The new financial year has brought one of the biggest rule resets in years, and every change below is already in effect. Here is what needs action this week, where the opportunities sit, and what CAFA clients will notice in how we work with you.
Payday Super has started. From 1 July, employers must pay super at the same time as wages, not quarterly. Contributions must reach your employees' funds within seven business days of each payday (20 business days for a new employee's first payment), and super is now reported through Single Touch Payroll every pay cycle. If you were using the ATO's Small Business Super Clearing House, it has closed permanently, so you need an alternative in place before your next pay run.
Wage rates have increased. The National Minimum Wage is now $26.44 per hour ($1,005 per week) and modern award rates rose 4.75%. The new rates apply from the first full pay period starting on or after 1 July, which for most businesses means this week or next. PAYG withholding tables have also changed, with the lowest marginal rate dropping from 16% to 15%, so make sure your payroll software has taken the update.
Loss carry back is back, permanently. If your company paid tax in 2024-25 or 2025-26 and is heading into a loss year, you may be able to carry that loss back and receive a cash refund rather than waiting years for future profits to absorb it. It applies to companies with aggregated turnover under $1 billion, covers revenue losses only, and is capped by your franking account balance. If FY2027 is shaping up as a tough year, talk to us early so we can build it into your planning.
Super caps have increased. The concessional contributions cap is now $32,500 (up from $30,000) and the non-concessional cap is $130,000. If you have a salary sacrifice arrangement or are planning director contributions, the start of the year is the time to review it, not June.
The $20,000 instant asset write-off is now permanent. Small businesses with turnover under $10 million can immediately deduct eligible assets costing less than $20,000, with no more waiting on annual extensions. You can now plan asset purchases with certainty.
ASIC fees went up on 1 July. Company registration is now $636, the annual review fee for a proprietary company is $342, and business name renewals are $47 for one year or $108 for three years.
Paid Parental Leave has expanded to 26 weeks (130 days) for children born or adopted from 1 July 2026, with 20 days reserved for a partner. Payments are government funded, but factor the longer leave periods into your workforce planning.
Branded text messages now need registered sender IDs. Messages from unregistered branded sender IDs display as "Unverified" on customers' phones and may be grouped with scam messages. If your business sends branded SMS, check with your telco or messaging provider.
From 1 July, accounting practices operate under Australia's expanded anti-money laundering and counter-terrorism financing laws. When we set up companies, trusts or SMSFs for you, we are now legally required to verify your identity and keep records before the work can proceed. You will start seeing identity verification requests from us as a standard part of these engagements. The same rules now apply to lawyers, conveyancers and real estate agents, and we have built the process into our workflow to keep it as quick and painless as possible.
Lodgment season for 2025-26 has just opened, and two of the headline changes do not apply to the return you are about to lodge. The $1,000 instant work-related deduction and the 15% tax rate both apply to the 2026-27 year, so the benefit shows up in next year's return, not this one.
If any of these changes raise questions for your business, contact the CAFA Group team or book a time with us.
This article is general information only and does not take your personal circumstances into account. It is not financial, tax or legal advice. Speak to us before acting on anything above.