Superannuation Changes 2025: Are You Prepared?
1. Super Guarantee is going up to 12%
From 1 July 2025, the compulsory superannuation rate, known as the Super Guarantee, will increase from 11.5% to 12%. This is the final step in a series of gradual increases that started a few years ago.
What this means for you: If you run payroll, it’s time to update your systems and double-check employee contracts. For businesses offering “total remuneration” packages, keep in mind that the take-home pay could decrease unless you adjust for the higher super contribution.
2. Super cap for high earners is changing
The maximum super contribution base, that’s the quarterly earnings limit employers have to pay super on, is being adjusted down to $62,500 per quarter (was $65,070). That means the most you’ll have to contribute per quarter is $7,500 per employee.
ATO – Maximum super contribution base
What this means for you: If you have high-income staff, be sure your payroll calculations reflect this new cap. It’s a small tweak, but it could impact your overall super outlay.
3. Super transfer cap is increasing
The Transfer Balance Cap (how much someone can move into a tax-free retirement pension) will go up to $2 million (currently $1.9 million). This also shifts the Total Super Balance threshold.
What this means for you: While this mostly affects employees nearing retirement, it’s worth being aware of in case your team has financial questions or needs referrals to financial advisors.
4. New tax on super over $3 million (still in the works)
There’s a proposed law that, if passed, would add an extra 15% tax on earnings from super balances over $3 million, bringing the tax rate to 30% on that portion.
Treasury – Better targeted superannuation concessions
What this means for you: This won’t affect most employees, but for those with large balances, it could be significant. Keep an eye on whether the legislation passes so you can communicate changes to relevant team members or clients.
5. Super will be paid on Paid
Parental Leave (eventually)
Big news: from 1 July 2025, the legislation kicks off to include super on the government-funded Paid Parental Leave scheme. But here’s the catch—it won’t actually be paid until 1 July 2026, and the government (not employers) will handle the contributions.
Services Australia – Superannuation for Parental Leave Pay
What this means for you: No cost or action required for now, but it’s a great move for gender equity and long-term savings. It’s also a good time to start updating your leave policies and letting staff know what’s ahead.
6. Minimum wage is increasing
The national minimum wage is set to rise by 3.5%, meaning the new base will be $24.95 per hour or $948.00 per week for full-time employees.
Fair Work – Annual Wage Review 2024–2025
What this means for you: If your business hires award or minimum wage workers, make sure your payroll systems reflect the change. And don’t forget to update internal pay guides and communicate the changes clearly to your team.
Flexible, Fast, and Experienced: The Rise of On-Demand HR Talent
Whether it’s covering parental leave, leading a major change initiative, or scaling recruitment during rapid growth, organisations across Australia are increasingly turning to contract HR experts to deliver impact without the overhead of permanent hires.
Why Is HR Contracting on the Rise?
1. Business Agility is Now Essential
Modern businesses are operating in unpredictable environments, economic shifts, restructures, hybrid work challenges. Interim HR specialists offer on-demand expertise, helping organisations remain agile and responsive.
2. Cost-Effective, Scalable Expertise
Unlike full-time hires, interim HR contractors can be engaged for precisely the amount of time needed….whether it’s 3 months, 6 months, or longer. This makes them ideal for project-based work or covering urgent HR gaps without stretching the budget.
3. Strategic Talent During Times of Change
During restructures, acquisitions, or high-growth periods, businesses often need strategic HR leadership fast. Interim HR Directors, Business Partners, and Change Managers are filling that gap, leading with clarity and neutrality.
4. Shift Toward Portfolio Careers
Many senior HR professionals are choosing to work independently, offering their services across multiple companies. This talent pool is rich, experienced, and often overqualified, bringing immediate value without the onboarding lag.
5. Access to Specialised Skills
Need someone to implement a new HRIS? Launch a DEI initiative? Navigate complex compliance? Interim HR talent often comes with niche expertise, helping you fast-track results where internal capacity or capability is lacking.
As the nature of work continues to evolve, interim HR contracting is no longer a stopgap, it’s a strategic workforce solution. Whether you’re filling a temporary gap or driving a transformation project, interim professionals offer flexibility, speed, and expertise that’s hard to match.
In the new financial year 2025/2026, expect to see more businesses integrating contract HR talent into their broader people strategy and more top-tier professionals choosing this agile way of working.
The Pros and Cons of 360 Degree Surveys: Is It Right for Your Business?
360 degree surveys are a powerful feedback tool used by organisations to evaluate employee performance, leadership effectiveness, and workplace culture. By collecting feedback from a range of sources including peers, direct reports, managers, and sometimes clients, these surveys provide a well-rounded view of an individual’s strengths and areas for improvement.
But are 360 degree surveys always beneficial? In this blog, we explore the key pros and cons of 360 degree surveys to help you decide if they’re the right fit for your organisation.
The Pros of 360 Degree Surveys
1. Holistic Feedback
Unlike traditional performance reviews that rely solely on a manager’s perspective, 360 degree surveys gather insights from multiple sources. This broad view helps uncover blind spots and provides a more complete understanding of an employee’s behaviour and impact.
2. Enhanced Self-Awareness
When employees see how others perceive their performance, it can prompt powerful moments of reflection and growth. This increased self-awareness often leads to improved performance and stronger leadership skills.
3. Improves Communication and Collaboration
By involving team members in the feedback process, 360 degree surveys encourage open dialogue and build a culture of mutual respect. Employees become more aware of how they interact with others, which can lead to better teamwork.
4. Supports Leadership Development
For organisations that prioritise leadership development, 360 feedback is a valuable tool. It helps identify high-potential talent, development needs, and coaching opportunities based on real workplace behaviour.
