A new financial year brings more than just a fresh set of books. From wage increases to energy rebates and changes to ATO debt, FY25–26 comes with updates that every Australian business owner needs to know. Staying across these changes ensures your business remains compliant while also helping you take advantage of new opportunities.
1. Minimum Wage Increased 3.5%
As of 1 July 2025, the national minimum wage has risen by 3.5%. The new rate is $24.95 per hour or $948 per week based on a 38-hour week. For businesses employing staff under award rates, this means higher payroll expenses.
How to prepare:
- Audit payroll to confirm payment rates are updated.
- Review award obligations, including allowances and penalty rates.
- Update forecasts to reflect increased staffing costs.
Pro tip: Rising wages don’t have to squeeze your margins. A business line of credit or short-term loan can help you manage payroll without disrupting operations. Visit cockatoo.com.au to explore flexible finance options.
2. Super Guarantee Increased to 12%
In line with the Federal Government’s retirement savings plan, the superannuation guarantee has increased from 11.5% to 12%. This applies to all eligible employees from 1 July 2025.
How to prepare:
- Update payroll and accounting systems.
- Factor increased super contributions into wage budgets.
- Communicate the change clearly with employees.
Reminder: Failure to meet super obligations can attract penalties, so ensure compliance from day one.
3. ATO Debt Just Got More Expensive
The ATO has removed the tax deductibility of General Interest Charges (GIC). In practice, this means you can no longer claim interest on overdue tax as a deduction. Businesses delaying tax payments may now face a bigger financial hit.
How to prepare:
- Review ATO payment plans and strategies.
- Consider using tax debt finance to clear obligations quickly.
- Avoid late payments to prevent compounding penalties.
4. Battery Rebates Now Available for Businesses
Good news: the Federal Government’s Energy Efficiency Improvement Scheme is offering rebates of up to $4,000 for eligible solar battery installations. This makes it easier for businesses to reduce energy bills and improve sustainability.
How to prepare:
- Check eligibility through your state or territory program.
- Assess whether solar batteries suit your location and usage.
- Use equipment finance to spread the upfront cost over manageable repayments.
5. Payroll Tax Changes in Victoria and the Northern Territory
Both Victoria and the Northern Territory have increased payroll tax-free thresholds, easing the burden for many SMEs.
- Victoria: Threshold lifted to $1 million.
- Northern Territory: Threshold increased to $2.5 million with new deduction formulas reducing tax for SMEs.
How to prepare:
- Confirm if your business falls under the new thresholds.
- Update forecasts with your tax agent.
- Plan how to reinvest any savings, whether for growth, hiring, or cash flow management.
Need Funding to Manage FY25–26 Changes?
From rising payroll costs to energy upgrades, many businesses will face new financial challenges and opportunities this year. Cockatoo can help you stay ahead with tailored loan comparisons from over 90 bank and non-bank lenders.
Get started with a free, no-obligation quote today at cockatoo.com.au.
FAQs: EOFY Changes for Australian SMEs
1. Why does the minimum wage increase matter for small businesses?
Because wages make up a large portion of business expenses, even small increases can significantly impact payroll and profitability.
2. How do I make sure I’m compliant with the super guarantee increase?
Check your payroll software, update contribution rates to 12%, and confirm with your accountant or bookkeeper.
3. What does the ATO debt change mean for SMEs?
Interest on late tax payments is no longer deductible, so overdue tax is now more costly. Clearing debts quickly is the best strategy.
4. Who can access solar battery rebates?
Eligibility varies by state and territory, but most SMEs investing in energy efficiency may qualify. Check local rebate schemes.
5. How can Cockatoo help with EOFY changes?
Cockatoo provides access to over 90 lenders, helping you secure the right finance to cover payroll, tax debt, or energy upgrades without straining cash flow.
✅ Bottom line: FY25–26 brings both challenges and opportunities for Australian SMEs. By staying on top of wage increases, tax changes, and rebates, you can protect your bottom line while setting up for growth. For personalised finance solutions, head to cockatoo.com.au today.
