What Beauty, Aesthetics and Wellness Businesses Need to Know After the 2025 Federal Election

Running a clinic, salon or spa, salon or spa is about more than services and results. It’s about people, responsibility and professionalism. And in today’s regulatory environment, protecting your business is not optional – it’s essential.  The re-election of the Albanese Government brings a powerful wave of industrial relations reforms that will reshape how you employ, manage, and lead your team. These aren’t hypothetical changes – they are confirmed developments, with real consequences for businesses like yours across Australia.

The first question business owner ask us is - What Happens If I Get It Wrong?

Here’s what the government have advised non-compliance can mean:

• Up to $93,900 fines per breach for businesses
• Up to $18,780 fines per breach for directors or managers
• Staff backpay claims – even from previous employees
• Fair Work investigations and public listing
• Union action and disruption
• Insurance and legal costs that could have been avoided

Not pretty and especially worrying while you are trying to navigate business challenges, staffing shortages and daily life as an aesthetic or beauty owner.  Here is where ABIC come in as a not-for-profit, with the sole purpose to help you, not to make a profit from you. ABIC Clinic, Salon and Spa Membership gives you access to legal, HR and industrial relations experts who are deeply embedded in the aesthetics, skin, beauty and wellness industries. We don’t just hand you a checklist – we work with you, so you feel supported, confident and informed every step of the way.

What you don’t know about cost!  Your ABIC membership fees are significantly reduced due to the generous contributions of our Foundation Members, so you access actually these services for the cost of a couple of coffees per week, instead of thousands per month.

So What’s Changing in 2025 – and What It Means for You

1. Wage Increases and Penalty Rate Enforcement

The Fair Work Commission just announced a 3.5% increase to Australia's National Minimum Wage and minimum award wages. This adjustment will take effect from the first full pay period starting on or after July 1, 2025. The new minimum hourly rate will be $24.94, up from $24.10, translating to an annual full-time salary of approximately $51,512 .

There will be stronger protections around penalty rates, and a likely more increases to minimum wage in the near future– possibly up to 60% of the median full-time wage.  This affects any clinic, salon or spa employing juniors, casuals, or part-time therapists, beauty or dermal therapists or support staff.

Why it matters: You can no longer assume your pay practices are compliant if you’re not actively auditing and reviewing them.

Incorrect classifications or underpayments can result in penalties of up to $93,900 per breach for businesses, and $18,780 for individuals.

2. Ban on Non-Compete Clauses

The proposed ban on non-compete clauses applies to most clinic, salon or spa staff and small business now. You will not be able to prevent team members from moving to a competing clinic, salon or spa.

Action needed: You must rely on retention strategies, strong culture and well-crafted contracts. ABIC can help implement measures like IP clauses, client confidentiality and incentivisation without breaching the law.

3. Multi-Employer Bargaining

Multi-employer bargaining will increase. If this expands into aesthetics, clinics, salons and spas may be included in industry-wide pay agreements – losing the ability to individually negotiate.

 Risk: Increased wages and reduced pay flexibility. Being unprepared may leave you locked into terms that don't suit your business size or model.

4. Portable Leave Schemes

There are proposed changes that would allow leave entitlements (e.g. sick leave) to follow staff between jobs. These schemes may be funded through employer levies.

 Impact: If you rely on seasonal, casual or event-based hires, you may be asked to contribute to leave you don’t directly benefit from.

5. Casual Conversion Requirements

A default rule will be introduced requiring casuals to be offered permanent employment after six months unless documented otherwise.

 Consequence: Failure to comply may expose you to claims, forced conversion or backpay liability.

ABIC offers tools and templates for compliant casual engagement.

6. Right to Disconnect – Enforced From 26 August 2025

Staff will legally have the right to disconnect after hours. That means you may no longer contact them outside of their rostered hours unless explicitly agreed.

Breaches: Repeated after-hours contact without documented agreement could trigger penalties and complaints.

Our team will help you establish clear communication policies and emergency protocols.

7. Reproductive, Parental and Inclusive Leave Changes

Expect to see additional leave entitlements introduced and superannuation paid on parental leave. Inclusion and diversity requirements will increase, including around hiring practices and workplace design.

What to do: Prepare now by updating internal policies, training managers, and reviewing rostering and payroll systems.

Delays in compliance may lead to penalties or Fair Work scrutiny.

8. Union Access Expansion

Unions will receive broader rights to access your business. Staff complaints, even informal ones, could result in union visits and investigations.  Therapists can be part of various unions including retail.

Critical to know: Obstructing authorised entry or mishandling staff concerns may carry penalties and reputational risk.

ABIC provides early intervention support to address issues internally, before escalation.

9. Regulation of AI and Automation

If you use automated systems for hiring, scheduling, marketing or performance tracking, you’ll need to formally consult with staff before implementing changes.

 Failure to comply: Could breach consultation requirements and data privacy laws. ABIC offers documentation and guidance for safe implementation.

Why ABIC Is the Partner You Need Now

The industry is changing. This isn’t the time for generic advice or one-size-fits-all HR templates.  Your business deserves guidance that’s tailored to our sector and grounded in daily operational realities.

ABIC Clinic, Salon and Spa Membership Includes:

• Direct access to HR, IR and legal professionals Monday to Friday, 9am–5pm
• Contracts, award interpretation and policies crafted specifically for clinics, salons and spas and salons
• One-on-one support to manage risks, resolve issues and lead teams with confidence
• Compliance resources, checklists
• Ongoing alerts and easy-to-understand breakdowns of law changes
• SafeSkin Certification, best practice programs, and business support

Join Today and Stay Ahead

Becoming an ABIC Clinic Member is easy – and the peace of mind it brings is invaluable.

💻 Sign up at https://theabic.org.au/memberships

📩 Or contact us at [email protected] to speak with our team.

Lead your business with clarity, compliance and strength.  With ABIC, you’re never on your own.