Key 2025 Workplace Law Updates

Key 2025 Workplace Law Updates

Key 2025 Workplace Law Updates

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  1. National Minimum Wage Increase

Fair Work has increased the national minimum wage by 3.5%, now set at:

  • $24.95 per hour, or
  • $948.00 per week (full-time equivalent).

Employers will need to:

Update payroll systems to reflect new minimum and award rates.

Review all employment contracts to ensure compliance with base pay obligations.

Communicate changes to staff, especially award-reliant employees.

Note: The increase applies from the first full pay period on or after 1 July 2025.

  1. Superannuation Guarantee Now 12%

From 1 July 2025, the Superannuation Guarantee (SG) rate has officially increased to 12%, completing the phased increases set by earlier reforms.

Action items for employers include:

  • Adjusting payroll software and employer contribution systems.
  • Communicating the change to employees.
  • Reviewing total remuneration packages to ensure SG increases are accounted for appropriately (especially where packages are inclusive of super).

  1. Paid Parental Leave Expansion

Eligible employees can now access up to 24 weeks of government-funded Paid Parental Leave for births or adoptions from 1 July 2025.

Plus, looking ahead to July 2026, the government will begin paying superannuation contributions on Paid Parental Leave – so now is a good time to prepare for future adjustments.

How businesses can prepare:

  • Update internal leave policies and parental leave procedures.
  • Budget for potential top-ups or super contributions if provided voluntarily.
  • Support returning parents with clear re-entry plans and flexible work arrangements.

  1. Small Business: Right to Disconnect (Effective 26 August 2025)

From 26 August 2025, employees at small businesses (fewer than 15 staff) gain the legal right to disconnect – meaning they can refuse work-related communication outside normal hours, unless refusal is unreasonable.

What businesses should do:

  • Draft and implement a “right to disconnect” policy.
  • Clearly define expectations around availability, response times, and emergencies.
  • Train managers to avoid after-hours contact unless absolutely necessary.

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Key 2025 FY Payroll Tax, STP, TPAR and Superannuation Deadlines

Key 2025 FY Payroll Tax, STP, TPAR and Superannuation Deadlines

Key 2025 FY Payroll Tax, STP, TPAR and Superannuation Deadlines

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2025FY STP Finalisation due dates:

  • Closely held employees – due 30 September 2025
  • All other employees – due 14 July 2025

2025FY Taxable Payments Annual Report (TPAR) for contractor payments – due 28 August 2025

Annual Payroll Tax Returns:

  • VIC – 21 July 2025
  • NSW – 28 July 2025
  • QLD – 21 July 2025
  • SA – 28 July 2025
  • WA – 21 July 2025
  • NT – 21 July 2025
State/Territory 2024–25 Annual Threshold 2025–26 Annual Threshold Official Source
Victoria (VIC)  $900,000  $1,000,000 – from 1 July 2025 SRO Victoria
New South Wales (NSW)  $1,200,000  $1,200,000 (unchanged) Revenue NSW
Queensland (QLD)  $1,300,000  $1,300,000 (unchanged) Qld Revenue Office
South Australia (SA)  $1,500,000  $1,500,000 (unchanged) Revenue SA
Western Australia (WA)  $1,000,000  $1,000,000 (unchanged) Revenue WA
Northern Territory (NT)  $1,500,000  $2,500,000 – from 1 July 2025 NT Revenue Office (via news)

Payment of June 2025 Quarter Superannuation – due by 28 July 2025

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Windfall Gains Tax – Land Rezoning in Victoria

Windfall Gains Tax – Land Rezoning in Victoria

Windfall Gains Tax – Land Rezoning in Victoria

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The Windfall Gains Tax (WGT) applies to significant increases in land value resulting from rezoning.  

WGT only applies in Victoria and is effective from effective from 1 July 2023. 

 

How Does It Work? 

  • When land is rezoned (e.g., from farmland to residential or commercial use), its value may increase substantially. 
  • WGT is applied to the uplift in land value due to rezoning. 
  • The landowner is responsible for paying the tax at the time of rezoning, though deferral options are available. 

