Australians will see changes to wages, tax, superannuation, parental leave and more from 1 July, as a suite of federal and state reforms take effect at the start of the new financial year.
The annual reset often brings regulatory and legislative updates, but this year’s changes affect workers’ pay packets, retirement savings, family budgets and business operations.
Here are some of the major confirmed changes.
Millions of workers set to receive a pay rise
Millions of Australians covered by awards will receive higher pay after the Fair Work Commission approved a 4.75 per cent increase to minimum and award wages earlier this month.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
The National Minimum Wage will rise to $26.44 an hour, equivalent to $1,004.90 a week based on a 38-hour week before tax.
The increase applies from the first full pay period starting on or after 1 July.
Around 2.8 million employees paid under modern awards are expected to benefit, alongside workers who receive the national minimum wage.
Superannuation to be paid at the same time as wages
One of the biggest structural changes taking effect this financial year is the introduction of payday super.
From 1 July, employers will be required to pay employees’ superannuation contributions at the same time as wages, rather than quarterly.
The change is designed to reduce unpaid and delayed super and make retirement savings easier for workers to track.
James Koval, chief policy and advocacy officer at the Association of Superannuation Funds of Australia, said the reform would affect around 19 million Australians with super accounts.
“What it will mean is that millions of people have a higher balance at retirement simply because they'll be receiving their superannuation payments earlier and more frequently,” he said.
Supporters argue more frequent contributions could improve long-term balances through compounding returns, particularly for younger workers.
Koval said the reform could also help workers identify unpaid super sooner by making it easier to compare contributions arriving in their account against their payslip.
Business groups have welcomed the intent of the reform but warned the transition may create operational and cashflow challenges, particularly for small and medium-sized businesses.
Koval said while some businesses may face an adjustment period, the reform had been planned for several years and did not increase the amount employers pay , only how often payments are made.
"We think there might be a few teething issues early, but it’s still a substantial improvement because it means that for millions of Australians, they'll be getting super more frequently."
Supporters argue more frequent contributions could improve long-term balances through compounding returns, particularly for younger workers.
Business groups have welcomed the intent of the reform but warned the transition may create operational and cashflow challenges, particularly for small and medium-sized businesses.
The concessional contributions cap will also increase from $30,000 to $32,500.
Tax, super and government payment settings also change
Australians will also see changes to tax settings, superannuation limits and some government payment thresholds from 1 July.
Tax changes
The lowest marginal tax rate will reduce from 16 per cent to 15 per cent for taxable income between $18,201 and $45,000, delivering tax relief to millions of workers.
A proposed $1,000 instant tax deduction for work-related expenses is expected to apply from 2026-27 if legislated, but it will not apply to this year’s tax return.
Government payments and thresholds
Some Centrelink payment thresholds and limits will also increase through regular indexation from 1 July.
For families receiving Family Tax Benefit Part A and Part B, maximum payment rates will rise, while income and asset thresholds for payments including the Age Pension and Disability Support Pension will also change.
Medicare Levy Surcharge thresholds increase
The income thresholds at which the Medicare Levy Surcharge kicks in will increase from 1 July — to $105,000 for singles and $210,000 for families.
The surcharge applies to higher-income earners who do not hold eligible private hospital cover and is paid in addition to the standard Medicare levy.
Super contribution caps increase
Alongside the shift to payday super, Australians will also be able to contribute more to superannuation before attracting additional tax.
The concessional contributions cap, which covers pre-tax contributions including employer super and salary sacrifice, will increase from $30,000 to $32,500 annually.
The non-concessional contributions cap for after-tax contributions is also set to increase from $120,000 to $130,000, while the general transfer balance cap will rise from $2 million to $2.1 million.
Koval said the higher contribution caps may be particularly useful for Australians approaching retirement.
"For people who might be in their late 50s or early 60s and really putting thought into how they can have the most comfortable retirement possible, these changes can be really positive."
He said the increased caps may create more opportunity for Australians to make concessional top-up contributions and strengthen retirement savings before leaving the workforce.
The government has also proposed additional tax changes for Australians with very large super balances. Under the proposal, earnings linked to super balances above $3 million would face a higher tax rate, although implementation remains dependent on legislation and commencement arrangements.
Paid parental leave expands
Families welcoming children from 1 July will gain access to expanded government-funded parental leave.
Paid Parental Leave will increase from 120 days to 130 days, equivalent to 26 weeks under a standard five-day working week.
Partner leave entitlements will also increase from 15 to 20 reserved days.
The changes apply to children born or adopted from 1 July.
The expansion forms part of a staged increase aimed at supporting workforce participation and giving families greater flexibility in sharing care responsibilities.
New anti-scam protections for text messages
Australians may notice changes to how branded text messages appear on their phones under new anti-scam protections.
Businesses using branded sender IDs will be required to register those identifiers.
Messages sent using unregistered sender IDs may increasingly appear separately from verified business communications as part of efforts to reduce impersonation scams.
The reforms are designed to make it harder for scammers to imitate trusted organisations.
Other confirmed national changes
Businesses selling seafood will have to provide clearer country-of-origin information to help consumers better understand where their food comes from.
At the same time, ASIC business and company registration fees will increase under updated annual pricing arrangements.
Eligible small businesses will continue to have access to instant asset write-off arrangements for qualifying purchases below the $20,000 threshold.
Consumers in jurisdictions covered by the National Energy Customer Framework will also receive stronger protections before electricity disconnection, with the minimum debt threshold increasing.
Some additional tax and superannuation measures announced by the federal government may still depend on legislation and commencement dates before taking effect.
Across the country: What else is changing?
NSW
A staged transition toward mandatory food organics and garden organics (FOGO) recycling will begin, initially targeting larger waste generators.
New anti-money laundering and counter-terrorism financing obligations will also begin applying to additional professional sectors.
Victoria
Victorian renters will gain access to a portable rental bond scheme designed to allow existing bonds to transfer between rental properties.
Electricity reference prices are also set to fall.
Queensland
New child safety reporting requirements will apply to organisations working with children.
Queensland will also introduce new e-mobility rules targeting high-risk e-bike and e-scooter behaviour.
Western Australia
WA residents will see an expanded container deposit scheme and access to fuel support measures announced by the state government.
South Australia
Eligibility for the Seniors Card will broaden to include more residents regardless of work hours.
ACT and Tasmania
Property-related changes, including stamp duty settings and first-home buyer arrangements, will also take effect.
For the latest from SBS News, download our app and subscribe to our newsletter.
