New Financial Year, New Changes: What You Need to Know
The 2025–26 financial year has arrived, and with it comes a range of important updates that could affect your personal finances, household benefits, and business responsibilities. As always, the beginning of a new financial year is a great time to get informed, reassess your position, and plan ahead.
Super Guarantee Rate Increases
The compulsory superannuation guarantee has increased from 11.5% to 12% as of 1 July. Employers must now contribute this higher percentage into their employees’ super funds. If you’re a business owner, it’s essential to ensure payroll systems are updated to reflect this change. For employees, particularly those on fixed total remuneration packages, this adjustment may impact your net pay. Either way, now’s a good moment to check your super contributions and long-term retirement planning.
Centrelink Payments Adjusted
A number of Centrelink benefits have been increased to help Australians cope with the ongoing cost-of-living pressures. Updates apply to JobSeeker, the Age Pension, Family Tax Benefit, and the Child Care Subsidy. These revised amounts take effect from 1 July and are automatically applied for eligible recipients. If you receive government support or family assistance, it’s worth logging into myGov to ensure your details are correct and that you’re receiving your full entitlements.
Small Business Asset Write-Off Extended (Pending Legislation)
The federal government has announced its intention to extend the $20,000 instant asset write-off for eligible small businesses into the 2025–26 financial year. However, this measure has not yet been passed into legislation.
If it goes ahead, businesses with an annual turnover under $10 million would be able to immediately deduct the cost of eligible assets purchased and ready for use between 1 July 2025 and 30 June 2026.
Until legislation is passed, we recommend speaking with your Accountant before making any major purchases to ensure you understand what is currently deductible under existing tax law.
Paid Parental Leave Scheme Expands
The Paid Parental Leave scheme has undergone another major expansion, with eligible families now able to access up to 26 weeks of government-funded parental leave, up from 22 weeks last year. The scheme is designed to provide greater flexibility for families, allowing leave to be shared more evenly between parents, with a portion reserved for each to encourage shared caregiving. These changes offer increased financial support for new parents during the early stages of raising a child.
Denying deductions for ATO interest charges
From this financial year, businesses can no longer claim a tax deduction on interest charges from the ATO for unpaid tax debts. In the past, if you were late paying the ATO and got charged interest, you could include that cost in your tax return — but not anymore. This change means it could now cost you more to fall behind on your tax. If your business has any overdue amounts or payment plans in place, it’s a good idea to stay on top of them to avoid extra costs. Chatting with your accountant early can help you avoid any surprises.
Ready for the year ahead
With these changes now in effect (or soon to be confirmed), the new financial year offers both challenges and opportunities. Whether you’re managing payroll, super, or business deductions — or reassessing your family’s financial planning — being proactive is key.
If you’re unsure how these updates apply to your situation, our team is here to help. Get in touch with us today.