 

How is the rezoning calculated  

  • The Valuer-General Victoria (VGV) conducts: 
  • A pre-rezoning valuation (hypothetical value before the rezoning). 
  • A post-rezoning valuation (value immediately after the rezoning). 
  • The uplift amount is calculated as: Post-rezoning value – Pre-rezoning value = Uplift 

These valuations are usually as at the date of the rezoning, and the land is assumed to be in the same physical state — only the planning control (zoning) changes. The valuation is independent of the land tax notice valuation.  

Example: 

Land rezoned on 1 March 2025 from Farming Zone to Residential Growth Zone. 

  • Pre-rezoning value (as determined by VGV): $1.2 million 
  • Post-rezoning value (as determined by VGV): $3.0 million 
    Uplift = $1.8 million → WGT applies 

 

Tax Rates 

  • Uplift below $100,000 → No tax. 
  • Uplift between $100,000 and $500,000 → Taxed at 62.5% on the amount exceeding $100,000. 
  • Uplift above $500,000 → Taxed at 50% of the total uplift. 

 

 

 

Exemptions and Exclusions: 

  • Residential land of 2 hectares or less is exempt if it’s the principal place of residence (PPR). 
  • Charity landowners may qualify for full or partial exemption. 
  • Some government-led rezonings may be excluded (e.g., GAIC areas). 

 

Payment Deferrals 

The WGT doesn’t have to be paid immediately when the rezoning happens, you can defer payment until a ‘trigger event’ occurs. 

  • You need to apply to the State Revenue Office (SRO) Victoria to register the deferral. 
  • The deferred tax amount becomes a charge on the land title — like a mortgage or caveat — which ensures the tax is paid when the trigger event happens. 
  • Interest is payable on the deferred amounts.  

 

Common Trigger Events for WGT Payment: 

  • Sale or transfer of the land (or part of it) to someone else. 
  • Subdivision of the land (e.g., creating new lots). 
  • Development approval that allows for subdivision or significant change in land use. 
  • The land ceasing to be owned by the person/entity that had the rezoning uplift (e.g., transfer to a related party that does not qualify for deferral). 

 

Objection Rights 

Landowners can object to: 

  • The pre-rezoning land value (CIV1). 
  • The post-rezoning land value (CIV2). 

Objections must be lodged in writing with the Commissioner of State Revenue within two months of receiving the WGT assessment. 

 

Examples of how WGT applies; 

 

Example 1 – Farmland Rezoned for Residential Use 

  • A landowner owns farmland valued at $2 million (CIV before rezoning). 
  • The land is rezoned for residential development. 
  • Its new value becomes $5 million (CIV after rezoning). 
  • The uplift in value is $3 million ($5M – $2M). 
  • Since the uplift exceeds $500,000, 50% of $3M ($1.5M) is payable as WGT. 

 

Example 2 – Contract Before Rezoning, Settlement After 

  • A sale contract was signed before rezoning, but settlement has not occurred. 
  • The seller remains the landowner at the time of rezoning. 
  • The seller is responsible for paying WGT. 

 

Example 3: Moderate uplift – partial WGT 

Scenario: 
Land rezoned from industrial to mixed-use (residential and commercial). 

  • Pre-rezoning value: $600,000 
  • Post-rezoning value: $1,100,000 
  • Uplift: $500,000 

Tax calculation: 

  • $100,000 is exempt. 
  • Taxable uplift = $400,000 
  • Because uplift is between $100,001 and $500,000, tax rate is 62.5% of the uplift above $100,000: 

 WGT = 62.5% × $400,000 = $250,000 

 

Example 4: Large uplift – maximum rate 

Scenario: 
Large parcel of farmland rezoned to allow for high-density residential development. 

  • Pre-rezoning value: $1.5 million 
  • Post-rezoning value: $4.5 million 
  • Uplift: $3.0 million 

Tax calculation: 

  • $100,000 exempt 
  • Taxable uplift = $2.9 million 
  • As the uplift exceeds $500,000, full 50% rate applies: 

WGT = 50% × $2.9 million = $1.45 million 

 

 

 Example 5: Exempt Principal Place of Residence (PPR) 

Scenario: 
A couple lives on a 1.5-hectare property in a semi-rural area. The land is rezoned from rural to residential. 

  • Pre-rezoning value: $900,000 
  • Post-rezoning value: $1.6 million 
  • Uplift: $700,000 

Because the land is less than 2 hectares and is their PPR, they qualify for the PPR exemption. 

