Australia is introducing new rules, and significant changes are set to kick in from next month. From July 1, several significant changes will take effect across Australia, including salary and superannuation guarantee rate increases and changes in the skilled visa income thresholds.

Beginning July 1, 2025, business owners will also face adjustments to the National Minimum Wage, registration costs, superannuation, energy bill refunds, and reporting obligations.

The Fair Work Commission’s ruling, issued earlier this month, will apply to more than 2.6 million Australians beginning with the first full pay period on or after July 1.

Skilled Visa Income Thresholds

From 1 July 2025, skilled visa income thresholds will increase by 4.6%. The Core Skills Income Threshold will increase from $73,150 to $76,515 , while the Specialist Skills Income Threshold will increase from $135,000 to $141,210. The Temporary Skilled Migration Income Threshold (TSMIT) will also increase from $73,150 to $76,515.

Australia’s lowest-paid workers will receive a pay boost from 1 July, with the national minimum wage increasing by 3.5 per cent.

The minimum annual earnings that must be paid to the visa holder and the Australian market salary rate for the nominated position must be at least AUD76,515 for new employer-sponsored nomination applications submitted on or after July 1, 2025.

The remuneration of existing temporary visa holders and nominees who have lodged nomination applications before July 1, 2025, will not affected by the increase.

National Minimum Wage

From 1 July 2025, the National Minimum Wage will also increase by 3.5%. The Commission has set a 3.5% increase effective 1 July 2025 to the National Minimum Wage and the Minimum Award Wages.

The National Minimum Wage applies to employees who aren’t covered by an award or enterprise agreement. From 1 July 2025, the National Minimum Wage will increase by 3.5%. This means the National Minimum Wage will be $948 per week, or $24.95 per hour.

The new National Minimum Wage will apply from the first full pay period on or after 1 July 2025. This means if your weekly pay period starts on Wednesday, the new rates will apply from Wednesday, 2 July 2025.

Most employees are covered by an award. Awards are legal documents that outline minimum pay rates and conditions of employment in an industry or occupation. The Commission has set a 3.5% increase to minimum wages under awards.

Other Changes

From 1 July 2025, the superannuation guarantee rate will increase from 11.5% to 12%. The super guarantee charge (SGC) applies when employers do not pay the minimum amount of super guarantee (SG) for their eligible employees to the correct fund by the due date.

The 12% rate will need to be applied to all salary and wages paid to eligible workers on and after 1 July. This is even if some or all of the pay period it relates to is before 1 July.

From 1 July, the Australian Taxation Office (ATO) will pay superannuation on government-funded Parental Leave Pay (known as the Paid Parental Leave Superannuation Contribution).

You can no longer claim a tax deduction for any ATO interest incurred on or after 1 July 2025, making tax debts more costly for small businesses.

This means that you can no longer deduct General Interest Charge (GIC) and Shortfall Interest Charge (SIC) incurred on or after 1 July 2025 in your income tax return for income years starting on or after 1 July 2025. Interest charged by the ATO that was incurred before 1 July 2025 can still be claimed as a deduction this tax time.

In line with an increase in the Consumer Price Index (CPI) for the March quarter, the Australian Securities and Investment Commission (ASIC) will increase business name fees from 1 July 2025. The registration or renewal for one year will increase from $44 to $45, and the registration or renewal for three years will increase from $102 to $104.

ASIC will also increase company registration and annual review fees from 1 July 2025. The cost of registering a company will increase from $597 to $611. The annual review fee for a proprietary company will increase from $321 to $329.