The end of the financial year is upon us, and with it comes a range of changes that could impact your business. Here’s some of the biggest adjustments you need to be aware of and how to prepare.
Minimum Wage Increase
The National Minimum Wage is increasing by 3.5%. New minimum rates across Australia will be $948 per week or $24.95 per hour. These rates apply to any employee not covered by an award or enterprise agreement, however minimum award wages are also increasing by 3.5%.
How to prepare:
- Download the latest Pay Guide for your industry and check the minimum pay rates for your staff.
- Review your payroll to ensure compliance and check that your employment contracts are up to date.
- If an increase is required for any staff, notify them of the change and the first payment date that the increase will take effect. The increase applies from the first full pay cycle starting on or after 1 July 2025.
Superannuation Guarantee Increase
The superannuation guarantee is increasing from 11.5% to 12%.
How to prepare:
- Check your payroll and adjust all super payments to the correct amount.
- Review your yearly and quarterly budget to account for this change – remember that super contributions for each employee MUST be paid on at least a quarterly basis, and the next quarterly super payment is due 28 July. Watch the ATO’s video here for more details on your obligations.
- Start preparing for Payday Super. From 1 July 2026 employers will be required to pay employee’s super at the same time as their salaries and wages. You have twelve months to prepare, so start thinking about your budget and procedural changes now.
Changes to ATO Debt
From 1 July 2025, interest accrued on ATO debt will no longer be tax deductible. All money owed to the ATO (i.e. income tax or PAYG instalments) incurs a General Interest Charge (GIC) when not paid by the due date. The interest rate is currently 11.17% and compounds daily.
Previously, you could claim this interest as a deduction on your tax return, but this will no longer be the case for interest accrued from 1 July 2025. This means that carrying a tax debt will cost your business much more, making it more important than ever to stay on top of your tax obligations.
The best thing you can do at the moment is to pay off any tax debt. If you’re unable to pay in full, consider setting up a payment plan to minimise the amount of interest charged. You can also still apply a deduction on this year’s tax return for interest earned prior to 1 July, so make sure to do so to reduce any current debt.
With July right around the corner, now is the time to check your payroll, budget, and internal policies and contracts to ensure compliance. If you need a hand implementing any of the above changes or refreshing your employment contracts, we can help. Our experienced team can assist with:
- Bookkeeping, including reconciliation of accounts and ATO compliance
- Payroll, including superannuation processing
- HR services, including drafting and reviewing employment contracts and policies
- And more!
Get in touch with one of our expert Bookkeepers or HR Consultants today.
📧 Email: admin@dreamadmin.com.au
📞 Phone: (02) 4821 2559
We’re here to support your business with professional, reliable advice.