Result: WGT = $0 

 

For Existing Landowners 

If your clients own land that may have the potential to be rezoned in the near future (e.g. Farm land on the edge of the town), please speak to them regarding their options.  

For Property Buyers 

Before purchasing land, clients should request a Property Clearance Certificate from the State Revenue Office (SRO). This certificate will show: 

  • Any due or unpaid WGT. 
  • Any deferred WGT amounts. 
  • Whether interest or penalty tax applies. 

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$5,000 On Farm Infrastructure Grant

$5,000 On Farm Infrastructure Grant

$5,000 On Farm Infrastructure Grant

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Victorian On-Farm Drought Infrastructure Grants Expanded Statewide

The Victorian Government has expanded its On-Farm Drought Infrastructure Grants program, making all primary production businesses across Victoria eligible to apply for grants of up to $5,000 (excluding GST).

These grants aim to support farmers with on-farm infrastructure improvements to help manage and prepare for drought conditions. Eligible businesses must match the grant dollar-for-dollar as part of a co-contribution model.

What the grant can fund

The $5,000 grant can be used for:

  • Constructing or upgrading stock containment areas

  • Installing or improving reticulated water systems

  • Upgrading irrigation systems

  • Building or upgrading grain and fodder storage

  • Internal re-fencing to improve paddock layout

  • Feed system improvements

Extra funding for select areas

Eligible primary producers in the originally listed 12 local government areas may receive an additional $5,000 in matched funding. These areas are:

  • Ararat

  • Colac Otway

  • Corangamite

  • Glenelg

  • Golden Plains

  • Greater Geelong

  • Moyne

  • Pyrenees

  • Southern Grampians

  • Surf Coast

  • Warrnambool

  • West Wimmera (postcodes 3312, 3317, 3318, 3319)

This brings the potential total funding in these areas to $10,000 with matched co-contributions.

For more information call us on (03) 5833 3000

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ATO late-payment interest will soon cost you more

ATO late-payment interest will soon cost you more

ATO late-payment interest will soon cost you more

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What’s changing?
If you pay your tax bill late, the ATO adds extra interest called the general interest charge (GIC). Until now you could claim that interest back on your tax return. From 1 July 2025, you won’t be able to claim it. In other words, every dollar of late-payment interest will come straight out of your pocket.

Why you should care

Before 1 July 2025 After 1 July 2025
Late-payment interest reduces your taxable income (you get some back at tax time). You get no tax relief. The full amount is a real, extra cost.

What to do before 30 June 2025

Check if you owe the ATO anything. Look at your online tax account or ask us.

Pay it off or refinance. A short-term bank loan usually costs less and its interest is still claimable.

If you’re fighting an ATO assessment, rethink your strategy. Losing after 1 July means heavier, non-claimable interest.

Example

  • You owe the ATO $10,000 and wait six months to pay.

  • GIC might add about $700.

  • Before 1 July 2025: you could claim that $700 and get up to ~$230 back (assuming a 32.5 % tax rate).

  • After 1 July 2025: you get $0 back – the whole $700 is gone.

Bottom line
Settle any tax debts or arrange a lower-cost loan before 30 June 2025. Waiting could make your tax delay far more expensive.

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Practice Update July 2025

Practice Update July 2025

Practice Update – July 2025 Edition

Returning to Work

Changes to car thresholds from 1 July

The car limit for the 2026 income year is $69,674.This is the highest value that a taxpayer can use to calculate depreciation on a car where they use the car for work or business purposes and they first use or lease the car in the 2026 income year.

If a taxpayer is buying a car and the price is more than the car limit, the highest input tax (GST) credit they can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2026 income year, the highest input tax credit they can claim is $6,334 (i.e., one-eleventh of $69,674).

The luxury car tax (‘LCT’) threshold for the 2026 income year is $91,387 for fuel-efficient vehicles, and $80,567 for all other luxury vehicles.

Input tax credits need to be claimed within the four year time limit. A taxpayer cannot claim an input tax credit for luxury car tax when they buy a luxury car, even if they use it for business purposes.

Reminder of June 2025 Quarter Superannuation Guarantee (‘SG’)

Employers are reminded that employee super contributions for the quarter ending 30 June 2025 must be received by the relevant super funds by Monday, 28 July 2025. If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.

The SG rate has increased to 12% from 1 July 2025.

