The start of a new financial year always brings a few curveballs for business owners – some good, some annoying, and some you’ll want to get on top of before the ATO does.

This year’s list includes payroll tweaks, tax changes, a new super tax on high balances, shifting thresholds + more.

We’ve rounded up what’s changing from 1 July 2025 [no jargon, no fluff – just what you need to know and what you should actually do about it].

 

1. super is increasing

 

what’s changing:

The Super Guarantee [SG] rate jumps from 11.5% to 12%.

 

why it matters:

Even a 0.5% bump can impact your payroll costs, contracts, and employee expectations.

If your contracts are plus super, you’ll need to pass on the increase. If they’re inclusive of super, the base salary may reduce [which can catch employees off guard].

 

what to do:

  • Double-check if your team’s contracts are plus super or inclusive. Decide your approach – will you absorb the increase or adjust pay?
  • Update your payroll systems.
  • Let your team know what’s changing – no one likes surprise pay changes.

 

2. ATO interest no longer deductible

 

what’s changing:

From 1 July, interest on unpaid tax debts [GIC and SIC] is no longer tax-deductible.

 

why it matters:

The ATO clock is still ticking… it just won’t be deductible anymore. You probably shouldn’t have been treating the ATO as your bank, but now, there’s a real incentive to setup appropriate funding solutions for your business.

 

what to do:

  • Pay your tax on time where possible [we know, easier said than done].
  • Chat to your accountant about smarter cash flow and funding options.

Learn more about the new ATO interest deduction changes here.

 

3. division 7A loan interest

 

what’s changing:

The benchmark interest rate drops to 8.37% [down from 8.77%].

 

why it matters:

If you’ve borrowed money from your company, you need to pay at least this rate of interest to stay in the ATO’s good books – otherwise it could be treated as an unfranked dividend [cue tax pain].

8.37% is still a fairly hefty penalty interest rate.  With real bank interest rates dropping, it’s an incentive to refinance your Division 7A loans if you can, or sort them once and for all.

 

what to do:

  • Review any existing Div7A loans and repayment plans.
  • Use the ATO’s Div7A calculator to keep repayments on track.
  • Got a non-standard financial year? Ask your accountant to confirm which rate applies.

 

4. instant asset write-off

 

what’s changing:

The $20,000 instant asset write-off is proposed to continue for small businesses [<$10M turnover], but as always, it’s still waiting on legislation. If legislation is not passed, the threshold will revert to $1,000 from 1 July 2025.

 

what to do:

  • Planning to buy a new laptop, ute or fridge for the coffee room? Check with your accountant before assuming it’s fully deductible.
  • Watch this space and we will let you know when/if the extension is passed as legislation

 

5. minimum wage + award increases

 

what’s changing:

The Fair Work Commission has announced a 3.5% increase to both the National Minimum Wage and minimum award wages, effective from the first full pay period starting on or after 1 July 2025. This means the National Minimum Wages will rise to $24.95 per hour, or $948.00 per week for full-time employees.

 

why it matters:

Although this increase helps to keep wages in line with rising living costs and inflation, it comes as a cost to business owners.

 

what to do:

  • Review your team’s pay rates – especially if they’re on Awards.
  • Check award classifications if you are worried about who this change impacts.
  • Update your payroll system and employment contracts as needed.
  • Communicate with the team and incorporate in your budgets for the year ahead.

 

6. new super tax: division 296

 

what’s changing: 

The new tax on super balances greater than $3 million is set to start on 1 July 2025… and yet we don’t even have legislation. The new tax [Division 296] will apply an additional 15% tax on superannuation earnings associated with the portion of an individual’s total super balance exceeding $3 million. This is on top of the existing 15% tax on earnings in the accumulation phase, potentially bringing the total tax rate to 30% for affected earnings.

 

why it matters: 

  • Applies to unrealised gains: Unlike other taxes, Division 296 includes unrealised gains, meaning increases in asset values that haven’t been sold can still be taxed.
  • Threshold not indexed: The $3 million threshold is not indexed to inflation, so over time, more individuals could be affected as their super balances grow. 

 

what to do: 

  • Nothing… let’s wait and get more details of the final legislation before you get too carried away moving assets or anything.
  • Director, Megan Kelly shared her thoughts on this new tax in our recent ‘in the loop’, you can watch the full discussion here.

 

7. super thresholds are shifting

 

 what’s changing:  

Two key super thresholds are changing from 1 July 2025:
 

  1. The Transfer Balance Cap increases from $1.9 to $2 million, this is the limit on how much you can move into retirement phase [pension] accounts. 
  2. The Maximum Super Contribution base drops to $62,500 per quarter [$250,000 per year]. 

 

why it matters:

These changes affect how much individuals can have in pension phase of super, and how much employers are required to contribute for high-income earners. 

 

what to do:

  • Individuals: If you’ve started or considered starting a pension, chat with your adviser about what the new cap means for your strategy. It may mean that you can move more super into pension phase. 
  • Employers: Check if these changes impact your SG obligations. 

 

8. paid parental leave expansion

 

what’s changing:  

Parental leave entitlements are expanding to 24 weeks from 1 July 2025, with plans to increase further to 26 weeks by 2026. 

 

why it matters:  

This is a win for working parents, helping them balance work and family life better. But it also means adjustments to payroll, budgeting, and HR policies for businesses. 

 

what to do:  

  • Review your parental leave policies and payroll systems to ensure compliance. 
  • Start planning how to support your team through these changes. 

 

a few extras you should know

 

1 July 2025 reminder: STP finalisation

what’s changing:

Single Touch Payroll [STP] finalisation for the 2024–25 year is due by 14 July 2025.

 

what to do:

  • Finalise early – nobody likes a last-minute panic.
  • Reconcile your payroll and accounting records to avoid mismatches.

 

new seller disclosure rules for QLD real estate 

what’s changing:  

From 1 August 2025, parts of the amended Property Law Act will take effect, bringing with it a standardised seller disclosure regime. Sellers will need to provide a completed disclosure statement and key supporting documents before going under contract.

 

why it matters:
If disclosure isn’t done properly, buyers may have the right to terminate the contract all the way up until Settlement.

 

what to do:

  • Get across the new disclosure requirements.
  • Encourage sellers to speak to a lawyer early in the sales process.
  • Update your internal workflows to avoid delays or contract fall overs.

Our Legal team breaks it down here.

 

we’re here to help!

 

If you have any questions or concerns about how these changes will impact your business, give us a buzz on 1300 BDEPOT or get in touch via oneplace@businessdepot.com.au.

 

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