From superannuation changes to wage increases and deduction rule tweaks, 1 July brings a raft of updates that employers need to be across. One of the most significant changes is the increase in the Superannuation Guarantee (SG) rate to 12%, marking a big step in the Federal Government’s long-term plan to help Australians build a more secure retirement.
But super isn’t the only thing changing this new financial year. Here’s a quick roundup of the essentials for employees and employers alike.
If you employ staff, you'll need to ensure your payroll systems reflect the new 12% Superannuation Guarantee (SG) rate, which is compulsory for eligible employees. This marks the final step in the government's phased increase from 9.5% in 2021 to 12% by 2025.
For those using cloud-based payroll software such as Xero, the SG rate should automatically update. However, it's important to review your settings to confirm the change has been applied correctly. If your software is not as intuitive or lacks automation, a manual update may be required to comply with the new rate.
💡 Quick tip: SG is calculated on ordinary time earnings, so make sure your payroll settings are spot on.
It’s also worth checking for annual wage increases under modern awards, many of which kick in from 1 July. The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage, taking it to $948 per week, or $24.95 per hour.
The Health Support Services Awards has also been reviewed and updated, which is critical for employers in healthcare and allied health industries.
If you're unsure how this affects your team, now's a great time to seek advice and avoid compliance headaches down the track.
The $20,000 instant asset write-off for eligible businesses is currently due to end on 30 June 2025, at which point the threshold is set to revert back to $1,000.
While this has been a valuable incentive for small businesses, allowing an immediate deduction for eligible assets costing less than $20,000, there is no formal extension in place beyond 30 June 2025. The government has indicated it may consider extending the measure, but as at the date of publication, no such extension has been legislated.
If you're considering any equipment purchases or upgrades, now is the time to plan. You may want to take advantage of the current rules before 30 June 2025. As always, we're here to help you confirm eligibility and ensure the timing of any purchases aligns with the requirements. We'll keep you informed of any changes if the government announces an extension.
From 1 July, the General Interest Charge (GIC) and Shortfall Interest Charge (SIC), applied to unpaid tax liabilities and tax shortfalls respectively, will no longer be tax-deductible.
This change increases the cost of late payments and amended assessments, so it’s more important than ever to stay on top of lodgement deadlines and tax obligations.
While it won’t take effect until 1 July 2026, it’s worth starting to plan for Payday Super now.
Under the new rules, employers will need to pay super at the same time as wages rather than quarterly. The goal is to help employees grow their super faster and reduce the risk of unpaid entitlements.
Businesses that prepare early will be ahead of the game.
If you're running a practice, these changes aren’t just admin. They could impact your cash flow, tax position and overall strategy.
We’re here to help you make sense of it all, with practical advice to keep you ahead of the curve.
Speak to your trusted advisor at Cutcher & Neale today. Let’s start the new financial year with clarity and confidence.