- July 2, 2025
- Posted by: admin
- Category: Insights
From payroll to superannuation, deduction limits to industrial relations updates, 1 July 2025 brings a raft of changes that could impact your cashflow, tax position and compliance burden. If your business operates in Western Australia, or has any exposure to national standards, these are not things to leave until “later”. This article outlines the key shifts, why they matter, and what you need to do now.
Minimum Wage & Award Rates Increase:
From the first full payperiod on or after 1 July, the national minimum wage rises to $24.95/hour and the WA state minimum wage to $25.08/hour, reflecting increases of 3.5 % and 3.75 % respectively.
Why it matters: Labourintensive businesses (retail, hospitality, construction) will see higher base costs. You’ll need to adjust your payroll budgets, contract pricing or service margins accordingly.
Action now: Review all roles, wage budgets, employment contracts and pricing models by June. Implement systems to capture award/awardfree distinctions.
Superannuation Guarantee Increases to 12 %:
The super guarantee rate rises to 12 % for salary/wages paid on or after 1 July.
Why it matters: For companies with significant wage bills, the increase affects both cost and compliance. Underpayment or incorrect treatment will carry risk.
Action now: Update payroll systems, communicate to employees if costsharing occurs, and check cashflow to absorb the increase.
Interest on ATO Tax Debts No Longer Deductible:
From 1 July 2025, interest charged by the Australian Taxation Office for late or underpayments will not be tax deductible.
Why it matters: Any business with tax debt or late filings must reconsider the cost of inaction; what used to be deductible now adds to taxable income.
Action now: Review outstanding tax liabilities, ensure lodgements and payments are on time, and adjust forecasts for potential tax cost increases.
StateBudget & Incentive Updates for WA:
The 202526 WA budget delivers surplus, yet little fresh broadbased tax relief for business; some state incentives remain but the signal is for prudent cost management.
Why it matters: For business owners, this means fewer “easy wins” from state tax reform and a greater focus on internal efficiency and strategic tax planning.
Action now: Use this period to review internal processes, implement taxoptimisation strategies and strengthen your business’s resilience to potential future cost pressures.
Workplace Law & Compliance Changes Looming:
With updated employmentlaw systems operating in WA (state vs national) and new obligations such as the “right to disconnect” to be introduced, business owners must stay alert.
Why it matters: Noncompliance could carry penalties and reputational damage. Businesses must audit employmentcontracts and systems now.
Action now: Ensure that you’ve identified which employment law system applies, revise employmentpolicies, consider payroll and HR integration and train staff accordingly.
Conclusion
These changes mark a turning point for many businesses in WA. They’re not just administrative; they influence cost structures, tax positions, compliance risk and strategic planning. If you’re uncertain about how these affect your business, or require help mapping the impacts and preparing for them, our team at JN Accountants is ready to assist.
Contact us to arrange a complimentary review of your business in light of 1st July 2025 changes.