A number of 1 July changes have come into effect which will impact many businesses in regard to wages, government fees, ATO interest charges and other costs. EOFY, tax time and the start of the new financial year is a busy time for many businesses and many owners may not be fully aware of what has changed with their obligations. If that is you, it’s time to get across the detail and ensure your business is fully compliant.
Changes to the National Minimum Wage, superannuation, business registration fees and some business reporting obligations have been introduced nationally. These changes could impact your business costs, budgeting and cash flow. If so, support through a range of commercial loans is available.
On a positive note, there are changes to energy rebates for small businesses and Victoria has eased cost pressures with lifting the threshold for payroll tax. We outline what has changed and how we support businesses struggling to meet their commitments with these increased outgoings.
1 July Changes
The National Minimum Wage increased on 1 July 2025. The new wage is $24.95ph, $948pw. Employers must pay this increase to their relevant employees starting on the first full pay period after 1 July.
The final scheduled increase to the superannuation guarantee is now in effect. The rate has increased from 11.5% to 12%. The rate applies to the salary and wages for all eligible workers.
An increase in the skilled visa income threshold is also now in effect. It has increased by 4.6%. Core Skills Income Threshold has risen to $76,515 from $73,150. The Specialist Skills Income Threshold is now $141,210, up from the previous $135,00 and Temporary Skilled Migration Income Threshold is now $76,515 and increase from $73,150.
In some states, the start of the new financial year also signals an increase in fees charged on some toll roads. Check your state roads department for what is applicable in your state.
ASIC has announced that business name registration fees have increased in line with the March quarter CPI. Renewal and rego for 1 year is up to $45 from $44. Company rego is up to $611 from $597 and the annual review fee which applies to proprietary companies has risen to $329 from $321.
An obligation for business in the hospitality sector to plan for is the changes to ‘country of origin’ seafood labelling. This comes into effect from 1 July next year – 2026, with the 12-month transition period now started. Businesses that sell dishes containing seafood will need to label the menu with the country of origin. This may require setting up a system for sourcing the correct country for each ingredient and making changes to the way menus are prepared.
ATO Interest Charges 1 July Changes
As we reported in an earlier blog, changes come into effect from 1 July which may impact those with a debt to the taxman. From that date, interest on debts to the Australian Taxation Office (ATO) will no longer be a tax deduction. This applies to interest that is incurred on or after that date.
For businesses paying interest on their tax bill, denying the deduction is effectively a cost increase. The ruling applies to General Interest Charge and Shortfall Interest charges incurred from July 1.
Positive 1 July Changes
While ‘as per usual’ most new financial year changes include an increase, there are some positive moves in some areas. From the start of the 2025/26 financial year and through to the end of 2025, eligible small businesses may receive a rebate on their energy bills. A rebate of up to $150 is available to those eligible. Businesses do not need to apply for the rebate as it will automatically be applied to the relevant bills in quarterly instalments.
Payroll tax can be a major cost to many businesses. In the Victorian State Budget, the government has announced changes to their Payroll Tax which may offer relief for your business.
From the start of this financial year, the threshold for businesses subject to payroll tax increased to $1m from $900,00 for annual returns and to $83,333 from $75,000 for monthly returns. Business operators are advised to refer to their accountant for further details and ensure they are compliant.
Need cash flow support?
Many of these increased charges, especially those affecting wages and superannuation, can be a major cost increase for businesses. Coming at a time when some sectors are struggling, meeting these obligations could pressure cash flow.
If you are feeling the pinch and need cash flow support, affordable commercial loan options may be a solution. Overdraft facilities, lines of credit and unsecured business loans may be used to ease cash flow pressures.
If slow paying clients is the source of your cash flow pressure, speak with us about our Invoice Debtor Funding. A specialist loan product which can be used effectively to speed up the receipt of payments on invoices.
To deal with cash flow pressure as a result of 1 July changes, speak with Business.Finance on 1300 000 033
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