For Australian Businesses: Key Changes from 1 July 2025

Key Financial and Regulatory Changes for Australian Businesses from 1 July 2025

Significant adjustments are set to take effect across Australia from 1 July 2025. Business owners must be aware of these new rules, which include changes to salary thresholds for skilled visas, the National Minimum Wage, superannuation rates, fee structures, and reporting obligations.

Skilled Visa Income Thresholds

From 1 July 2025, the income thresholds for sponsoring skilled foreign workers will increase by 4.6%.

• The Core Skills Income Threshold will be adjusted from $73,150 to $76,515.

• The Specialist Skills Income Threshold will rise from $135,000 to $141,210.

• The Temporary Skilled Migration Income Threshold (TSMIT) will also increase from $73,150 to $76,515.

For any new employer-sponsored nominations submitted on or after this date, the minimum annual salary paid to the visa holder must be at least $76,515, while also meeting the Australian market salary rate for the position. The remuneration of existing temporary visa holders and nominees with applications lodged prior to 1 July 2025, will not be impacted by this increase.

National Minimum Wage and Award Rates

Australia's lowest-paid workers are set to receive a pay boost, with the National Minimum Wage increasing by 3.5% from 1 July 2025. This increase also applies to minimum wages under modern awards.

The National Minimum Wage applies to employees who are not covered by an award or enterprise agreement. The change will bring the National Minimum Wage to $948 per week, or $24.95 per hour.

This new rate will apply from the first full pay period on or after 1 July 2025. For example, if a business's weekly pay period starts on a Wednesday, the new rates will apply from Wednesday, 2 July 2025. Most employees are covered by legal awards that outline minimum pay and conditions, and these award rates will also increase by 3.5%.

Superannuation and Tax Adjustments

From 1 July 2025, the superannuation guarantee rate will increase from 11.5% to 12%. This 12% rate must be applied to all salary and wages paid to eligible workers on and after this date, even if some or all of the pay period it relates to occurred before 1 July. Employers who fail to pay the minimum super guarantee amount on time and to the correct fund may be liable for the super guarantee charge (SGC).

In a separate change, superannuation will now be paid on government-funded Parental Leave Pay, known as the Paid Parental Leave Superannuation Contribution.

Furthermore, businesses will no longer be able to claim a tax deduction for any ATO interest incurred on or after 1 July 2025. This change makes tax debts more costly and means that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) can no longer be deducted. Interest charges incurred before this date can still be claimed as a deduction.

Corporate Fee Increases

In line with an increase in the Consumer Price Index (CPI), business and company fees will also rise from 1 July 2025.

The registration or renewal of a business name for one year will increase from $44 to $45, while the three-year fee will rise from $102 to $104.

The cost of registering a company will increase from $597 to $611, and the annual review fee for a proprietary company will be adjusted from $321 to $329.