As of 1 July 2025, the Fair Work Commission raised the national minimum wage from $24.10 per hour or $915.90 per week to $24.95 per hour or $948 per week. While this is great for Australian workers, for many companies with employees on minimum wage, this means an immediate cost increase. Alongside the recent energy tariff hike, small to medium-sized businesses, especially QSRs, are going to be those feeling the most pressure from these rising costs.
What does this new minimum wage mean for you?
The 3.5% increase means that the new National Minimum Wage – the minimum a company is required to pay an employee – will increase by:
💰 $0.85 per hour
💰 $32.10 per 38-hour week
💰 $1,669.20 per year
While all of your employees’ wage rates should have been updated by 1 July, if you’re unsure about anything to do with these changes, it’s best to reach out to your bookkeeper.
Where to cut costs
While the new award rates and energy tariff puts pressure on your cashflow, there are other areas of your business worth assessing to see whether costs can be cut.
Inventory management
If you don’t have an efficient way to manage your inventory, you could be throwing money away. Regular inventory audits are an effective way to ensure every item is accounted for and identify any discrepancies before they become an issue. You may uncover problems like unnecessary waste, admin errors, or theft. All of which, when rectified, can save your bottom line.
Food storage education
Your staff can’t know what you don’t teach them. What may seem like common sense to you, won’t to someone else, so employees need to be educated on correct procedures from the start. Take them through best practices for stock handling, like first-in, first-out (FIFO), ways to properly store items, and labelling food items with dates. Doing this will mean less food wastage due to improper storage, more accurate inventory management, and more money in your pocket at the end of the day.
Consider menu changes
Take a look through your menu. Are there items that don’t sell well that could be cut? Are there items where you could replace more expensive ingredients with seasonal ones that will be less costly? Other options like meal bundles could also help move stock that isn’t selling as well.
If you’re looking for waves to save on your next energy bill, take a look at our blog on the latest energy tariff. From energy audits to energy efficient equipment, there are tangible ways to identify where you’re wasting energy and save money.