All the money 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, Centrelink payment increases and new parental leave. See how it affects you.
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Major changes are set to roll out across Australia from July 1, with new wage increases, a rise in Centrelink payments and an overhaul to paid parental leave among the key changes.
The start of the new financial year usually brings about new money and tax changes as state and federal governments introduce new regulatory and legislative reforms.
We take a look at these new changes and whether they will mean you end up paying more or less.
MINIMUM WAGE AND WAGE REVIEWS
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.
SUPERANNUATION 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.
TAXES
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.
PARENTAL LEAVE
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.
COST OF LIVING RELIEF
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.
TEMPORARY SKILLED MIGRATION INCOME THRESHOLD
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.
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Originally published as All the money changes coming into effect from July 1, 2025 in Australia
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