- Published
The new Federal Budget is out, and there are a few changes that employers need to know about. Whether it’s workforce planning, workplace safety, or employee compensation, changes are coming that could affect how you manage your team and plan for the future.
Here’s a breakdown of the key changes relevant to employers, and how they may affect your business:
Non-Compete Clauses
Non-compete clauses, which restrict employees from joining competitors, contacting customers or starting their own business after leaving a company, are set to be banned for most employees earning under $175,000 a year starting from 2027.
Research suggests that the proposed changes could increase wages for affected workers by as much as 4 per cent, or approximately $2,500 annually for those earning median wages. The Budget highlighted this as part of broader efforts to improve job mobility and create fairer workplaces.
How Are Employers Impacted?
If this goes ahead, employers will need to rethink how they retain staff and protect business interests. It’ll be more important than ever to focus on strong culture, competitive pay, and clear employment contracts, think confidentiality, IP protection, and notice periods. Depending on how the law passes, existing employment contracts will likely need updating too.
Stronger Laws to Prevent Workplace Sexual Harassment
The government is reinforcing its commitment to safer workplaces, building on the Respect@Work reforms. Employers will need to act proactively, not just reactively, to prevent harassment in the workplace and comply with the National Code of Practice (alongside the existing Queensland Code of Practice).
How Are Employers Impacted?
Employers will need to review their policies, training, and reporting mechanisms to ensure they meet the higher standards set by the government. Proactive action and regular staff training will be necessary to stay compliant with these requirements. Being reactive won’t cut it. Contact our team about planning, policies, training and other strategies.
Support for Women in Male-Dominated Industries
The government is investing in measures to improve safety and inclusivity in male-dominated industries. This includes ensuring that facilities and amenities are adequate for the health, safety, and dignity of women and parents in male-dominated industries and workplaces.
How Are Employers Impacted?
If your business operates in male-dominated sectors, now is the time to review your workplace culture, facilities, and policies. At Edwards HR, we encourage you to assess your approach to inclusivity and ensure your workplace is welcoming and supportive for all employees.
Workforce Planning
With unemployment expected to remain low at 4.25% in 2025-26, employers will face increased competition for talent, particularly in sectors facing skills shortages. Businesses will need to be strategic in how they recruit and retain talent.
How Are Employers Impacted?
Hiring will stay competitive, especially for skilled roles. Focus on retaining the team you have and building internal capability. Workforce planning, upskilling, and succession planning should be priorities. Contact our team to discuss succession planning, and recruitment and retention strategies.
Growing Wages
The government is investing in wage increases across key sectors:
- Aged Care: $2.6 billion in additional funding from 1 March 2025, as part of a broader $17.7 billion package.
- Childcare: $3.6 billion to fund a 10% pay rise in December 2024 and a further 5% in December 2025 for early childhood educators.
How Are Employers Impacted?
These increases will set new benchmarks and expectations, especially in low-paid, predominantly female, high-demand sectors. If you operate outside these sectors, you may still feel pressure to review wages to stay competitive and attract talent. Keep an eye out for updates on this one.
Energy Bill Relief
The government will extend the Energy Bill Relief Fund to provide direct financial assistance to households and small businesses. The fund allocates $1.8 billion to help ease the rising energy costs for small businesses across Australia.
How Are Employers Impacted?
This relief will (hopefully) help reduce some of your operational costs, but it’s essential to stay proactive in managing energy consumption and other expenses. We recommend reviewing your energy contracts and looking into energy-saving measures to keep your costs down in the long term.
Education and Skills Development
The government is investing heavily in education and skills training, particularly in areas with high demand for skilled workers. This includes:
- Permanent Free TAFE: Free Technical and Further Education (TAFE) courses will be offered permanently in sectors facing skill shortages, such as construction, manufacturing, and digital technologies.
- Apprenticeship Support: A $627 million investment in a new apprenticeship program aimed at boosting skills in energy, construction, and other high-demand sectors.
How Are Employers Impacted?
This is a win for businesses with skill gaps. Look into partnerships with TAFE and apprenticeship programs to strengthen your pipeline and reduce hiring costs.
Superannuation Compliance
The Australian Taxation Office (ATO) will receive additional funding to extend and expand tax compliance activities, with a focus on superannuation obligations. This will include more audits and investigations into businesses’ adherence to superannuation obligations.
How Are Employers Impacted?
Employers should ensure they are compliant with superannuation obligations to avoid penalties. Regular audits and staying updated on legislative changes will be crucial in maintaining compliance. Remember that knowingly underpaying employees became a criminal offence from 1 January 2025, so there’s a lot to be aware of.
Industrial Relations (IR) Changes Continue
The government is rolling out ongoing industrial relations reforms, focusing on wage transparency, better protections for workers, and dispute resolution processes.
How Are Employers Impacted?
If you engage contractors, gig workers or casuals, these changes could affect you. Watch this space for updates and be ready to adapt your contracts and HR practices. Be sure to check out Edwards HR’s Short Courses so your team is up to date and your business is protected.
More Key Announcements
- Wage increases for low-paid workers in several sectors in each of the last three Annual Wage Reviews
- $17.1 billion over 10 years for major infrastructure projects, creating more jobs across Australia.
- Permanent Free TAFE with 100,000 places annually from 2027.
- Support for small businesses, measures aimed at easing pressure and levelling the playing field.
- National occupational licensing for electrical trades to allow electricians to move to where they’re needed most (moving away from state-based model).
- Tax cuts for every Australian taxpayer.
- $20 million for the Buy Australian Campaign.
- Up to $3 billion to complete the National Broadband Network.
- Increased bulk billing, 9 out of 10 GP visits will be bulk-billed by 2030.
- Student debt reduction, a 20% reduction and a fairer repayment system.
What Next?
As we head into the election period, the 2025 budget signals potential shifts in the economic policy. While the immediate impact on HR, payroll, and compliance may seem moderate, it’s important to stay prepared for these changes.
Get in touch with our team today to discuss how we can help.
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