As the new financial year approaches, several changes are coming into effect that may impact your business.
From wage increases to super changes, now is the time to review your payroll systems, budgets, and compliance settings.
Here’s a quick rundown of what to expect from 1 July 2025:
Superannuation Guarantee Increase
Compulsory employer super contributions will increase from 11.5% to 12%. This is the final legislated increase to superannuation which began in 2021.
Action: Make sure your payroll software is updated to reflect this change.
Minimum Wage Increase
The national minimum wage will rise to $24.90 per hour (or $948 per 38-hour week).
Action: If you employ staff on awards or minimum rates, ensure their pay is adjusted accordingly.
This increase may also affect penalty rates and allowances, so it’s a good time to review your total wage structure.
Paid Parental Leave
Paid Parental Leave for eligible employees will be increasing to 24 weeks, and superannuation will now be paid on Government Paid Parental Leave.
Impact: If your employees take government-funded parental leave, they’ll now receive a 12% super contribution on top. This change supports long-term retirement outcomes, especially for new parents.
No More Tax Deduction on Late Payment Interest
From 1 July, interest on overdue tax debts (including General Interest Charge and Shortfall Interest Charge) will no longer be tax deductible. We discussed this in more detail in a previous article, click here to read more.
Action: Make sure your tax lodgements and payments are made on time — this small penalty is about to become a lot more costly.
Need Help Navigating These Changes?
Whether it’s updating payroll, budgeting for wage increases, or ensuring your tax strategy is airtight, we’re here to help you transition smoothly into FY25.
Contact us to book a quick review or discuss how these changes might affect your business.