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What’s Changing on 1 July 2025? 3 Updates You Can’t Miss

There are 3 major changes worth knowing about — straight from business.gov.au, and made simple by us. These updates are set to impact your business operations, finances, and minimum wage starting 1 July 2025. We’re here to help you navigate these changes with confidence and ease, and make the most of the available benefits.

 

Here’s what you need to know:

  1. Super Guarantee Increase

The Super Guarantee rate is increasing from 11.5% to 12% on 1 July 2025. This means employers will need to contribute a slightly higher percentage of each employee’s ordinary time earnings to their super fund.

What this means for you:

Your payroll systems will need to be updated to reflect the new rate, and you will need to review your employee pay arrangements.

 

  1. ATO Interest Charges No Longer Deductible

Interest charged by the Australian Taxation Office (ATO) on overdue tax debts, which is currently at 11.17% compounded daily, will no longer be tax-deductible.

What this means for you:

This affects appropximately 2.6 million small businesses, increasing the cost of carrying tax debt.

 

  1. National Minimum Wage Increase

The National Minimum Wage will increase by 3.5% to $24.95 per hour, or $948 per week. This will apply from the first full pay period starting on or after 1 July 2025.

What this means for you:

This will apply from the first full pay period starting on or after 1 July 2025.

July Is a Great Time to Reset!

The new financial year is a perfect opportunity to plan for the year ahead while everything is still fresh. This is the time to review your budgets, pricing strategies, software, and subscriptions, to set your business up for success.

For the full government summary, visit https://business.gov.au/news/changes-for-businesses-from-1-july-2025.

 

We understand these updates can feel like a lot to manage, but you don’t have to do it alone. If you need help understanding how these changes will affect your business or want support to start the year strong, don’t hesitate to get in touch.

Contact us on 0417 859 700 or email rebecca@kaleidoscopeaccounting.com.au for guidance every step of the way.

 

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