Tax cuts, pay rises and text message changes on the way
WHAT IS CHANGING ON JULY 1?
* Following the Fair Work Commission decision, approximately 2.7 million workers on award wages will receive a 4.75 percent pay increase, while minimum wage workers will receive a 6 percent pay increase
* Workers will also receive pension contributions on payday instead of quarterly installments; This means they will accumulate larger retirement balances as a result of compound interest
* The lowest marginal tax rate for incomes between $18,201 and $45,000 will drop from 16 percent to 15 percent as part of changes announced in the 2025 federal budget, cutting up to $268 per year from an individual’s tax bill
*High value super account holders will pay an extra 15 per cent tax on balances over $3 million, with a further 10 per cent tax on balances over $10 million
* An immediate $1,000 tax deduction for business-related expenses will begin to apply, but taxpayers will only begin electing the deduction starting in July 2027.
* Parents are given an extra two weeks of paid parental leave, bringing the total amount of government-funded leave to six months
* Family tax benefit payments will be indexed for inflation, while eligibility thresholds for other Centrelink benefits such as jobseeker and disability support pensions will also be increased
* Text messages will look different as SMS sender ID registration rules have been adjusted to help stop scams
* The fuel consumption tax deduction will be gradually reinstated, starting from July 1, by adding an extra 16 cents per liter to the cost of fuel.
* Electricity bills will fall for most households in NSW, Victoria and south-east Queensland, while the majority of South Australians can expect a small increase
* Coles and Woolworths will have to comply with new price gouging regulations that ban prices that are “significantly excessive” compared to the cost of the product
* Small businesses with revenues under $1 billion will be able to carry back tax losses to offset profits from previous years
* The next tranche of anti-money laundering and counter-terrorism financing obligations will come into effect, requiring lawyers, accountants, conveyancers, estate agents and jewelers to improve record keeping to verify their clients
* Restaurants must label seafood to indicate whether it comes from Australia, overseas or a mix of domestic and imported suppliers
