From wages to rebates: Key EOFY changes for Australian SMEs

From wage increases to energy rebates and changes to ATO debt, a new financial year brings more than just a fresh set of books. Whether you're navigating higher payroll costs or looking to take advantage of new incentives, here’s what every Australian business owner should know heading into FY25–26.

1. Minimum wage increased 3.5%

Effective 1 July 2025, the national minimum wage has increased 3.5%—now sitting at $24.95 per hour, or $948 per week (based on a 38-hour week). If your team is on award rates, this change will likely increase your payroll expenses. 

How to prepare:

• Audit your payroll and make sure your payment rates are up-to-date.
• Check that award obligations are being met, including penalty rates and allowances.
• Update your budgeting forecasts to reflect increased staffing costs.

Pro tip: If you need to cover higher wages, a business line of credit or short-term loan can help soften the impact. Speak with one of our brokers and learn how you can manage increased payroll costs without disrupting your operations.

2. Super guarantee increased to 12%

As part of the government’s long-term plan to improve retirement outcomes for Australians, the super guarantee has increased from 11.5% to 12%. This change applies to all eligible employees and must be reflected in your payroll from 1 July 2025.

How to prepare:

• Review your payroll software and accounting systems to ensure they reflect the increase.
• Factor increased super contributions into your wage cost forecasts.
• Communicate with your employees so they understand the change in their pay structure.‍

Note: Failure to meet your super obligations can lead to penalties, so staying compliant from day one is critical.

3. ATO debt just got more expensive

The ATO has removed the tax deductibility of general interest charges (GIC). In other words, you can no longer claim interest on overdue tax payments as a tax deduction. This change is designed to encourage timely payments—and it means that late payments can now have a greater financial impact on your business.

How to prepare:

• If you’ve been deferring tax bills or managing ATO payment plans, it may be time to review your strategy.
• Consider using tax debt finance to clear your obligations quickly and avoid compounding penalties.
  

4. Battery rebates are now available for eligible businesses

On a positive EOFY development, the Federal Government’s Energy Efficiency Improvement Scheme is now offering rebates of up to $4,000 for eligible solar battery installations.

How to prepare:

• Check your eligibility through your state or territory’s energy rebate programs.
• Consider whether a solar battery investment makes sense for your business’s location and usage patterns.

Pro tip: If you’re interested in an energy upgrade but worried about upfront costs, an equipment loan lets you spread the cost over manageable repayments—so you can buy big-ticket items without draining your cash flow.

5. Payroll tax increased in Victoria and the Northern Territory

Payroll tax thresholds have been increased in Victoria and the Northern Territory, easing pressure on eligible businesses. This frees up capital to allocate to other areas—think new hires or expansion plans—a boost that is especially helpful heading into the new financial year.

• Victoria: Payroll tax-free threshold increased to $1 million.
• Northern Territory: Threshold increased to $2.5 million, with new deduction formulas in place to lower the payroll tax burden for eligible SMEs.

How to prepare:

• Check if your payroll expenses fall under the new thresholds.
• Speak with your tax agent to update your payroll tax forecast.
• Decide how to use any savings, based on your business plan and goals.

Need funding to manage EOFY changes?

Whether you're covering rising payroll costs, upgrading your energy systems, or simply planning for growth in the new financial year, we’re here to help. Tell us a bit about your loan needs and immediately receive quotes from over 90 bank and non-bank lenders. Confirm your quote and let us handle your loan approval so you can focus on what matters—your business. Ready to move forward? Get a free, no-obligation quote today.