Your full guide to legislation, deductions, and payroll changes for small business starting 1 July 2025 for the new financial year.
From super and wage increases to new compliance obligations, it’s critical to understand what’s changing so you can stay on top of your obligations and opportunities. Here’s a clear breakdown of the changes for small businesses announced by the Australian Government, rewritten for real business owners who want clarity, not complexity.
Superannuation Guarantee Increases to 12%
From 1 July 2025, the Super Guarantee (SG) rate will increase from 11.5% to 12%.
What to do:
- Update payroll software and systems
- Review labour cost forecasts
- Ensure payments are processed on time to avoid penalties
Paid Parental Leave: Super Now Applies
From 1 July 2025, the government will start paying superannuation on Paid Parental Leave for eligible employees. This applies to babies born or adopted from this date onwards.
What to do:
- Monitor updates on implementation
- Understand obligations if you employ team members planning leave
- Small Business Energy Incentive Ends
The Small Business Energy Incentive allows eligible businesses to claim an additional 20% deduction for energy-efficient assets. This incentive ends on 30 June 2025.
What to do:
- Finalise purchases and installation before 30 June 2025
- Ensure assets cost under $100,000 and meet eligibility
PAYG Instalments Adjusted by GDP
From 1 July 2025, PAYG instalments for companies will be calculated using a GDP adjustment factor unless the business opts out.
What to do:
- Review cashflow forecasting
- Consider whether to manually vary your instalment amounts
National Minimum Wage and Award Increases
From 1 July 2025, both the National Minimum Wage and Modern Award wages increase following Fair Work’s Annual Wage Review.
What to do:
- Check the updated pay guides for your industry
- Update employment contracts and payroll systems
- Communicate changes to your employees
No More Deductions for ATO Interest Charges
From 1 July 2025, you can no longer claim a tax deduction for general interest charges (GIC) imposed by the ATO.
What to do:
- Avoid unnecessary ATO interest by paying on time
- Plan ahead for obligations and payment dates
Business Name Registration and Company Fees Rise
ASIC is increasing fees for business name registration, annual company reviews, company name changes, and deregistration.
What to do:
- Review ASIC compliance calendars
- Lodge early where appropriate to avoid higher costs
Energy Bill Relief Fund Continues
Eligible small businesses will continue receiving electricity bill relief in 2025–26, with specifics varying by state or territory.
What to do:
- Check your state’s guidelines and eligibility
- Understand how credits will be applied
Skilled Visa Threshold Increases
The Temporary Skilled Migration Income Threshold (TSMIT) will rise to $73,150 from 1 July 2025.
What to do:
- Review eligibility if you’re sponsoring skilled workers
- Consider how this may impact recruitment planning
Right to Disconnect Now Applies to Small Business
From 1 July 2025, the right to disconnect extends to small business employees. This means employees may refuse contact outside work hours unless it’s reasonable.
What to do:
- Update your HR policies and employee expectations
- Train managers to implement the policy fairly
Environmentally Sustainable Procurement Policy Expands
Government procurement policy is expanding to prioritise suppliers with sustainable and environmentally responsible practices.
What to do:
- Review your sustainability credentials
- Prepare for stricter requirements in future tenders
Merger Reform Underway
While not active from 1 July, reforms to competition and merger rules are coming. The ACCC will take a more proactive role in regulating business mergers.
What to do:
- If you’re considering a merger or acquisition, seek strategic advice early
- Keep an eye on legislative progress
Updated R&D Tax Incentive Registration Form
The R&D Tax Incentive registration form has been updated. Applicants must now use the revised version on business.gov.au.
What to do:
- Use the current form for all future applications
- Ensure internal or external advisors are aware of the change
Supporting You Through Change
At Amarose Accounting, we help small businesses navigate change with clarity, confidence, and a plan. From payroll and tax compliance to strategic planning and Profit First cashflow strategies, we’re here to help you grow profit—not just on paper, but in your bank account.
Call: 0414 017 410
Email: admin@amarose.com.au
Book online: amarose.com.au
Disclaimer:
This blog is general in nature and does not constitute personal or financial advice. Always speak with Amarose Accounting or your trusted advisor before acting on this information.