The New Financial Year Starts in Your Favour. Here's What Changes.

Six changes land on July 1 that affect what you earn, what you keep, and what your business owes. Most of them work in your favour. Some require action before the week is out.

Here's the full picture.

Your pay

The national minimum wage rises to $26.44 an hour, or $1,004.90 a week, a 5.97 per cent increase from $24.95. Modern award rates rise 4.75 per cent across the board, flowing through to all 2.8 million workers covered by awards. If you're on the minimum wage full-time, that's roughly $3,000 more per year before tax.

Your tax

The lowest income tax rate drops from 16 to 15 per cent on earnings between $18,201 and $45,000. For anyone earning $45,000 or more, that's $268 back over the year.

The Medicare Levy Surcharge thresholds also move, from $93,000 to $105,000 for singles and from $186,000 to $210,000 for families. If you earn in that range and don't hold private health cover, check whether you've just dropped below the line. That could save you roughly one per cent of your income.

Your super

This is the change most people haven't heard about. From July 1, your employer must pay your super within seven business days of each payday. Not quarterly. Every pay cycle.

Under the old system, contributions could sit in your employer's account for up to three months before reaching your fund. That was three months of investment returns you never earned. Over a 30-year career, the compounding effect of getting your money invested months earlier adds up to thousands at retirement.

Contribution caps are also increasing. The concessional cap goes from $30,000 to $32,500. The non-concessional cap moves from $120,000 to $130,000.

Your family

Paid Parental Leave extends to 26 weeks, up from 24. Partner-reserved days increase from 15 to 20. And for the first time, super will be paid on government-funded parental leave at 12 per cent.

Your business

The $20,000 instant asset write-off is now permanent for businesses with turnover under $10 million. That changes how you think about equipment purchases. There's no longer a June 30 cliff. Plan around business need, not the tax calendar.

Eligible companies can also carry back losses against the prior two years' tax and claim refunds, with roughly 85,000 businesses expected to benefit.

But there are costs going up too. Company registration rises from $611 to $636. Business name renewals go from $45 to $47. And new anti-money laundering obligations expand to real estate, legal, and accounting businesses.

What employers need to do now

Payday super is the one that needs immediate action. If you batch super quarterly, that ends next week. Every pay run now triggers a seven-business-day deadline to get contributions into your employees' funds.

The Small Business Super Clearing House is closing permanently. If you use it, you need a commercial alternative set up before it shuts.

Update award rates in your payroll before the first full pay period on or after July 1. The wage increase flows through to every award classification, not just the minimum.

And if you send branded text messages to customers, the new SMS Sender ID Register requires you to register through your telco or provider.

The net position

A full-time minimum wage worker comes out roughly $3,200 ahead over the next year from the pay rise and tax cut combined, before counting faster super compounding and expanded parental leave.

For employers, the compliance load is real, particularly payday super. But the permanent instant asset write-off and loss carry-back give you more flexibility to invest on your own timeline.

The new financial year starts better than most people realise. The changes are there. You just need to know where to look.

This article is general information only and is not financial advice.