As the calendar flips to 2025, Australians are waking up to a host of new laws, policies, and reforms that promise to shape the year ahead. From long-awaited boosts to Centrelink payments to groundbreaking rules aimed at curbing climate change, the legislative landscape is shifting in ways both big and small. Here’s your guide to the most significant changes taking effect on January 1st.
Centrelink Payments Rise with Inflation
After years of stagnant allowances, Centrelink recipients are finally getting some relief in the form of payment increases tied to the inflation rate. Youth allowance, Austudy, and carer allowance are among the benefits set to grow, with single youth allowance recipients over 18 living at home receiving an extra $17.30 per fortnight, bringing their total to $477.10.
The long-overdue adjustments come as welcome news to struggling students, job seekers, and carers who have seen their purchasing power erode in the face of rising living costs. With payments now pegged to inflation, there’s hope that the social safety net will provide more meaningful support in the years ahead.
Criminal Penalties for Wage Theft
Employers who deliberately underpay their workers now face not just hefty fines, but potential jail time under strict new laws criminalizing wage theft. Companies caught engaging in the practice could be fined up to $7.8 million, while individuals may face $1.6 million in penalties and a decade behind bars. The provisions apply to underpayments made on or after January 1st, sending a clear message that shortchanging employees will no longer be tolerated.
Engineered Stone Imports Banned
In a bid to protect workers from the deadly lung disease silicosis, Australia is banning the import of engineered stone benchtops, slabs, and panels as of January 1. The move follows a domestic ban on the use, supply, and manufacture of engineered stone products that went into effect in July 2024, after silica dust generated during cutting and installation was linked to a surge in silicosis cases.
Silicosis is an entirely preventable disease that has already claimed far too many lives. This import ban, combined with last year’s domestic restrictions, will help ensure that no more workers are exposed to this deadly hazard.
– Dr. Malcolm Sim, Monash University epidemiologist
Medicare Safety Net Thresholds Climb
The amount patients must spend on out-of-hospital medical costs before qualifying for higher Medicare rebates is increasing in 2025. The general Medicare safety net threshold rises from $560.40 to $576, while the extended threshold jumps from $2,544.30 to $2,615.50 for most patients and $811.80 to $834.50 for concession card holders.
The indexed thresholds help ensure the safety net keeps pace with healthcare inflation, but they also mean patients will have to shoulder more of the cost burden before extra support kicks in. With out-of-pocket expenses already a major barrier to care, advocates worry the higher limits will force more Australians to delay or forgo necessary treatment.
Raises for Aged Care Workers
Aged care staff will see a much-needed pay bump this year, with raises for direct care workers ranging from 3% to 13%. Indirect care workers like cooks and cleaners will also receive increases of 3-7%. The wage hikes, to be rolled out in two stages on January 1st and October 1st, aim to stem the sector’s worsening staffing crisis and ensure older Australians receive higher-quality care.
With low pay fueling high turnover and widespread shortages, the aged care royal commission identified boosting wages as critical to attracting and retaining skilled workers. But providers warn the increases alone won’t be enough, with many facilities already struggling to stay afloat.
Mandatory Climate Reporting Begins
Large companies will now be required to disclose climate-related risks and opportunities in their annual financial reports, making Australia the first country to mandate such reporting. The rules, which apply to the 2024-25 fiscal year for most firms, are designed to give investors greater insight into how businesses are preparing for the low-carbon transition.
- Covered firms must report on governance, strategy, risk management, and targets and metrics related to climate change
- Disclosures must align with the Task Force on Climate-related Financial Disclosures (TCFD) framework
- Smaller companies may voluntarily report under the same standards
While the rules have broad support from investors and the business community, some worry the rapid rollout will pose challenges, particularly for firms with complex global operations. The government is providing guidance and transition relief to help companies adapt.
Vehicle Emissions Capped
After years of lagging other developed nations, Australia is finally adopting fuel efficiency standards to drive the shift to cleaner cars. As of January 1st, a new cap on carbon dioxide emissions applies to all new light vehicles, with the limits set to tighten gradually through 2030.
The standards, pegged to those in the US, aim to spur automakers to deliver more hybrids, electric vehicles, and other low-emissions options. Currently, EVs and plug-in hybrids make up just 2% of new car sales in Australia, compared to over 10% in similar markets. Efficiency advocates say the rules are an important step, but more aggressive targets and incentives are needed to accelerate the transition.
Other Notable Changes
- Poker machines in NSW hotels and clubs must be located at least 5 meters from ATMs
- New electrical safety rules in Queensland cover work near live equipment and in roof spaces
- Victoria extends its vacant residential land tax to regional properties
- South Australia scraps income test for household cost-of-living concessions
As these examples show, the policy changes taking effect this January are both broad in scope and diverse in their potential impacts. Some offer much-needed relief, while others demand greater transparency and accountability from those in power. Collectively, they reflect a nation striving to craft a more sustainable and equitable future – even as the path forward remains hotly contested. As the new year unfolds, Australians will be watching closely to see how these shifts play out in their own lives and communities.
Aged care staff will see a much-needed pay bump this year, with raises for direct care workers ranging from 3% to 13%. Indirect care workers like cooks and cleaners will also receive increases of 3-7%. The wage hikes, to be rolled out in two stages on January 1st and October 1st, aim to stem the sector’s worsening staffing crisis and ensure older Australians receive higher-quality care.
With low pay fueling high turnover and widespread shortages, the aged care royal commission identified boosting wages as critical to attracting and retaining skilled workers. But providers warn the increases alone won’t be enough, with many facilities already struggling to stay afloat.
Mandatory Climate Reporting Begins
Large companies will now be required to disclose climate-related risks and opportunities in their annual financial reports, making Australia the first country to mandate such reporting. The rules, which apply to the 2024-25 fiscal year for most firms, are designed to give investors greater insight into how businesses are preparing for the low-carbon transition.
- Covered firms must report on governance, strategy, risk management, and targets and metrics related to climate change
- Disclosures must align with the Task Force on Climate-related Financial Disclosures (TCFD) framework
- Smaller companies may voluntarily report under the same standards
While the rules have broad support from investors and the business community, some worry the rapid rollout will pose challenges, particularly for firms with complex global operations. The government is providing guidance and transition relief to help companies adapt.
Vehicle Emissions Capped
After years of lagging other developed nations, Australia is finally adopting fuel efficiency standards to drive the shift to cleaner cars. As of January 1st, a new cap on carbon dioxide emissions applies to all new light vehicles, with the limits set to tighten gradually through 2030.
The standards, pegged to those in the US, aim to spur automakers to deliver more hybrids, electric vehicles, and other low-emissions options. Currently, EVs and plug-in hybrids make up just 2% of new car sales in Australia, compared to over 10% in similar markets. Efficiency advocates say the rules are an important step, but more aggressive targets and incentives are needed to accelerate the transition.
Other Notable Changes
- Poker machines in NSW hotels and clubs must be located at least 5 meters from ATMs
- New electrical safety rules in Queensland cover work near live equipment and in roof spaces
- Victoria extends its vacant residential land tax to regional properties
- South Australia scraps income test for household cost-of-living concessions
As these examples show, the policy changes taking effect this January are both broad in scope and diverse in their potential impacts. Some offer much-needed relief, while others demand greater transparency and accountability from those in power. Collectively, they reflect a nation striving to craft a more sustainable and equitable future – even as the path forward remains hotly contested. As the new year unfolds, Australians will be watching closely to see how these shifts play out in their own lives and communities.
