Wages and Super Just Went Up – Here’s What Tradie Business Owners Need To Know

If you’re running a growing trade business, you’ve probably already heard the news: as of 1 July 2025, the minimum wage and superannuation guarantee have both increased. And if you’re like many of the business owners I coach, you’re asking the right question: what does this mean for my business?

Let me say this upfront: these changes don’t have to be a setback. In fact, with the right approach, they can be an opportunity to tighten your operations, strengthen your team, and reinforce your position as a professional, profitable business.

As a tradie business coach, I partner with established tradespeople and trades businesses across Australia. My clients include builders, electricians, plumbers, landscapers, HVAC contractors, and other skilled trades professionals. Most of these businesses already have staff and subcontractors on their team, and they generate annual turnovers ranging from one million to ten million dollars. They are focused on growing their businesses in a sustainable and steady manner. If this sounds like your situation, then this article is definitely for you.

What’s Changed (And Why It Matters)

Starting from the 1st of July 2025, the national minimum wage in Australia has increased to twenty-four dollars and ninety-five cents per hour, or a total of nine hundred forty-eight dollars and ninety cents per week for employees who work full time. At the same time, the superannuation guarantee contribution rate has also gone up from eleven point five percent to twelve percent.

These changes will come into effect from the first full pay period that begins on or after the 1st of July. To clarify, if your pay cycle starts on a Monday, then the updated rates will be applicable from that week.

You might be thinking, “We already pay our staff above the award rate, so these new minimums probably do not impact us.” This is a common belief, but it is important to double-check your payroll data. I advise my clients to review all employee classifications and ensure that their current pay rates still meet or exceed the minimum requirements set by the relevant award or enterprise agreement.

Who’s Covered (And Who’s Not)

In the trades and construction sector, the majority of employees who work “on the tools” are covered by the Building and Construction General On-site Award or a trade-specific award such as the Electrical Award or the Plumbing Award. Administrative staff are typically covered by the Clerks – Private Sector Award.

Subcontractors are not directly impacted by these changes, but it is important to consider the ripple effects. If your subcontractors are increasing their rates to compensate for higher costs, you will need to include these changes in your quoting and job costing processes.

As a tradie business coach, I often recommend to business owners that they take this time as an opportunity to review all their employment arrangements. Are your team members correctly classified according to their roles? Are you confident that your subcontractor relationships are compliant with the guidelines set by the Australian Taxation Office and Fair Work Australia? Asking these sorts of questions can help protect your business from potential issues in the future.

What You Need To Do Now

Here’s what I recommend to my clients when changes like this come into effect:

Update your payroll system

Make sure your accounting software or payroll service provider has the new wage and superannuation contribution rates correctly loaded into their system. If you are using popular platforms such as Xero, MYOB, or QuickBooks, these systems typically update the rates automatically. However, it is still a good idea to double-check that the updates have been applied correctly to ensure compliance with current regulations.

Review your charge-out rates

If your labour costs have increased, your pricing needs to reflect that. I recently worked with a concreting small business that had not updated their rates for over eighteen months. After recalculating their true labour burden, including superannuation, leave loading and overheads, we adjusted their quoting model. As a result, their gross margins improved by six per cent without losing a single job.

Communicate with your team

Let your employees know about the upcoming changes to their payslips and superannuation contributions. This is a good opportunity to reinforce your professionalism and demonstrate that you are diligent in fulfilling your legal obligations and maintaining transparent communication with your staff.

Check your employment contracts

If you are offering a total package salary that includes superannuation, you might need to increase the base salary rate to make sure that the superannuation component now equals 12 per cent of the total package. I have seen instances where businesses have been caught out in this regard, particularly when it involves salaried administrative staff.

Turning Compliance Into Competitive Advantage

Here’s the thing: every business in your industry is facing the same changes. What really sets the top performers apart is how they respond to these challenges.

One of my clients, a residential builder based in regional Victoria, used this year’s increase in wages as an opportunity to completely overhaul their job costing system. We developed a new quoting template that took into account the updated award rates, superannuation contributions, and even allowances for delays caused by wet weather. The result has been impressive. They are now quoting jobs more confidently, winning larger and more profitable projects, and better protecting their profit margins.

Another client, a commercial painting business, saw the superannuation increase as a good reason to review and modify their team’s employment arrangements. They decided to move two long-standing subcontractors onto the payroll, which has given them greater control over scheduling and the quality of work delivered. This change has proven to be a real game-changer in how they manage their projects.

By taking proactive steps like these, you can position your business for long-term success. You will avoid underquoting, minimise risks related to compliance, and build a strong reputation as a professional operation that adheres to industry standards and regulations.

A Word On Mindset

I understand that it’s easy to view wage and superannuation increases as simply another expense. However, I encourage you to look at it from a different perspective.

These changes are an essential part of running a genuine business. They serve as a sign that your team is expanding, your responsibilities are broadening, and your business is maturing. This is definitely something to be proud of.

As a trade business coach in Australia, I often remind my clients that growth is not only about increasing revenue. It’s about creating a business that is sustainable, capable of scaling up, and respected within the local market. Keeping up with compliance requirements is an important part of that journey.

Final Thoughts

If you’ve read this far, you’re obviously someone who takes your business seriously, which is exactly the kind of mindset that can lead to success in the trades industry here in Australia.

To recap the key points, the minimum wage is now $24.95 per hour, and superannuation contributions are at 12 per cent. It’s important to check your award classifications and pay rates to ensure compliance. You should also update your payroll and quoting systems accordingly.

This period presents a great opportunity to review and improve your operations and margins, making your business more efficient and profitable.

If you’re unsure where to start or want to ensure you’ve covered all necessary aspects, get in touch. At Tenfold Business Coaching, we specialise in helping tradies who are ready to grow their business with confidence.

Whether you’re a builder, plumber, electrician, or landscaper, we can assist you in navigating these changes and emerging stronger on the other side. Let’s work together to make this year your most profitable yet.