Changes for businesses from 1 January 2025

From 1 January 2025, intentional underpayment of wages by employers will become a criminal offence.

Employers will commit an offence if:

• they’re required to pay an amount to an employee (such as wages), or on behalf of or for the benefit of an employee (such as superannuation) under the Fair Work Act, or an industrial instrument
• they intentionally engage in conduct that results in their failure to pay those amounts to or for the employee on or before the day they’re due to be paid.

The penalties for companies:

• if the court can determine the underpayment, the greater of 3 times the amount of the underpayment and $8.25 million, or
• if the court can’t determine the underpayment, $8.25 million.

The penalties for individuals:

• maximum of 10 years in prison
• if the court can determine the underpayment, the greater of 3 times the amount of the underpayment and $1.65 million, or
• if the court can’t determine the underpayment, $1.65 million.

For small businesses, a Voluntary Small Business Wage Compliance Code (Voluntary Code) will be established. Compliance with the Voluntary Code means a small business won’t be criminally prosecuted if they underpay their employees. The Voluntary Code is being developed.

Some awards will have new definitions and minimum pay rates for entry-level classifications from 2025.

The key changes happening for some awards include:

• introductory classifications can only apply for a limited time
• new rules and minimum pay apply for introductory rates.

From 1 January 2025, many large Australian businesses and financial institutions will need to prepare annual sustainability reports containing mandatory climate-related financial disclosures.

From 1 January 2025, a ban on the importation of engineered stone benchtops, panels and slabs will be implemented.

The ban on the manufacture, supply, processing and installation of engineered stone benchtops, panels and slabs came into effect earlier this year.