The new financial year means businesses need to be on their toes and aware of some important changes.
Changes which came into effect on July 01 may effect day-to-day operations and ongoing taxation.
For the new financial year business operators need to be aware of amendments to:
*Business name registration fees – 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. Registration or renewal for one year will increase from $44 to $45. Registration or renewal for three years will increase from $102 to $104.
* Company fees – 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.
* National Minimum Wage – will increase by 3.5%. The new National Minimum Wage will be $24.95 per hour, or $948 per week, applied from the first full pay period starting on or after 1 July 2025.
* Super guarantee rate increase – from 11.5% to 12%. The 12% rate will need to be applied for 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. This is the final scheduled increase.
* Paid Parental Leave Superannuation Contribution – the Australian Taxation Office (ATO) will pay superannuation on government-funded Parental Leave Pay (known as the Paid Parental Leave Superannuation Contribution).
* Denying deductions for ATO interest charges – 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 business. 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.
* Energy Bill Relief Fund – Eligible small businesses with electricity bills may receive up to $150 in energy bill rebates from 1 July, 2025, to the end of 2025. Rebates will be automatically applied to electricity bills in two $75 quarterly installments.
* Skilled visa income thresholds – will increase by 4.6%. Core Skills Income Threshold (CSIT) will increase from $73,150 to $76,515, Specialist Skills Income Threshold (SSIT) will increase from $135,000 to $141,210, and the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $73,150 to $76,515.
* Right to disconnect will apply to small businesses – From 26 August, 2025, eligible employees will have the right to refuse employer or third-party contact outside of working hours.
* Environmentally Sustainable Procurement Policy – Already in place for the construction services procurements, for the new financial year the policy will also apply to furniture, fittings and equipment (FFE), ICT goods, and textiles for procurements valued at or above $1 million. Business which supply these goods or services to the government will be required to undertake activities to substantiate environmental claims and demonstrate compliance with the policy.
* Merger reform – businesses contemplating acquisitions which meet certain thresholds must notify the Australian Competition and Consumer Commission (ACCC) and wait for approval before their proposed acquisition can proceed. The new mandatory merger notification requirements start on 1 January, 2026, but businesses can start using the new regime on a voluntary basis from 1 July 2025.
* Small tax practitioners must comply with new Code obligations – tax practitioners with 100 or less employees will be under stricter ethical and operational requirements for the new financial year.
* Updated R&D Tax Incentive registration form – From 15 August, 2025, an updated version of the R&DTI registration form will be available on the R&DTI customer portal. The existing form can be used until this date. Any applications submitted after 15 August, 2025, will be required to use the new form. Any draft forms saved within the portal will no longer be available from 15 August, 2025.
For more detail on the changes, go to business.gov.au.