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As we enter the New Year, a wave of changes is set to impact Australians.

From new workplace laws to welfare payment hikes, here are some key changes taking effect on 1 January:

Wage theft penalties
Employers who deliberately underpay their employees now risk facing criminal charges under laws that come into effect on 1 January.
Under the the new wage-theft laws — part of Labor’s suite of Closing Loopholes reforms — companies could be fined up to three times the underpayment amount, or $7.82 million if the amount of underpayment can’t be determined.
Individuals could face up to 10 years in prison and up to $1.56 million in fines.

Small businesses complying with the new Voluntary Small Business Wage Compliance Code will be exempt from penalties for unintentional underpayment.

ADF opens to foreign nationals

Residents from Canada, the United Kingdom, and the United States will be able to fast-track their Australian citizenship if they join the Australian Defence Force (ADF).
Applicants should have lived in Australia for at least 12 months before applying.
The change, effective from 1 January, is expected to lead to a rise in applications and bolster ADF numbers, which is looking to attract 350 people over the 2024-25 financial year.
Successful applicants would be able to apply for citizenship after 90 days of service.

Welfare payments growth
Over a million Australians — but especially students — will benefit from a 1 January Centrelink payment increase, as Youth Allowance, Austudy, ABSTUDY, and the Youth Disability Support Pension are raised to keep pace with inflation.
Youth Allowance and Austudy payments will increase by up to $30.60 a fortnight.
Australians receiving ABSTUDY who are doing a Master’s degree or a PhD will get an extra $54 a fortnight.
Those on the Disability Support Pension will receive an increase of up to $30.10 a fortnight.
Income thresholds will also rise, meaning people can earn more at work before their payments are cut.
More details can be found .

Passport fees

Australian passport prices will increase in 2025 due to regular annual indexation.
From 1 January, the cost of a standard 10-year Australian passport will hit $412, up $14 from 2024.

This would further solidify Australia’s status as having one of the most expensive passports in the world.

Banned debit card surcharges
From 1 January, Australians won’t face debit card surcharges when paying Commonwealth agencies like the Australian Taxation Office or Services Australia.

A broader review could see surcharges banned nationwide by January 2026.

Gambling harm minimisation

In NSW, ATMs and cash withdrawal facilities will no longer be allowed within 5m of hotel or club gaming areas.
They also won’t be allowed to be visible from gaming rooms or any entry areas.

Additionally, signage for gaming areas must not be visible from ATMs or entryways.

Mandatory climate reporting

From 1 January, large Australian businesses and financial institutions will be required to prepare annual sustainability reports under new regulations aimed at improving climate accountability.

Changes to entry-level work
New changes to entry-level work classifications will see changes in definitions and minimum wage requirements.
From 1 January, introductory classifications in awards (usually for the first stage of a job, like training and induction periods) will be limited to six months.
Employees must progress to higher classifications with increased pay once this period ends, based on demonstrated competencies.

This is expected to help prevent employees from being paid under the minimum wage.

Engineered stone ban

A ban on the importation of engineered stone bench tops, panels and slabs — commonly used for kitchen benches — will be implemented in the new year.
It comes after a ban on the manufacture, supply, processing and installation of engineered stone bench tops, panels and slabs came into effect earlier this year.

The material, which is commonly used for kitchen bench tops, was found to correspond with an uptick in lung diseases related to silica dust.

Foreign resident capital gains withholding (FRCGW) rules

Currently, any Australian resident (for tax purposes) selling a property must provide a clearance certificate to the buyer before settlement to avoid having 12.5 per cent withheld from a property sale over $750,000.

But from 1 January, the withholding rate will increase from 12.5 per cent to 15 per cent and the $750,000 property threshold will be removed, with the withholding rules applying to all property sales.

Centrelink medical exemptions
Starting 1 January, Centrelink will increase the maximum length for medical exemptions from 13 weeks to 24 months.

The change applies to those in select welfare recipient groups and will mean fewer trips to the doctor for medical certificates if you find you’re sick or injured and unable to work.

Onshore student visa applications

New student visa rules will require onshore applicants to provide a Confirmation of Enrolment (CoE) at the time of application.

This change aims to ensure a stronger commitment to study from prospective international students. Onshore applications without a CoE will now be deemed invalid.
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Closing the Gap PBS expansion

The Closing the Gap Pharmaceutical Benefits Scheme (PBS) Co-payment Program will expand to include all PBS medicines dispensed by public hospitals.

This expansion improves access to affordable medications for First Nations people living with, or at risk of, chronic disease.

Medicare updates
From 1 January, you’ll need to spend more on out-of-hospital medical expenses before qualifying for a higher rebate, which is increasing in line with indexation.
The Original Medicare Safety Net threshold will increase from $560.40 to $576, while the Extended Medicare Safety Net will rise to $2,615.50 for general recipients and $834.50 for concession holders.

The PBS co-payment will remain frozen for 2025. The co-payments are $31.60 for general patients and $7.70 for concessional patients.

Pay rise for aged care workers

Wage changes for several awards, including those working in aged care, will take effect on 1 January.
Minimum pay rates will increase for those on the Aged Care Award, Nurses Award, and the Social, Community, Home Care and Disability Services Award.

Aged Care Award workers will receive a 3 per cent increase to their minimum pay rate starting next year.

Health insurance extras reset

Many health insurance companies reset their limit for annual extras on 1 January.

Check with your health fund for details.

New vehicle efficiency standards
Any new cars sold in Australia will be subject to the New Vehicle Efficiency Standard.

The emissions of new cars will be capped under a credit scheme to incentivise companies to supply low-emissions vehicles under a credit scheme.

Short-stay levy in Victoria

From 1 January, Victorian property owners accepting accommodation bookings for less than 28 consecutive days will need to pay a levy.
The levy will be 7.5 per cent of the total booking fee.

Those renting out their principal place of residence will be excluded.

Land tax extended in Victoria

Victoria’s vacant residential land tax will be extended to properties in regional Victoria.
The tax requires owners to be taxed if a property remains empty for more than six months in a calendar year.

Some holiday houses will be exempt if used for at least four weeks a year.

Household concessions expanded in South Australia

South Australia will ditch the co-resident income assessment so more people will be eligible for greater cost of living relief.

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