Major Australian Policy Changes 2025: A Complete Breakdown of New Laws and Regulations

Major Welfare Payment Adjustments Aligned with CPI

The start of 2025 brings significant changes to welfare payments in Australia, reflecting the government’s efforts to address the rising cost of living.

All major welfare payments have been adjusted to align with the Consumer Price Index (CPI).

This alignment aims to provide much-needed financial relief to the most vulnerable Australians by ensuring their payments keep pace with inflation.

Youth Allowance and Carer Allowance Increases

Youth Allowance
Youth Allowance recipients will see an increase ranging from $15 to $30.60 per fortnight, depending on their family situation.

The maximum rate will now be $845.80. Additionally, the parental income test threshold will rise by $2555 per annum, setting it at $65,189.

These changes are designed to help young Australians gain better financial stability as they pursue education or training.

Carer Allowance
Carers will also benefit from these adjustments.

The Carer Allowance will increase by $5.80 per fortnight, bringing the new rate to $159.30.

This boost aims to support the essential contributions of over 600,000 carers who provide critical care for individuals in need.

Changes to ABSTUDY and Disability Support Pension Rates

ABSTUDY
ABSTUDY recipients, specifically those engaged in higher education such as Masters or Doctorate programs, will experience a substantial increase.

Their payments will jump by $54, reaching a new rate of $1285.40 per fortnight. This hike is intended to further encourage and support their academic pursuits.

Disability Support Pension
The Disability Support Pension will see increases across different groups.

These adjustments are part of the government’s commitment to ensuring that Australians with disabilities receive the necessary support to maintain a decent standard of living.

The introduction of these changes highlights the government’s dedication to easing financial pressures for those on welfare.

As these updates take effect, they will set the stage for further regulatory and reformative measures throughout the year.

New Wage Theft Penalties and Worker Protections

Starting January 1, 2025, deliberate wage underpayment by employers will be considered a criminal offense.

This major policy change aims to protect employees from exploitative practices and ensure they receive their rightful earnings.

Employers who intentionally underpay wages will face severe penalties, including imprisonment for up to 10 years and fines reaching $7.825 million for companies.

This sends a powerful message that wage theft will not be tolerated and gives workers greater security and trust in their workplaces.

Criminal Penalties for Violations

The new legislation introduces stringent penalties for employers found guilty of wage theft:

• 👤 Individuals: Up to 10 years in prison.

• 🏢 Companies: Fines up to $7.825 million.

This strong stance aims to curb wage theft by making it clear that such practices have severe consequences.

Exemptions for Small Businesses

Recognizing the unique challenges small businesses face, the government has provided an exemption for businesses with fewer than 15 employees.

These businesses are not subject to criminal prosecution for wage theft as long as they adhere to a voluntary small business wage compliance code.

This code, still being finalized, aims to provide clear guidelines to help small businesses avoid unintentional underpayments.

Enhancing Worker Rights

These reforms are part of the broader “Closing Loopholes” package introduced by the Labor government.

The new standards mandate:

• ⚖️ Better Penalties for non-compliance with wage laws.

• 🔄 Reversed Burden of Proof, placing the onus on employers to disprove wage theft allegations.

This approach is designed to hold employers accountable and ensure fair compensation for all workers.

With these measures set to take effect, industries across Australia must swiftly adapt to comply with the updated guidelines to foster a safer and fairer working environment.

This chapter marks a significant shift towards better labor protections, underlining the government’s commitment to workers’ rights.

As the focus on enhanced protections gathers momentum, the subsequent changes in other critical areas of public policy will continue to reflect these priorities.

Healthcare System Changes

Updates to Medicare Safety Net Thresholds

Starting in 2025, the Medicare Safety Net thresholds are set to rise, impacting out-of-pocket expenses for Australian patients.

These adjustments are intended to align with inflation and ensure healthcare remains accessible and sustainable.

Original Medicare Safety Net (OMSN)

The threshold for the Original Medicare Safety Net (OMSN) will increase from $560.40 to $576.

This marks the point at which Medicare begins to reimburse 100% of the schedule fee for out-of-hospital services.

Patients are still required to pay the gap expenses until they reach this threshold. This annual adjustment aims to keep up with inflation, ensuring the system remains both sustainable and accessible to patients.

Extended Medicare Safety Net (EMSN)

For those facing higher medical costs, the EMSN provides additional relief.

In 2025, the EMSN threshold will rise from $2,544.30 to $2,615.50.

Once this threshold is exceeded, Medicare will cover 80% of the subsequent out-of-pocket costs for out-of-hospital services.

This helps mitigate the financial burden for patients requiring extensive medical care.

A concessionary EMSN threshold also exists for low-income families and individuals receiving the Family Tax Benefit A.

This threshold will increase from $811.80 to $834.50 in 2025, ensuring vulnerable groups receive support earlier in their healthcare spending.

These changes reflect the government’s commitment to aligning healthcare financing with economic realities, balancing rising costs with sustainable support.

