As 2025 comes to a close, it is timely to reflect on how the legal landscape evolved for individuals, families and businesses alike. Across multiple areas of law, the year saw a clear shift toward greater regulation, closer scrutiny and a stronger emphasis on proactive compliance.
From significant employment law reforms and a reset of franchising obligations, to evolving family law principles, rising estate complexity and changing expectations around dispute resolution, the pace of change remained high. Understanding not just what changed, but how those changes played out in practice, was critical for managing risk and making informed decisions.
Below, we look at the key legal themes that defined the year, and the practical issues our clients most often needed help navigating.
Key legal themes and developments of 2025
📌 1. Employment law stepped into a new compliance era
Employers had plenty to navigate this year, including:
- The introduction of National Wage Theft laws from 1 January 2025, making wage theft a criminal offence;
- A reconsideration of the application of annual salaries in light of the Court decision in the FWO cases against Woolworths and Coles;
- The Victorian Government introducing a bill proposing to restrict NDAs in cases of sexual harassment;
- The Australian Parliament approving amendments to the Superannuation Guarantee (Administration) Act 1992 which requires superannuation to be in an employee’s superannuation account within 7 days of payday, which will commence from 1 July 2026;
- New protections under Baby Priya’s Law for employees dealing with stillbirth or infant loss; and
- Victoria introducing Psychosocial risks into its Work Health & Safety legislation aligning it with the rest of Australia.
Together, these developments made it clear that workplace compliance is no longer a “tick-the-box” exercise. Employers are increasingly expected to demonstrate active systems, training and oversight.
Key insight: Start 2026 with a quick refresh of your workplace policies and training. A few small updates can make a big difference.
📌 2. Franchise law: compliance moved front and centre
For franchisors, 2025 was a year of constant change and heightened scrutiny. Much of the focus was on understanding and implementing the new Franchising Code of Conduct, which took effect from 1 April, with further changes rolling out on 1 November 2025.
Key issues included:
- new and updated ACCC guidance on provisions of the new Code
- the release of a new compilation of the Code, less than a year after it was first introduced
- increased ACCC enforcement, including penalties issued to well-known brands for franchising code breaches
- the ACCC taking over responsibility for the Franchise Disclosure Register and the introduction of new disclosure items in the Register
- clarification around franchisor liability, highlighted by the Crust Pizza case, and
- growing attention on franchise insolvency and how to protect brands and networks when financial pressure arises.
Across the sector, franchisors were required to move quickly, update their documents and processes and take a far more proactive approach to compliance.
Key insight: If your franchise documents or systems haven’t been reviewed since the new Code came into effect, now is the time — enforcement activity and the expansion of civil penalties (currently $198,000 per offence) to most provisions of the Code has made compliance non-negotiable.
📌 3. Family law reforms focused on safety and practical clarity
Amendments to the Family Law Act reshaped how parenting matters are assessed, with a stronger emphasis on child safety and wellbeing. At the same time, families continued to seek clarity on practical issues such as:
- who stays in the home during separation;
- how inheritances are treated in property settlements;
- what “full” financial disclosure actually requires; and
- when a Binding Financial Agreement is appropriate.
These everyday questions shaped many family law matters throughout the year.
Key insight: Early advice remains one of the most effective ways to reduce conflict and uncertainty during separation.
📌 4. Wills & Estates became more complex, and more important
Estate planning in 2025 extended well beyond drafting a will. Clients increasingly required guidance on:
- rising probate fees;
- the new Victorian probate fee structure and its impact on executors;
- planning for digital assets, including cryptocurrency and online businesses;
- Intestacy laws when there is no Will
- avoiding the risks associated with DIY wills; and
- reducing the likelihood of estate disputes.
As family structures and asset types continue to evolve, estate planning has become both more technical and more important.
Key insight: If an estate plan hasn’t been reviewed in recent years, now is an ideal time to update it.
📌 5. Property & Leasing delivered clarity on key issues
Property & Leasing delivered some clarity on key issues and the definition of what is a retail lease was further broadened.
Landlords and tenants faced several important developments in 2025, including:
- confirmation that rent increase caps in retail leases are permissable;
- clarification that the Retail Leases Act; does not automatically apply to renewed terms if the tenant is exempt at time of renewal;
- a decision in VCAT that equitable set off may still apply despite a no deductions clause;
- clarification of when long-term leases fall outside the Retail Leases Act;
- guidance on VCAT’s powers when granting relief from forfeiture; and
- a continued rise in disputes whether the Retail Leases Act applies or not in light of rising land tax;
These developments reinforced the importance of careful drafting and early legal advice.
Key insight: Retail leasing laws are complex. Before signing a lease, obtain independent legal advice to understand your rights, obligations and risks, as retail leases can impose long-term financial and legal consequences that are difficult and costly to undo.
📌 6. Commercial & Corporate: sharper focus on risk, cost and compliance
Across 2025, much of the discussion in commercial and corporate law centred on helping businesses take a more deliberate approach to risk, cost and compliance — often before issues became urgent.
Key topics we covered included:
- when legal costs may be tax deductible, particularly in the context of EOFY planning;
- the value of legal health checks in identifying hidden risks before they escalate;
- industry-specific legal challenges, including those facing the hire and rental sector;
- protecting brands and goodwill, highlighted by high-profile trade mark disputes; and
- clearer ACCC expectations around disclosure and onboarding obligations, particularly for franchisors.
- significant reform to Australia’s merger control regime, with businesses preparing for a shift from voluntary to mandatory ACCC notification and approval for certain acquisitions commencing in 2026.
Taken together, these issues reflected a broader shift toward prevention rather than reaction, particularly for businesses planning growth, acquisitions or restructuring.
Key insight: A modest amount of proactive legal planning can significantly reduce cost and disruption later.
📌 7. Dispute Resolution & Litigation: calm strategy when things get difficult
In 2025, disputes didn’t just increase – the way they needed to be handled changed. Timing, preparation and early decision-making became critical.
Key challenges clients faced included:
- ongoing building and construction disputes, especially defect and water ingress claims where delay reduced available options;
- a rise in commercial disputes, as economic conditions tested contracts and business sales;
- disputes complicated by financial distress or insolvency; and
- sensitive family property disputes, requiring both firmness and care.
Throughout the year, the focus was on helping clients understand what had changed, assess their position early, and pursue resolution rather than unnecessary escalation. Communication continues to be key – keeping clients informed along the way is more important than ever before.
Key insight: In 2025, disputes were increasingly decided by preparation and timing — not persistence.
Most read articles of 2025
Every year, a few topics really strike a chord with our readers. These were the topics that sparked the most interest and conversation throughout the year:
- Understanding Victoria’s New Probate Fee Structure
- Your Legal Costs May Be Tax Deductible
- Domestic Building Defects: Water Ingress
- Inheritances in Family Law Property Settlements
- Employment Law Changes from 1 July 2025
- Rent Arrears, Set-Offs and Lease Loopholes
- Why Digital Assets Must Be Part of Your Estate Plan
- Franchise Insolvency: How to Protect Your Business and Brand
Looking ahead
More reforms are already on the horizon for 2026. As always, we’ll continue sharing updates and providing practical, clear advice to help you stay informed and prepared.
Thank you for reading, sharing our updates, and trusting us with matters that matter to you. We’re looking forward to supporting you again in 2026.
And finally, in the spirit of the season — no, we can’t advise whether Santa’s elves are employees or contractors… but we’ll save that one for 2026!
Warm regards
The MST Lawyers Team
