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As the 30 June financial year‑end approaches, small businesses across Australia are preparing to finalise their tax obligations and lodge tax returns.
While reviewing accounts and meeting compliance requirements is vital, it’s equally important to understand the taxation changes that will apply from 1 July 2025.
At Pherrus, we help clients stay ahead of legislative updates and ensure their business remains compliant under the latest tax law changes.
Below, our experts outline the key taxation changes for the 2025–2026 financial year that may affect Australian businesses, households, and taxpayers.
Consistent communication, clear compliance, and reliable accounting support.
1. ASIC Fee Increases from 1 July 2025
Each year, the Australian Securities and Investments Commission (ASIC) adjusts fees in line with the Consumer Price Index (CPI). For the 2025–2026 financial year, these updated rates reflect modest inflationary adjustments passed through to Australian businesses.
Timely payment and accurate reporting are essential to avoid late lodgement penalties.
Businesses that fail to meet ASIC or ATO reporting and payment requirements may face enforcement actions or penalties.
Updated ASIC Fees as of 1 July 2025
| Service | Fee (2024–25) | Fee (2025–26) |
| Registering an Australian Company | $576 | $598 |
| Reserving a Company Name | $55 | $57 |
| Late Payment Fee (up to 1 month) | $93 | $96 |
| Late Payment Fee (over 1 month) | $374 | $386 |
| Application for Voluntary Deregistration | $44 | $46 |
| Proprietary Company Annual Review Fee | $310 | $323 |
| Public Company Annual Review Fee | $1,434 | $1,492 |
Businesses should confirm their review date and ensure company fees are paid on time to avoid late lodgement penalties.
The ATO and ASIC stress that timely payment and accurate reporting will help maintain business registration and reduce compliance risk.
Pherrus Tip: If you manage multiple entities, consider pre‑paying your annual review fees for budgeting efficiency and smoother tax time management.
Wage Increases, Tax Cuts, and Disposable Income Boosts
Following the 2025 Annual Wage Review, the Fair Work Commission approved a 3.75% National Minimum Wage increase, effective from the first full pay period on or after 1 July 2025.
Labor has played a key role in introducing these tax cuts and economic relief measures, supporting workers and providing benefits to the Australian workforce.
These wage adjustments, coupled with new tax cuts, represent a significant change in tax policy, with proposed modifications designed to impact taxpayers by providing benefits and adjusting tax brackets as part of the government’s Fair Deal Reform Package, designed to lift real wages and support household budgets.
In addition to wage and tax changes, the government is reforming the student loan repayment system to improve fairness, reduce debt, and provide cost-of-living relief.
Recent Australian tax law changes focus on cost-of-living relief through personal income tax cuts starting 1 July 2024 and expanding in 2026-27.
The increased low-income thresholds for the Medicare levy will provide tax relief for lower-income earners, with the Medicare levy low-income thresholds increasing by 4.7% for singles, families, and seniors from 1 July 2024.
The superannuation guarantee will increase to 12% on 1 July 2025. Every Australian taxpayer will receive a tax cut of $268 from 1 July 2026 and another $268 from 1 July 2027.
New National Minimum Wage (from 1 July 2025)
- $25.10 per hour, or
- $954.00 per week (based on a standard 38‑hour week)
Award Wage Adjustments
Most employees covered by Modern Awards will see an average increase of 3.5%, depending on their classification level.
Ensure base pay rates in registered agreements remain equal to or above the relevant award rate to maintain compliance with Fair Work obligations.
The government has also confirmed personal income tax cuts designed to provide relief to every Australian taxpayer, particularly those in the lower income brackets.
From 1 July 2024, and continuing into 2026–27 and 2027–28, taxpayers will benefit from a reduced cent tax rate across multiple brackets:
| Taxable Income Range | New Tax Rate (2025–26) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
These new tax cuts will help increase assessable income retention, lower overall tax payable, and enhance Australians’ ability to save and invest for the future.
Recent reforms to student debts and repayment thresholds will also make it easier for graduates, including those with engineering degrees, to manage their government student loans, reducing financial pressure and supporting long-term debt management.
Pherrus Tip: Plan ahead. The first round of these tax cuts began last year, and additional measures are expected to be legislated to support long‑term household savings through to 2027–28.
3. Superannuation Guarantee (SG) Increase: Now 12%
The Superannuation Guarantee (SG) which is the percentage employers must contribute to employee super accounts, continues its legislated increase.
Review your payroll software to ensure it is updated for the new SG rate.
The ATO has outlined official guidelines for employers to ensure compliance with the new superannuation guarantee rate.
Super Rates From 1 July 2025
- The SG rate increases from 11.5% to 12% on 1 July 2025.
- This affects all eligible employees (full‑time, part‑time, and casual).
The maximum super contribution base for 2025–26 rises to $65,320 per quarter, up from $62,270, which means employers must contribute up to $7,838.40 per quarter per employee.
The $450‑per‑month income threshold remains removed, securing super access for low‑income earners which is a major step in improving retirement outcomes and fairness within the super system.
Employers should review payroll software before 1 July to ensure updated contributions are automatically applied and that transactions meet ATO super payment deadlines.
4. Work‑Related Expenses, Deductions, and New Relief Measures
The 2025–2026 financial year introduces several updates to how Australian taxpayers claim work‑related expenses and deductions.
To ensure compliance with ATO requirements, it is crucial to maintain a detailed account of all relevant transactions and records throughout the year.
This level of record-keeping helps support accurate tax reporting and substantiates claims in the event of an audit.
Additionally, eligibility for certain deductions may be dependent on meeting specific ATO criteria or circumstances, so it is important to review the latest guidelines before lodging your return.
Key Changes for 2025–26
- The fixed‑rate method for claiming home office expenses increases from 67 cents to 70 cents per hour, reflecting updated energy and technology costs.
