What is changing from 1 July 2025?

• Superannuation Guarantee Rate: One thing that will impact every employer is the super guarantee rate increase from 11.5% to 12%. This means higher superannuation payments each month / quarter.
  
  Your payroll software should automatically update this for you. If you notice that superannuation guarantee is not accruing at 12%, please contact us so that we can review your payroll software.
• ATO Interest Charges No Longer Deductible: Businesses can no longer claim tax deduction for ATO interest charges incurred on or after 1 July 2025. This makes it more important to stay on top of your tax debts, as it will become extremely expensive to have outstanding ATO debt from 1 July 2025.
  
  It should be noted that interest on money borrowed from other sources to pay off a tax debt will continue to be tax deductible
• National Minimum Wage Increase: The minimum wage will rise by 3.5% to $24.95 per hour or $948 per week, effective from the first full pay period on or after 1 July 2025. Please consult your HR specialist or Fair Work if you have any queries regarding Awards or pay rates.
• Paid Parental Leave Superannuation: The government will begin paying superannuation on Paid Parental Leave, helping to close the gender super gap. You won’t need to do anything, this will be paid directly to the employee’s superfund.
• Right to Disconnect (Small Business): From 26 August 2025, employees of small businesses will have the right to refuse unreasonable contact outside work hours. Please consult your HR specialist or Fair Work if you have any queries regarding the right to disconnect rules.
• Skilled Visa Income Thresholds: Thresholds for skilled migration visas will increase by 4.6%, affecting employer sponsorship obligations.

These changes ultimately place a higher burden on employers. Now is a good time to review your payroll systems and HR policies to ensure that you are adequately prepared for the new financial year.