- 1 July will bring financial changes to Australian workers and businesses
- These will see some receiving more pay
- Parental leave will also be extended another two weeks to 26 weeks from 1 July
The biggest changes will give some Australians a modest pay boost and usher in a new system for superannuation payments.
Here's a run-through:
Tax rate cut
Australia's lowest income tax rate will be cut from 16% to 15%, applying to the income tax bracket from $18,201 - $45,000.
It means the majority of Australian taxpayers will see a tax cut of up to $268, according to government calculations.
Lower-paid workers receive a pay increase
The national minimum wage will jump to $26.44 an hour (from $24.95 an hour), or to around $1,005 a week (from $948) for a 38-hour week.
Around 2.8 million workers paid under awards will also benefit from the increase.
This follows the Fair Work Commission approving a 4.75% increase to minimum and award wages on 2 June.
$1,000 tax deduction for workers
Although this 'instant', no-receipts-required tax deduction kicks in from 1 July for employees and sole traders, it will only apply to the 2026-27 tax year.
Receipts will still be required for lodging tax returns for the 2025-26 tax year, ending 30 June 2026.
For those who typically claim more than $1,000 a year in work expenses, receipts will still need to be kept.
Super paid on payday
Australian businesses will now need to pay employee superannuation on the same day their wages are paid.
This follows legislation passed in late 2025 in a bid to crack down on unpaid super and lost employee returns as a result of delayed or late super payments.
Under the old system, super could be paid quarterly.
Businesses can find out more about the new requirements via the Australian Taxation Office.
Super contribution cap also increases
Another change to super will see the concessional contribution cap lift to $32,500 per year (up from $30,000).
This is the amount Australians will be able to contribute annually via a total of employer payments and salary sacrifice.
The non-concessional contributions cap for after-tax contributions will also increase from $120,000 to $130,000.
The general transfer balance cap will lift to $2.1 million (from $2 million) from 1 July.
This is the highest amount of super that an individual can transfer into retirement phase.
Parental leave boost
Parental leave will be extended by 10 days to 26 weeks from 1 July, with the payment increasing to $1004.70 per week.
Parents are still required to meet an income test and work test to be eligible for the payments.
Partner leave entitlements will also increase from 15 to 20 reserved days.
Government payments and thresholds change
Some, but not all, Centrelink payment thresholds and limits will increase from 1 July.
Families receiving Family Tax Benefit Part A and Part B will see maximum payment rates rise.
Age pension and disability support pension income and asset test thresholds will also change on 1 July.
These determine who qualifies to receive the payments.
Payment rates are generally indexed two times a year (20 March and 20 September).
Asset and income test thresholds for some payments are adjusted from 1 July.
Medicare levy surcharge thresholds increase
Income thresholds for the Medicare levy surcharge will increase from 1 July - up to $105,000 for singles and $210,000 for families.
This is a surcharge levied on Australians who don't hold private hospital cover and is paid on top of the standard 2% Medicare levy.
Other hip pocket changes
Supermarket price-gouging laws
From 1 July, new laws apply to Australia's two major supermarkets (Coles and Woolworths) which can see them fined for charging "excessive prices".
Anti-scam register for SMS messages
Fake or scam messages should appear on mobile phones under a single "unverified" message thread from 1 July.
This follows government moves to stamp out scam SMS communications impersonating government and businesses.
However, the onus is on businesses and other groups to register their legitimate sender IDs or risk their messages appearing in the unverified thread.
Businesses and other organisations can do this through the SMS Sender ID Register via Australian Communications & Media Authority.
Anti-money laundering rules widen
Australia's anti-money laundering and counterterrorism financing laws (AML/CTF) will apply to more businesses including real estate agents, lawyers, accountants, and conveyancers.
The regulations will require them to meet new requirements including checking the identity or customers and reporting suspicious transactions.
Money changes on the way
Some recently announced federal budget tax changes do not apply from 1 July 2026.
These include:
- Negative gearing and capital gains tax changes are not due to take effect until 1 July 2027
- The Working Australians Tax Offset of an additional $250 a year applies from 1 July 2027
- The new 30% minimum tax on discretionary trusts is not due to take effect until 1 July 2028
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