- A proposed automatic deduction of $1,000 for eligible work‑related expenses (without needing receipts) could be legislated this year, simplifying tax returns for millions of taxpayers.
The ATO has also renewed its focus on correct record‑keeping, including receipts, statements, and evidence of work‑related deductions.
Accurate reporting helps determine eligibility and prevents adjustments or penalties during audits.
Cost‑of‑Living & Household Support Measures
- Energy bill relief continues into 2025, with average power prices down 25.2% from 2024 levels, easing pressure on households and small businesses. These relief measures are supported by both state initiatives and the Commonwealth government, which is providing additional rebates to help lower electricity costs. Some energy bill relief programs and scheduled wage increases are set to end or be reviewed in December.
- Pharmaceutical Benefits Scheme (PBS) co‑payment lowered from $31.60 to $25.00 per script from 1 January 2026, further lowering out‑of‑pocket healthcare costs for Australians.
- Student debts will see reform: repayment thresholds rise, and compulsory repayment rates reduce for lower‑income earners, improving fairness and boosting disposable income.
Together, these government measures will help Australian families and businesses manage cost‑of‑living pressures, preparing for a more stable financial outlook through 2026 and beyond.
Why These Taxation Changes Matter for Small Businesses
Each of these taxation changes such as wage adjustments, new tax cuts, rising super rates, and policy reforms influences how businesses in Australia calculate pay, report income, and comply with legislation.
Effective preparation will help businesses manage assessable income, deductions, and reporting obligations, reducing risk when dealing with the ATO.
Businesses with debts exceeding $100,000 should note that the ATO can now publicly report overdue tax liabilities, so timely compliance is more important than ever.
When preparing for tax time, it’s critical to:
- Update payroll systems
- Adjust to the new 12% SG rate
- Review your investment deductions
- Record eligible work‑related expenses
- Verify ATO lodgement and payment dates
Businesses involved in property transactions should be aware that the capital gains tax regime for foreign residents now includes land, leases, and certain infrastructure.
Private company loans and their tax implications should also be reviewed in light of recent changes to ensure compliance.
If you’re unsure how to adapt to these changes, Pherrus Financial Services can help.
We’ll assess your business structure, determine eligibility for deductions, and ensure your accounts are optimised under the latest legislation.
Pherrus: Helping Australians Manage Taxation Changes with Confidence
At Pherrus Financial Services, we specialise in helping small businesses, families, and individual taxpayers navigate complex policy updates and evolving tax laws.
Our experts help clients:
- Review how new taxation changes affect your business
- Stay compliant with ATO, ASIC, and Fair Work regulations
- Access available government incentives and transitional support
- Improve business reporting, payroll, and cash flow
Contact us online to discuss your 2025–2026 tax strategy and ensure you reap the benefits of a strategy designed by experts.
FAQs
What are the Major Taxation Changes for 2025–2026 in Australia?
The major taxation changes include rises in the Superannuation Guarantee (11.5% → 12%), higher minimum wages, and new tax cuts across income brackets.
There are also updates to work‑related deductions, energy bill relief, and PBS co‑payments, improving disposable income and reducing living costs for Australian taxpayers.
How Do These Taxation Changes Affect Small Businesses?
The 2025–26 taxation changes will affect how small businesses pay staff, manage super contributions, and report expenses.
Higher wage and super thresholds increase costs slightly, but measures like the $20,000 instant asset write‑off remain available for eligible small businesses.
Accurate record‑keeping and tax planning are essential to save money and stay compliant.
When Do the New Taxation Changes Begin and What Effect Will They Have?
All major taxation changes take effect from 1 July 2025, with some cost‑of‑living and healthcare measures commencing 1 January 2026.
Employers should ensure payroll, superannuation, and reporting systems are updated before 30 June to avoid ATO or ASIC penalties.
Every Australian taxpayer will receive a tax cut of $268 in 2026-27 and a further $268 in 2027-28.
The average combined annual tax cut across all taxpayers is expected to be $2,548 in 2027-28.
Tax cuts will help ensure fiscal settings remain consistent with inflation sustainably remaining in the Reserve Bank of Australia’s target band.
The government’s tax cuts are expected to boost nominal household disposable income by 1.9 percent by 2027-28.
From 1 July 2026, employers are required to pay superannuation guarantee contributions on the same day as they pay wages, known as ‘Payday Super’.
From 1 July 2025, the general interest charge or shortfall interest charge on late tax payments will no longer be deductible for businesses.
What Work Related Expenses Can I Claim as Deductions?
From 1 July 2024, the government proposed an automatic deduction of A$1000 for work-related expenses without the need for substantiation.
The fixed rate for work from home expenses for 2024–25 is 70c per hour.
The cents per kilometre rate for work-related car expenses for 2024–25 is 88c per kilometre.
Owners of zero emissions electric vehicles (EVs) can use the EV home charging rate to calculate the cost of charging their vehicles at home if they meet the relevant requirements.
Small businesses with an aggregated turnover of less than A$10 million can claim an immediate deduction for the full cost of eligible assets costing less than A$20,000 under the instant asset write-off program.
How Will Changes in Capital Gains Tax and Foreign Resident Tax Laws Affect Property Transactions and Investments?
The foreign resident capital gains tax withholding rate increased from 12.5% to 15% for contracts entered on or after 1 January 2025.
The 15% withholding rate applies to the market value of all property contracts signed on or after 1 January 2025.
The A$750,000 property value threshold for foreign resident capital gains tax was removed starting 1 January 2025.
The CGT base for foreign residents includes land, leases, licences to use land, infrastructure, and machinery installed on land.
Australian residents selling property need a clearance certificate to avoid having an amount withheld from the sale price.