Taking charge of upcoming employer obligations

As the end of the financial year has just past, the ATO is reminding employers that they should check what they need to do and take note of the following upcoming key dates.

Pay as you go (‘PAYG’) withholding — From 1 July 2025, some withholding schedules and tax tables will be updated (but not all).

Employers should use the correct tax tables or the ‘tax withheld calculator’ on the ATO’s website to work out how much to withhold from their employees’ payments. They should update their payroll software to withhold, report and pay the correct amount of tax.

Single touch payroll (‘STP’) reporting — Employers should complete an STP finalisation declaration by 14 July 2025, and also lodge a finalisation declaration for all employees they have paid and reported through STP, so they have the right information to lodge their income tax returns.

Employers should also ‘finalise’ all employees they have paid in the financial year, even those they have not paid for a while, such as terminated employees.

Finally, employers who change payroll software providers should finalise their records before they change, to ensure they and their employees have accurate information during tax time.

Editor: As noted above, employers also need to pay all SG contributions for the June 2025 quarter by 28 July 2025.

Notice of data exchange for skilled visa program compliance

The Department of Home Affairs will obtain data from the ATO to identify whether business sponsors are complying with their sponsorship obligations (e.g., paying visa holders correctly) and whether temporary skilled visa holders are complying with their visa conditions (e.g., to work only for an approved employer).

The Department will provide to the ATO biographical details (including name, address and date of birth) of clients who are, or were in the three most recent financial years, holders of Skills in Demand or Temporary Skills Shortage (subclasses 457 and 482) primary visas.

These details will be electronically matched against ATO data holdings. Where there is an identity match, the ATO will return Single Touch Payroll employment data for the relevant individual(s) to the Department.

It is estimated that records will be shared relating to around 58,000 individuals.

TBAR for June quarter due 28 July

All SMSFs must report relevant transfer balance account (‘TBA’) events using transfer balance account reporting (‘TBAR’). All events must be reported regardless of the member’s total superannuation balance.

Editor: TBA events include starting or commuting a retirement phase pension.

TBARs for the June quarter are due by 28 July 2025. If no TBA event occurred during the quarter, no lodgment is required.

If an SMSF does not lodge a TBAR by the due date, it may result in compliance action and penalties and could also negatively impact a member’s TBA.

Beware of tax advice from ‘finfluencers’

The Tax Practitioners Board (‘TPB’) warns that the number of ‘finfluencers’ is on the rise. These are influencers who offer financial advice, including tax advice, on various social media platforms such as Instagram and TikTok.

Unfortunately, they do not always have the necessary qualifications to give out this advice or provide all the information taxpayers need to make a fully informed decision. This can result in taxpayers suffering serious financial harm.

The main way ‘finfluencers’ make their money is by getting paid by companies that want to promote their financial products through the ‘finfluencers’ social media platform.

Therefore, taxpayers who are going to use someone to help them manage their tax affairs should make sure they are registered with the TPB by checking the TPB Register.

Taxpayer’s claim for home office and car expenses successful

The Administrative Review Tribunal (‘ART’) recently held that a taxpayer was entitled to claim deductions for home office and car expenses incurred during the COVID-19 pandemic.

The taxpayer was employed full time by the ABC producing the ABC Sport Digital Radio station (‘Digital Role’) and producing ABC live sports broadcasts, mainly NRL football (‘Live Role’).

During the 2021 income year, because of restrictions imposed in response to the COVID-19 pandemic, the taxpayer undertook all of his Digital Role from a second bedroom in his apartment (his home office) which he was renting with his wife, and he undertook most of his Live Role from the ABC’s Southbank Studios in Melbourne.

The taxpayer claimed deductions for occupation expenses (being the proportion of rent for his apartment referable to the use of his home office in performing his Digital Role), and for car expenses incurred in driving between his home and the ABC studios at Southbank on days when he performed both roles.

The ART allowed the taxpayer’s claims for occupation expenses in full, as the COVID-19 restrictions required him to earn most of his income at his home, and so a proportion of rent was incurred in gaining his assessable income.

The ART also allowed the car expenses in full on the basis that on the days when the taxpayer “closed his laptop at home, picked up his car keys and drove to the Southbank Studios . . . he was at work the entire time and his travel was therefore ‘on work’ . . .”

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

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