As the Labor Government begins a new term, significant workplace reforms are officially in motion—many of which will reshape how we approach employment, pay equity, and workforce planning in Australia. In a recent presentation, I walked through the key changes already confirmed, those proposed, and what business owners and HR leaders should be doing right now to prepare.
🎥 Watch the full presentation recording in this article.
📌 Gender-Based Undervaluation Review: A Major Shift in Pay Equity
In April 2025, the Fair Work Commission (FWC) released its initial findings on the systemic undervaluation of work in five female-dominated sectors. This is part of a landmark review driven by the FWC’s Expert Panel for pay equity in the care and community sectors.
Awards Under Review:
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Pharmacy Industry Award 2020
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Health Professionals and Support Services Award 2020
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Social ,Community, Home Care and Disability Services Industry Award 2010 (SCHADS)
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Indigenous Health Workers and Practitioners Award 2020
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Children’s Services Award 2010
Confirmed Amendments:
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Pharmacy Award:
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14.1% minimum wage increase for pharmacists
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Phased over 3 years from 30 June 2025
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First award confirmed under this gender equity process
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Provisional Amendments (Pending Final Determinations):
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Health Professionals: Up to 35% increases proposed for roles like dental assistants and pathology collectors
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SCHADS: Proposed classification restructure to address undervaluation
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Indigenous Health Workers: Proposed increases for therapists and dental assistants
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Children’s Services: Up to 27.8% in proposed increases, in addition to the recent 15% rise
➡ Stakeholder conferences commenced with further consultations ongoing.
🔍 Broader Workplace Changes Confirmed
Paid Parental Leave
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From 1 July 2025, paid parental leave increases to 24 weeks (120 days)
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More flexible leave-sharing and reserved days for partners
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Superannuation will now be paid on top of government-funded leave
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First super payments to be made from July 2026 (paid as lump sum + interest)
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Right to Disconnect
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Becomes law for small businesses from 26 August 2025
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Employers must update policies and provide clear communication protocols
📢 Proposed Legislative Reforms
Although not yet law, several significant reforms are likely to progress through Parliament. These include:
Anti-Competitive Practices (from 2027)
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Bans on non-compete clauses, no-poach agreements, and wage-fixing arrangements
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Applies to workers earning under the high-income threshold (currently $175,000)
Portable Long Service Leave
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A national universal scheme is proposed to support casual and gig workers
Support for Women in the Workforce
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Expansion of the Building Women’s Careers program
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Part of Labor’s $22.7B Future Made in Australia initiative
Payday Superannuation
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From 1 July 2026, super must be paid at the same time as wages
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Draft legislation consultation ended in April 2025
National Labour Licensing Scheme
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Aims to harmonise differing state systems into a uniform national framework
Statutory Protection of Penalty Rates
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Labor proposes to legislate protections to prevent FWC from reducing penalty rates in awards
Public Sector Employment & Small Business Support
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Increase in public sector jobs to reduce external consultant reliance
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20-day payment terms for government contracts to ease cash flow for small businesses
💸 Tax and Financial Measures
Confirmed and Proposed:
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$1000 Instant Deduction for work-related expenses (from 2026–27)
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Instant Asset Write-Off extended to 30 June 2026
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20% HECS-HELP Debt Reduction from 1 June 2025
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Small Income Tax Cuts:
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From 1 July 2026, lowest rate drops to 15%, then to 14% the following year
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$150 Energy Rebate for households and small businesses through to end of 2025
📋 What Should Business Owners Do Now?
⚠️ Many changes are confirmed, but several are still making their way through Parliament and may evolve. It’s important to stay ahead of the curve.
Here’s what we recommend:
✅ Review and update HR policies and employment contracts
✅ Prepare for award amendments and upcoming compliance deadlines
✅ Consult your HR or legal advisor before making structural or contractual changes
✅ Educate your leaders and team on their new rights and obligations
✅ Factor super, parental leave, and payroll changes into financial planning
Need help preparing your business for these changes? Reach out to the Harrisons team today—we’re here to support you through reform with confidence and clarity.
Claire Harrison is the Founder and Managing Director of Harrisons, a flourishing HR consulting business that sprouted in 2009 from Claire’s passionate belief that inspiring leaders and superstar employees are the key success factor to any business. With over 20 years’ experience, Claire has worked as a HR Director of multi-national organisations, as a Non-Executive Board Director, and a small business owner. Claire’s corporate career includes working with companies such as BHP, Westpac, Fonterra and Mayne Nickless.
