the maximum compensation that can be awarded to an employee who has been unfairly dismissed.   

If an employee is successful in their unfair dismissal application, the Fair Work Commission may award compensation up to 26 weeks’ pay, or half of the high-income threshold, whichever is lower.

• Right to disconnect for small business employers

These changes commence on 26 August 2025 for small business employers (employers who have less than 15 employees at a particular time).

Employees will have a new right to disconnect outside of work hours. This means that employees have a legal right to refuse to monitor, read or respond to contact from an employer or third party unless the refusal is unreasonable.

There are several considerations that come into play when determining whether an employee’s refusal is unreasonable:

1. the reason for the contact;
2. whether the employee is compensated for:
   1. being available in the period when contact is made or attempted;
   1. working additional hours outside their ordinary hours of work.
3. the nature of the employee’s role and level of responsibility;
4. the employee’s personal circumstances i.e. family or caring responsibilities.

Employees and/or employers may seek orders from the Fair Work Commission to assist them in resolving disputes in relation to the right to disconnect. The right to disconnect will now be a workplace right under general protection laws.

For more information on any of these changes, please contact Nadia Maynard at [email protected].