What’s New from 1 July 2025?

Marketing Manager
Jun 17
3 min read

Updated: Jun 23

Key Tax, Super, and Business Changes You Need to Know

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What’s New from 1 July 2025?

The Start of the New Financial Year Comes with Big Changes

The clock resets on 1 July—and with it, comes a wave of changes that affect nearly every Australian taxpayer and business owner. Whether you’re filing your first return or running payroll for a growing team, staying on top of the new rules could save you thousands—and keep you compliant with the ATO.

Here’s your clear, jargon-free breakdown of what’s changing from 1 July 2025.

1. Superannuation Guarantee Increases to 12%

From 1 July 2025, the compulsory superannuation contribution rate rises from 11.5% to 12%.

What it means:

Employers must update payroll systems to reflect the new rate.
For employees on total package agreements, this may reduce take-home pay.
For employers, it's a higher wage cost per employee.

Tip: Review employment contracts now to confirm whether super is “inclusive” or “on top” of base salaries.

2. Stage 3 Tax Cuts Take Effect

Yes, it’s official. The reworked Stage 3 tax cuts are here.

Key income tax changes:

Taxable Income	New Rate (from 1 July 2025)
$18,201 – $45,000	16%
$45,001 – $135,000	30%
$135,001 – $190,000	37%
$190,001+	45%

This means millions of Aussies will see lower tax bills—and now is the time to revisit your salary packaging, super contributions, and deductions to maximise your benefit.

3. End of $20,000 Instant Asset Write-Off

The generous instant asset write-off (up to $20,000 for eligible small businesses) ends on 30 June 2025. From 1 July, the threshold drops significantly—likely to $1,000.

What it means:

You’ll need to depreciate new assets over time instead of claiming them in full.
Businesses should review procurement plans now.

Did you purchase assets before 30 June? Make sure they were installed and ready for use to qualify.

4. Super on Payday Reform (Coming Soon)

While not mandatory until 1 July 2026, the “super on payday” rule is on the horizon—meaning employers will need to pay super at the same time as wages.

Now is the time to:

Review your super clearinghouse setup
Start transitioning to more frequent contributions
Automate payroll to avoid ATO penalties

5. New Compliance Focus Areas from the ATO

Starting 1 July, the ATO is increasing its scrutiny in several key areas:

Payroll errors and missed super payments
STP (Single Touch Payroll) Phase 2 reporting accuracy
Recordkeeping compliance for small businesses
Unreported crypto income and gig economy side hustles

Tip: Use this time to audit your payroll, BAS, and reporting systems—and seek help early.

6. Tax Planning Now Matters More Than Ever

With tax cuts, super changes, and write-off reductions colliding in one financial year, strategic tax planning is no longer a “nice to have”—it’s essential.

Whether you’re a:

Sole trader looking to prepay expenses
SME planning asset purchases
Employee wanting to maximise deductions

Now is the time to book a chat with your accountant and get ahead of EOFY 2026.

Final Thoughts: Be Ready, Not Reactive

Black-and-white text reads "ARE YOU READY?" with a red question mark on black squares, suggesting urgency and excitement.

1 July isn’t just the start of a new financial year—it’s your opportunity to reset, restructure, and rethink your strategy.

At ProfitCloud.online, we help Aussies stay ahead with smart advice, modern tools, and clear action plans that make tax and compliance feel less overwhelming.