As a new financial year is upon us, it seems timely to look at the changes that are coming into effect from 1 July 2025.
One of the changes that will affect everyone is the Super Guarantee Charge (SGC) increasing from 11.5% to 12%. Therefore, employers will need to make sure that their payroll systems are reflecting this change for the first pays after 1 July.
Employees may need to review their salary sacrificing arrangements if they have been sacrificing to the maximum contribution cap as this remains at $30,000. The SGC increase may mean that they exceed the cap if they don’t review their arrangement.
The general transfer balance cap also increases this year, from $1.9m to $2m.
The transfer balance cap is the limit on the total amount of super you can transfer into tax-free retirement income streams during the ‘retirement phase’ of superannuation.
If you’re an employer or high-income earner, the maximum super contribution base (MSCB) is actually decreasing. The MSCB is the maximum income for which an employer must make SG contributions each quarter. The government sets this limit each year.
For the 2025–26 financial year, the MSCB limit will be $62,500 per quarter, a decrease from $65,070 per quarter in 2024–25. This means from 1 July 2025, employers won’t have to make SG contributions on an individual employee’s earnings above this limit.
Finally on super, the Federal Government will pay super on government-funded paid parental leave commencing 1 July 2025.
The minimum wage increases by 3.5% to $948 per week or $24.95 per hour in a 38 hour week. This is up from $915.90.
For larger employers, the Payroll Tax threshold increases by $100,000 to $1m for annual returns and from $75,000 to $83,333 for monthly returns.
The Instant Asset Write off is currently at $1000, down from $20,000, however the Government has suggested it will re-instate the $20,000 write off when Parliament resumes later this month.
If you have any questions or need any assistance, please do not hesitate to contact our office.
