Australian workers and businesses face July 1 tax and wage changes
From July 1, Australia's new financial year brings tax cuts, a minimum wage rise of up to 6%, same-day superannuation payments, and expanded parental leave.
Australia's new financial year, beginning July 1, will trigger a series of economic changes affecting millions of workers and businesses, from modest income tax relief to above-inflation wage increases and a revamp of superannuation payment timing.
Tax relief for lower earners
The current lowest income tax bracket—applying to income between A$18,201 and A$45,000—will fall from 16% to 15%. A worker earning A$45,000 will save A$268 annually under the change.
The federal government has also proposed an "instant" A$1,000 work-related tax deduction, set to begin this financial year pending parliamentary approval. The deduction is higher than the existing A$300 limit on receipt-free work expenses, and is forecast to benefit about 6.2 million Australians. However, workers claiming more than A$1,000 in work expenses will still be better off collecting receipts and claiming under the traditional method.
Minimum wage rises sharply
Around 2.8 million of Australia's lowest-paid workers will receive a 4.75% pay rise from July 1. Entry-level and minimum-wage workers—approximately 100,000 people—will get a steeper 5.97% increase. The national minimum wage will rise from A$24.95 an hour (A$948 per week) to A$26.44 an hour (A$1,004.90 per week).
Even after the new rises, Australia's lowest-paid employees will still have less buying power at the shops than they did five years ago.
Despite the above-inflation increase, the pay rise does not fully restore purchasing power eroded over the past five years.
Superannuation paid on payday
From July 1, all Australian businesses must pay employees' superannuation contributions on the same day as salaries. The change is expected to leave ordinary workers thousands of dollars better off over the long term and address a persistent problem of underpaid superannuation.
Parental leave expansion
Paid parental leave will increase by ten days to a total of 26 weeks from July 1, with payment rising to A$1,004.70 per week. The government says the boost will provide greater financial support to families, though recipients must still meet income and work tests.
Small business asset relief
Small businesses will benefit from a permanent extension of the instant asset write-off for assets costing less than A$20,000 from July 1.
Employers and workers seeking details on implementation can access additional resources from the Australian government.