1st July 2025 Important Tax, Super and other changes

Minimum wage rise: 

From July 1, the national minimum wage will rise 3.5 per cent to $24.94 an hour, and wages set under awards will rise the same amount too.   

This will require manual adjustment to rates within your payroll software for all employees linked to awards.

Super guarantee increases: 

The super guarantee (the percentage of your salary your employer is required to pay to your super account) will increase to 12 per cent. 

Software programs should pick up this adjustment automatically, but please double check in the first pay run.

Paid parental leave:  

Parents who access government-funded parental leave will be able to receive 24 weeks of pay, up from 22. Crucially, those payments will now accrue superannuation for the first time.

Pension rate increases: 

From July, the rate of the age pension for asset-tested couples will increase by $34.50 a fortnight, and $22.50 a fortnight for singles.

The end of some tax deductions: 

In bad news for some taxpayers, the ATO is shutting the door on some available deductions in July 2025.

Any interest charged to you by the tax office – for an overdue or unpaid tax debt or other fee – will no longer be tax-deductible, a move the ATO says is designed to encourage timely payment of tax obligations and compensate the community for the cost of late payments.

The ATO’s general interest charge is currently 11.17%  and compounds daily, so this is a change that could add up for anyone with serious overdue tax debts.

Pay day Super is coming: 

All employers have 12 months to prepare for this change which comes into effect 1 July 2026. 

Staff Super will need to be paid at the same time as staff are paid.

All employers will need to ensure payroll software is in place to support this requirement.

The ATO have flagged that the Small business Clearing House will be decommissioned, so this should not be relied upon as a long term solution.