Travel and Documentation Updates

Come January 1, 2025, Australians will face increased costs and new requirements for travel documentation.

In light of these changes, it’s important to be prepared and understand the new guidelines.

Passport Fee Increases

Starting next year, obtaining either a 10-year or 5-year passport will become slightly more expensive.

The price for a 10-year passport will increase by approximately $11.

For younger individuals under 16 and those over 75 opting for a 5-year passport, the cost will go up by about $6. While these hikes are modest, they reflect adjustments tied to inflation and other administrative costs.

UK Electronic Travel Authorisation Requirement

From January 8, 2025, Australians traveling to the UK for less than six months will need an Electronic Travel Authorisation (ETA), akin to the US ESTA system.

This new visa waiver system, which comes with a fee of around $20 (£10), requires an online application completed prior to travel.

This change marks a significant shift for Australians who previously enjoyed travel to the UK without such formalities. The ETA aims to enhance security and streamline the entry process for travelers to the UK.

Timeline and Cost Implications for Travelers

The timeline for these changes is crucial. Australians planning to travel to the UK or renew passports should factor in these new requirements and costs into their plans.

The implementation of the ETA and the increased passport fees can have an impact on travel budgets. It’s advisable to apply for these documents well in advance to avoid any travel disruptions.

As 2025 unfolds with these adjustments, it is essential to remain informed and proactive. Keeping abreast of these updates will ensure a smooth transition into the new year’s travel regulations.

Property and Foreign Investment Regulations

Increased Foreign Resident Capital Gains Withholding Rate

Beginning January 1, 2025, the Australian Taxation Office will increase the Foreign Resident Capital Gains Withholding (FRCGW) rate from 12.5% to 15%. This adjustment is designed to ensure that foreign residents selling property in Australia meet their tax obligations.

By increasing the withholding rate, the government aims to curb tax avoidance and ensure foreign sellers contribute fairly to the country’s revenue.

New Clearance Certificate Requirements

Alongside the withholding rate increase, there is a significant change in the clearance certificate process for property sales.

From 2025 onwards, all property sellers—regardless of their residency status—must provide a clearance certificate from the ATO to declare they are not foreign residents for tax purposes.

If a seller does not have this certificate, the buyer must withhold a portion of the sale price and remit it to the ATO. This requirement aims to streamline tax compliance and reduce the risk of tax evasion in property transactions.

Impact on Property Transactions

The new regulations impact both foreign and domestic property transactions in several ways:

• 📝 Sellers must now apply for clearance certificates well in advance, as the approval process can take up to 28 days. Although most certificates are issued within a few days, having this certificate ready ensures smooth sales and prevents delay-related complications.

• 🌏 Foreign residents must file a tax return at the end of the financial year to declare their Australian assessable income, which includes capital gains from sold assets. If any amount is withheld at the time of sale, sellers will receive a refund after processing their next income tax return.

• 🇦🇺 These changes reinforce Australia’s commitment to fair taxation practices and transparency in all property sales, while highlighting the importance of early preparation and heightened awareness for all involved parties.

By adapting to these new measures, Australians can ensure their property transactions adhere to updated standards and contribute to an equitable and robust tax system.

Industry Safety and Health Measures

Engineered Stone Imports Ban

Australia is enacting critical measures in 2025 to enhance worker health protections, starting with a complete ban on the importation of engineered stone from January 1, 2025.

This stringent regulation follows the earlier prohibition on the domestic use, supply, and manufacture of engineered stone, effective from July 1, 2024.

The key concern driving this ban is the exposure of workers to respirable crystalline silica, a hazardous substance linked to serious health issues like silicosis and other lung diseases.

As stated by Minister Tony Burke, “It will be illegal to bring these products into the country at all,” ensuring that no one’s health is compromised due to their work environment.

Livestock Traceability with Electronic Identification Tags

A major shift in biosecurity and livestock traceability is also underway in 2025, with the introduction of mandatory electronic identification tags (eID) for all sheep and goats born in Australia.

By January 1, 2025, it will be mandatory to fit these animals with eID tags before they leave their property of birth. This measure, supported by state and commonwealth agriculture ministers, aims to strengthen biosecurity and traceability during disease outbreaks.

New South Wales (NSW), which has lagged behind, will join other states by providing eID tags at a nominal cost of $1 to farmers, building on Victoria’s pioneering efforts since 2017.

ATM Placement Restrictions in NSW Gaming Venues

In an effort to mitigate gambling-related harm, new restrictions on ATM placements will be enforced in New South Wales (NSW) starting January 1, 2025.

According to the new rules, ATMs must be situated at least five meters away from any gaming area entrance or exit within hotels and clubs.

Additionally, these venues must ensure that gaming machines and jackpot signs are not visible from the ATM area.

Venues that cannot comply due to safety concerns can apply for an exemption from Liquor and Gaming NSW.

These regulations reflect the ongoing commitment to public health, ensuring a safer and healthier environment for all.

Stay informed about these regulatory changes as they unfold, impacting worker safety, biosecurity, and public health practices across Australia.