The Big Changes This Financial Year
The new financial year is underway and it’s important to turn your attention to the things that are changing, and what it means for your finances.
July often brings legislative and policy shifts that will mean opportunities for new financial strategies, and we’re here to help you manage it with confidence. Here are the big things that will help you this financial year:
1. Higher Superannuation Guarantee
After several years of incremental increases, the superannuation guarantee has officially risen to 12%.
This change means employers are now required to contribute more into employees’ super accounts (provided you’re not on a total remuneration package where the increase could come out of your base pay).
It’s a good time to check your payslip and ensure your super contributions reflect the new rate. If you’re unsure whether your rate is correct, we can help to work it all out and discuss whether a new superannuation strategy will work best for your situation.
As a sneak peek to next year, from July 1, 2026, Australian employers will be required to pay employee superannuation contributions at the same time as their salary and wages, rather than on a quarterly basis. This means superannuation will be paid on payday, alongside ordinary time earnings (OTE) payments.
2. Superannuation Accrues for Paid Parental Leave
It’s widely recognised that a key contributor to the superannuation gap is the lack of contributions during periods of parental leave.
The great news for parents, especially women, is that for the first time, government-funded paid parental leave will accrue superannuation.
Not only is this a big win if you’re planning to have children, the leave entitlement has increased to 24 weeks from 22 weeks! Extra time to spend with your loved ones during this period can make a very positive difference.
3. Increase to the Minimum Wage
The national minimum wage has increased by 3.5%, now sitting at $24.94 per hour. Award wages have risen by the same percentage. The cost-of-living crisis heavily affects our lowest paid workers, so an increase will be helpful to many Australians.
4. Pension Adjustments
Age pension payments have seen modest increases: $34.50 a fortnight for couples and $22.50 for singles. Changes to asset thresholds also mean some retirees may now qualify for higher payments or become eligible for the first time. It’s worth reviewing your position to see if your entitlements have shifted!
5. Changes to Tax Deductions
From 1 July, interest charged by the ATO on unpaid tax debts is no longer tax-deductible.
If you have an outstanding tax debt or other overdue ATO payments, the interest charged can no longer be claimed as a tax deduction.
The goal with this change is to encourage timely payments and reduce the cost burden on the broader community. If it’s time to look at minimising this debt this financial year, we’re here to help!
Final Thoughts
As always, new financial years bring both opportunity and complexity. A quick review of your personal finances now, before the year gets into full swing, can make all the difference.
Staying informed and having a strategy in place is the best step toward financial confidence.
Need help navigating the changes? At White Rabbit Advisory, we’re here to guide you through the year ahead.
White Rabbit Advisory Pty Ltd is a registered tax (financial) adviser and any reference to tax advice contained in this document is incidental to the general financial advice it may contain. You should seek specialist advice from a tax professional to confirm the impact of this advice on your overall tax position. You should obtain financial advice relevant to your circumstances before making financial decisions. Whilst every care has been taken in the preparation of this information, it may not remain current after the date of publication and White Rabbit Advisory Pty Ltd and its related bodies make no representation as to its accuracy or completeness. Published: May 2025 © Copyright 2025