New Financial Year Changes Now in Effect: Key Updates for 2025–26

/in /by

As of 1 July 2025, several significant tax, payroll, and regulatory changes have officially come into force. From superannuation increases and updates to asset write-offs, to new workplace entitlements, it’s essential for businesses to stay informed and compliant. Here’s what you need to know:
 
Superannuation Guarantee Rate Increases to 12%
Effective 1 July 2025, the Superannuation Guarantee (SG) rate rises from 11.5% to 12%—the final step in the legislated increase.

  • Apply the new 12% rate to all salary and wages paid on or after 1 July, regardless of when the work was performed.
  • Ensure your payroll systems are updated accordingly.
  • The next SG quarterly payment is due by 28 July 2025. Contributions must be paid quarterly, but may be paid more frequently if preferred.

 
Instant Asset Write-Off: Current Threshold Ending
The $20,000 instant asset write-off is scheduled to end on 30 June 2025, reverting to a $1,000 threshold from 1 July 2025 unless further legislation is passed.

  • The government has proposed extending the $20,000 threshold for 2025–26, but this has not yet been legislated.
  • Eligible businesses can claim an immediate deduction for the business portion of an asset’s cost in the year it’s first used or installed, including:
    • Multiple assets, as long as each is under the threshold
    • Both new and second-hand assets

 
ATO Interest Charges No Longer Tax-Deductible
From 1 July 2025, interest charges on unpaid tax debts are no longer deductible.

  • This includes General Interest Charges (GIC) and Shortfall Interest Charges (SIC).
  • The change applies to income years starting on or after 1 July 2025.
  • Interest incurred in prior years (up to and including 2024–25) remains deductible.

 
Minimum Wage Increase
The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and minimum award wages, effective 1 July 2025.

  • The new National Minimum Wage will be:
    • $948.00 per week, or
    • $24.95 per hour
  • Ensure your payroll and budgeting reflect these updates.

 
Paid Parental Leave Superannuation
Starting 1 July 2025, the Australian Taxation Office (ATO) will begin paying superannuation on the government-funded Paid Parental Leave scheme.

  • This initiative aims to improve retirement outcomes for parents, particularly women.

 
Energy Bill Relief for Small Businesses
Eligible small businesses may receive up to $150 in energy bill rebates between 1 July and 31 December 2025.

  • The rebate will be applied automatically to electricity bills in two instalments of $75 each.

 
Right to Disconnect: Small Business Application
From 26 August 2025, employees in small businesses (fewer than 15 employees) gain the legal right to refuse unreasonable work-related contact outside of their scheduled work hours.

  • This includes refusing to monitor, read, or respond to work communications from employers or third parties outside of work time.

 
If you have any questions or require assistance in navigating these changes, please do not hesitate to contact our office on (02) 8543 6800.