All the legal changes coming into effect from July 1, 2025 in Australia

Major changes are set to roll out across Australia from July 1, including wage hikes, new parental leave and tougher road rules. See how it will affect you.

Major changes are set to roll out across Australia from July 1, with new wage increases, expanded parental leave entitlements, and tougher road rules among the key changes.

The start of the new financial year is usually used by state and federal governments to introduce a wave of regulatory and legislative reforms.

Here is everything you need to know about the new changes.

NEW TOBACCO LAWS

Nationally, the type of products smokers can buy is set to change from July 1.

In the new financial year, a raft of changes to tobacco sales will come into effect, with many of the changes already implemented.

• A ban on flavoured or menthol cigarettes
• A ban on descriptions like “smooth” and “gold”
• Standardised packaging to include: Packets cannot contain more than 20 cigarettes; Cigarette size and shape will become standardised; New health information to be included.

NSW and Victorian governments will also crack down on tobacco with new licensing schemes. Picture: AFP

In addition to national laws, the NSW and Victorian governments will also crack down on tobacco with new licensing schemes.

NSW

From July 1, NSW will introduce a tobacco licensing scheme for the first time. Retail businesses selling tobacco and non-tobacco smoking products will be required to notify NSW Health, with stiff penalties for any breaches.

VICTORIA

From July 1, tobacco retailers and wholesalers will be required to apply for a licence to sell tobacco products.

Tough penalties will apply for those found contravening the new regulations, inducing a fine of $829,878 for anyone operating without a licence or caught possessing or selling illicit tobacco. For an individual, it is $165,975, or five years prison.

SUPER AND PENSION PAYMENTS

Thresholds for the income and asset tests for the age pension will lift by 2.4 per cent. The value of assets pensioners can own while receiving a full pension, and the weekly income they can take from work and their super, will also increase.

The superannuation guarantee, which is the minimum amount employers must contribute to their employees’ super, is set to rise from 11.5 per cent to 12 per cent.

The new rate applies to all salary and wages paid on or after July 1, even if the work was performed before that date.

Along with the increase, the federal government will start paying superannuation on its paid parental leave scheme for the first time.

The maximum super contribution base will meanwhile decrease from $65,070 to $62,500.

In Tasmania, RBF Life Pensions, Interim Invalidity Pensions, and Parliamentary Pensions will be indexed in-line with reflation and a Consumer Price Index of 1.150 per cent on July 1.

To receive the age pension from Centrelink, you need to be 67 years or older and pass an income and asset test.

INCREASE TO MINIMUM WAGE

The minimum wage will increase by 3.5 per cent from July 1.

The Fair Work Commission has approved the increase in the national minimum award to $948 per week or $24.95 per hour, which will apply from the first full pay period starting on or after July 1. The minimum award wages will increase by the same percentage.

PAID PARENTAL LEAVE OVERHAUL

From July 1, Australian families will receive more support under an expanded paid parental leave scheme, with the length of government-funded leave increasing from 20 to 22 weeks.

The change is part of a broader federal plan to extend the scheme to 26 weeks by July 2026 — the equivalent of six months’ paid leave. Once fully implemented, eligible families will receive around $24,000 in support following the birth or adoption of a child.

The policy aims to give parents more time at home with their newborns and greater flexibility in how they take leave.

Parents can choose to take time off together or separately and can spread the leave over two years, supporting staggered returns to work or shared caregiving arrangements.

Meanwhile, a new Community Services Industry portable long service leave scheme will be introduced in NSW, giving workers in the community services industry, who often work with multiple employers, access to long service leave after seven years of service to the industry with one or more employers.

Australian families will receive more support under an expanded paid parental leave scheme, with the length of government-funded leave increasing from 20 to 22 weeks.

IMMIGRATION CHANGES FOR SKILLED WORKERS

Skilled visa income thresholds will be increased by 4.6 per cent from July 1, when the annual indexation takes effect.

The Core Skills Income Threshold and Temporary Skilled Migration Income Threshold will increase from $73,150 to $76,515 while the Specialist Skills Income Threshold will increase to $141,210.

This change will not apply to existing visa holders and nominations lodged before 1 July 2025.

TOUGHER ROAD RULES

From July 1, NSW drivers face tougher penalties for mobile phone use, with fines of up to $1,209 and five demerit points — even if caught using their phone while stationary at traffic lights.

In Victoria, road rules requiring drivers to slow to 40 km/h for emergency vehicles will be expanded to include tow trucks, roadside assistance, and incident response workers.

Queensland motorists will be hit with a 3.4 per cent increase in both vehicle registration fees and traffic fines.

Nationwide, AI-powered cameras that detect mobile phone use behind the wheel will be rolled out as part of a broader crackdown on distracted driving.

INCREASE TO TAX FREE THRESHOLD 

From July 1, families receiving Family Tax Benefit (FTB) Part A will see an increase in payments, with the maximum rate rising to $227.36 per fortnight for children under 13, and $295.82 for those aged 13 and over.

The maximum rate of FTB Part B will also increase to $193.34 per fortnight, or $134.96 for families whose youngest child is five or older.

These annual adjustments, introduced in 2000, have been maintained by both Labor and Coalition governments.

In Victoria, the payroll tax free threshold will increase from July 1 to will be lifted from $900,000 to $1,000,000 for annual returns, and from $75,000 to $83,333 for monthly returns.

In the Northern Territory, the payroll tax-free threshold will increase to $2.5m on July 1, with maximum annual deductions also increased to $2.5 million.

Millions of Australians will also see a boost to their Centrelink payments, with a 2.4 per cent increase to help ease the rising cost of living.

COST OF LIVING

Millions of Australians will also see a boost to their Centrelink payments, with a 2.4 per cent increase to help ease the rising cost of living.

The South Australian government will implement cost of living measures from July 1, including capping the price of a 28-day student pass on the MetroCard to $10 – down from $28.60. The change means a trip for a student on public transport will cost about 25c.

In Victoria, the Victorian Default Offer, a set electricity price, will be set at $1675 from July 1.

For Tasmania, TasWater will raise its prices by 3.5 per cent from July 1, with the average residential customer set to pay an extra 12 cents per day.

NEW STRATA AND COMMUNITY LAND LAWS

A raft of changes to strata in NSW will come into effect from July 1. They include new strata committee duties, protection for owners in strata from unfair terms, increased penalties for developers, and other improvements to strata laws.

Community land law changes will also take effect in NSW, including ensuring that sustainability is discussed during annual general meetings, that requests to change association property for accessibility infrastructure only needs a majority vote at an association meeting, and that by-laws don’t ban sustainability infrastructure based on appearance – except if it is a heritage property.

Improved protections for NSW renters will come into effect, including making it easier for accessibility infrastructure to be installed, providing evidence that an animal is an assistance animal, and obtaining approval for minor renovations.

In Queensland, annual rent and eligibility checks for all social housing tenants will be reintroduced. The checks will confirm if tenants still meet income thresholds.

Originally published as All the legal changes coming into effect from July 1, 2025 in Australia