The 2025-26 financial year has officially begun, and if you didn’t get around to updating your HR documents, contracts, or wage rates before 30 June, you’re not alone. Many businesses are still catching up, especially with multiple changes taking effect from 1 July.
But it’s not too late to get things in order. Here’s a practical HR compliance checklist to help you start the year right, and avoid risks like underpayment, unfair dismissal claims, or Fair Work audits.
1. Apply the New Minimum Wage Rates
- From 1 July 2025, the National Minimum Wage and all Award minimum wages have increased by 3.5%.
- Check the updated award rates and ensure your payroll reflects them.
- If you pay a flat rate or offer annual salaries, you may need a Better Off Overall Test (BOOT) to ensure employees are still receiving all their minimum entitlements.
2. Update Superannuation Guarantee to 12%
Also effective from 1 July 2025, the Superannuation Guarantee rate has increased from 11.5% to 12%.
Ensure you:
- Update your payroll software to reflect the new rate.
- Review employee contracts and salary packages. If superannuation is included in a total remuneration figure, you’ll need to adjust base pay to keep take-home amounts consistent.
Failing to meet the new rate can result in superannuation guarantee charge liabilities, which include penalties and interest on top of missed contributions.
3. Check and Update Employment Contracts
Every employee, whether casual, full-time or part-time, should have a written employment contract.
- Check that each employee has a written contract.
- Confirm that contracts reflect current job titles, classifications, pay rates, and employment types (e.g. casual, part-time).
- Include correct award references and pay structures, especially for flat rate or salaried staff.
This is especially important in light of recent changes to how employee versus contractor status is assessed. Under federal law, clear, up-to-date contracts are your first line of defence in any dispute.
4. Leave Balances and Accruals
Leave liabilities can quietly accumulate into a financial and legal risk if not managed proactively. Start by:
- Checking that leave balances are accurately recorded.
- Verifying that accruals are being calculated correctly based on employment type and hours worked.
- Reviewing personal leave, annual leave, long service leave, and unpaid leave records.
Use this opportunity to ensure you’re meeting record-keeping obligations under the Fair Work Act.
5. Review Workplace Policies
Your internal HR policies should reflect both current legislation and your workplace culture. Policies to review include:
- Code of conduct.
- Leave entitlements.
- Bullying and harassment.
- Drug and alcohol.
- Grievance and complaint handling.
- Performance and misconduct procedures.
Once updated, ensure these are circulated to staff and that signed acknowledgments are kept on file.
6. Follow Up on Probation and Performance
If you hired staff in the first half of the year, their probation periods may be ending now, don’t miss the window for formal review.
Set up:
- Probation review meetings to assess suitability for ongoing employment.
- Performance check-ins or annual appraisals, even if informal, to set expectations and support engagement.
7. Verify Employee Details and Right to Work
Take the opportunity to check your employee records and confirm you have the required documentation:
- Tax File Numbers.
- Superannuation fund choice forms.
- Emergency contact information.
- Visa evidence for workers on temporary or restricted visas.
- Signed contracts and policy acknowledgments.
Keeping complete, up-to-date records isn’t just best practice, it’s legally required.
8. Plan Ahead for the Year
Use this opportunity to schedule upcoming HR tasks like:
- Inductions for new hires.
- Policy reviews and updates.
- Staff training.
- Award and pay reviews.
Need Help?
Starting the financial year without updated pay rates, correct contracts, or compliant HR systems could expose your business to underpayment claims and penalties. At ProcessWorx, we are committed to helping businesses strengthen their HR compliance. If you’d like to learn how ProcessWorx can assist with Human Resources or Work Health & Safety, please contact us on 08 9316 9896 or enquiries@processworx.com.au. Also watch an Introduction to ProcessWorx.
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