5. Provides Actionable Data
With the right tools in place, 360 surveys can generate data that informs performance reviews, succession planning, and professional development initiatives.
The Cons of 360 Degree Surveys
1. Risk of Bias
Feedback can be influenced by personal relationships, workplace politics, or recent conflicts. If not carefully managed, this bias can distort results and reduce trust in the process.
2. Dependence on Feedback Culture
360 surveys require a strong culture of feedback and trust. Without it, participants may withhold honest opinions or interpret results defensively, undermining the process.
3. Time Intensive
Coordinating a 360 survey involves collecting feedback from multiple sources, analysing results, and conducting follow-up conversations. This can be time-consuming, especially for large teams.
4. Lack of Goal Alignment
Some surveys may focus more on personality traits or soft skills rather than measurable outcomes. When not linked to clear goals, the feedback may be less impactful or actionable.
5. Potential for Stress
Being reviewed by peers and subordinates can cause anxiety for employees. Without proper framing and support, this stress can affect morale and performance.
Is a 360 Degree Survey Right for You?
360 degree surveys are most effective when:
- Your organisation encourages continuous learning and development
- Employees feel comfortable giving and receiving feedback
- You have systems in place to manage and act on the results
- The purpose is focused on growth rather than evaluation alone
Best Practices for Implementing 360 Feedback
- Keep feedback anonymous to promote honesty
- Train employees and managers on constructive communication
- Use results for development planning rather than formal appraisals
- Provide follow-up coaching or support
- Regularly evaluate and refine your survey process
Conclusion
When thoughtfully executed, 360 degree surveys can lead to meaningful improvements in employee engagement, leadership development, and team dynamics. However, they require the right culture, clear objectives, and structured support to deliver real value.
If you’re committed to fostering growth, accountability, and communication in your organisation, 360 degree feedback may be exactly what you need.
Think Your Overseas Contractors Aren’t Employees? Fair Work Just Proved Otherwise
In a groundbreaking ruling, the Fair Work Commission (FWC) confirmed that an overseas remote worker, based in the Philippines, was legally an employee under the Fair Work Act. This decision has major implications for Australian businesses that engage international contractors.
Background:
Joanna Pascua, a legal assistant based in the Philippines, worked remotely for MyCRA Lawyers, a Brisbane-based business also known as the Doessel Group, from 2022 until March 2024.
After being dismissed over an alleged breach of confidentiality, Pascua filed for unfair dismissal with the FWC. The company argued she was a Philippines based contractor, not an employee, so Australian employment laws shouldn’t apply.
What the Fair Work Commission Found
The Commission disagreed. In a decision upheld by the Full Bench in early 2025, the FWC ruled that Pascua was an employee under Australian law, with access to unfair dismissal protections and minimum wage entitlements.
Fair Work Commission Decision: [2024] FWC 2669
Why the FWC Found She Was an Employee
Using the “multi-factor test”, the Commission looked beyond the contract label to the reality of the working relationship. Key factors included:
- Regular working hours: Set 8:30 am to 5:00 pm (AEST), five days a week
- Company oversight: Daily supervision, task assignment, and performance feedback
- Exclusive engagement: She could not subcontract or take other clients
- Integration: Used company email, software, and appeared in team Zoom meetings
- Below-award pay: $18 AUD per hour, lower than the relevant modern award rates for legal assistants
These indicators strongly pointed to an employment relationship, even though she was based outside Australia.
Does the Fair Work Act Apply to Overseas Workers?
Yes, in some cases. If your business is a constitutional corporation in Australia (most Pty Ltd companies qualify), and you engage someone overseas under a work arrangement that resembles employment, the Fair Work Act may apply.
This includes:
- Full-time or part-time remote workers
- Workers engaged exclusively by your business
- Individuals who are closely managed or directed by your staff
The Pascua decision sets a clear precedent: the Fair Work Commission can assert jurisdiction over overseas workers when Australian businesses attempt to avoid local employment laws through outsourcing.
Fair Work Ombudsman: Employees Working Overseas
Risks for Businesses Hiring Overseas Contractors
If your business hires remote workers overseas (especially in places like the Philippines, India, or Vietnam), this case highlights several legal and compliance risks:
Risk | Impact |
Misclassification | You may owe back pay, leave, and entitlements if a contractor is legally an employee |
Unfair dismissal claims | Overseas workers can now access employment protections |
Wage underpayment | Paying below the relevant Australian award rate is not justified by location |
Reputational damage | Failure to comply with Fair Work standards can harm employer brand and public trust |
How Employers Should Respond
Australian employers should take immediate steps to ensure their overseas hiring practices are compliant:
1. Review Remote Work Arrangements
Examine your existing contracts, pay structures, and working conditions. Are your contractors actually functioning like employees?
2. Assess Legal Risk
Use the multi-factor test. If your overseas worker is closely managed, works fixed hours, and cannot subcontract, they may be considered an employee under the Fair Work Act.
3. Consider Employer of Record (EOR) Models
Using an EOR can help manage compliance when hiring overseas, especially in the Philippines or other common remote talent markets.
4. Stay Up to Date
Keep track of Fair Work decisions that extend employment rights to global workers. This is a rapidly evolving area of Australian employment law.
Want Expert Help Implementing These HR Strategies?
Whether you’re looking to prevent employee burnout, redesign your onboarding experience, align your HR policies with upcoming FY 26 compliance, or boost team performance through a strategic offsite — we’re here to support you.
👉 Book a free consultation with one of our HR experts to explore practical, personalised solutions tailored to your business needs.
