The start of a new financial year brings fresh opportunities, but also important regulatory changes that business owners must prepare for. Beginning 1 July 2025, a number of significant reforms will take effect that may directly impact your operations, payroll, and long-term financial planning. Here are the top changes small businesses need to know.
Superannuation Guarantee Rate Increase
The Superannuation Guarantee (SG) rate has officially increased from 11.5% to 12%, completing the final step in the Federal Government’s planned SG rate increases.
What this means for you: Employers are now required to contribute 12% of an employee’s ordinary time earnings to their superannuation fund for all payments made on or after 1 July 2025, regardless of when the work was performed.
This change affects payroll calculations and employer contributions, so ensure your payroll systems and budgeting are updated accordingly.
Superannuation on Paid Parental Leave
For the first time in Australia, superannuation contributions will be made on government-funded Paid Parental Leave (PPL) payments.
What this means for you: Eligible parents will receive an additional contribution to their superannuation fund, calculated at 12% of their PPL payments. This is a significant step toward closing the retirement savings gap for women and primary carers.
ATO Interest Charges No Longer Tax-Deductible
From 1 July 2025, any interest charged by the ATO on overdue tax debts will no longer be tax-deductible.
Why this matters: With ATO interest rates currently sitting at 11.17% (compounded daily), failing to meet payment obligations is now more expensive than ever. If your business relies on deferred payments or extended lodgement timelines, this could significantly impact your tax bill.
4. National Minimum Wage Increase
The national minimum wage has increased by 3.5%, bringing it to $948 per week or $24.95 per hour.
What this means for you: This update affects small businesses with award-based or minimum wage employees. Payroll and cash flow planning should be reviewed to accommodate the increased wage requirements.
5. Division 296 Superannuation Tax on High Balances
A new tax under Division 296 will apply to earnings on superannuation balances exceeding $3 million.
What this means for affected individuals: This measure targets high-net-worth individuals with large super balances. The tax will apply to the earnings (including unrealised gains) above the $3 million threshold, aiming to create a more equitable superannuation system.
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Why Staying Informed Matters
Each of these changes has implications for your compliance obligations, cash flow, and financial strategy. Failing to update your systems and processes could result in penalties, missed opportunities, or increased costs.
Need Help Navigating These Changes?
At ZenFind Accounting, we specialise in helping small businesses stay ahead of regulatory changes. Whether you need assistance updating your payroll systems, managing super contributions, or adjusting your tax planning strategy, we’re here to help.
Let’s make sure your business is ready for 2025–26 and beyond. Contact us today.