top of page

📢 End of Financial Year Updates: ATO & Fair Work Announcements for Employers

2 days ago

3 min read

1

1

0

As the new financial year begins, employers must stay across important updates from the Australian Taxation Office (ATO) and the Fair Work Commission. Below is a summary of key changes effective from 1 July 2025, including superannuation, PAYG, STP, and minimum wage adjustments.

🧾 ATO: Upcoming Employer Obligations


The ATO has issued guidance for employers and tax practitioners as we transition into the 2025–26 financial year. Here are the critical items to note(source):


✅ Super Guarantee (SG)

  • 1.5% SG rate applies to salary and wages paid before 1 July, even if the work was performed in June.

  • From 1 July 2025, the super guarantee rate increases to 12%.

    • This new 12% rate applies to any salary or wage paid on or after 1 July, regardless of when the work was performed.


✅ PAYG Withholding

  • From 1 July, some withholding schedules and tax tables will be updated.

  • Make sure to:

    • Use the latest tax tables, or

    • Use the ATO tax withheld calculator to correctly calculate PAYG withholding.


✅ Single Touch Payroll (STP)

  • STP Finalisation: Employers must complete the STP finalisation declaration by 14 July 2025.

  • This ensures employees can access their income statements via myGov for tax return preparation (ATO source).


💼 Fair Work Commission: National Minimum Wage Increase

The Fair Work Commission has confirmed a 3.5% increase to the national minimum wage, effective 1 July 2025 (Fair Work Commission source).

🔺 New Minimum Wage:

  • Old rate: $24.10 per hour

  • New rate (from 1 July 2025): $24.94 per hour

Employers must ensure payroll systems are updated accordingly for any employees on award or minimum wage rates.


What Employers Should Do Now:

✅ Review and adjust payroll systems for the 12% super rate from 1 July.

✅ Confirm STP declarations are ready for finalisation by 14 July.

✅ Update PAYG withholding based on new tax tables.

✅ Ensure minimum wage adjustments are implemented in your HR/payroll system.

✅ Communicate changes to your team and bookkeepers.


📆 Important Dates Summary

Obligation

Effective Date

Action Required

SG rate increases to 12%

1 July 2025

Adjust payroll calculations

New minimum wage: $24.94/hr

1 July 2025

Update award-based employee pay rates

PAYG tax tables update

1 July 2025

Use correct rates or calculator

STP Finalisation due

14 July 2025

Submit final declaration to ATO

📚 Sources:

  • Australian Taxation Office – Superannuation for Employers (Accessed July 2025)

  • Australian Taxation Office – Tax Withheld Calculator

  • Australian Taxation Office – STP Guidelines

  • Fair Work Commission – Annual Wage Review 2025 (Accessed July 2025)


⚖️ Disclaimer


The information contained in this blog post is general in nature and is for informational purposes only. It does not constitute legal, financial, or tax advice, nor should it be relied upon as such. While we strive to ensure the information is accurate and up to date at the time of publication, we recommend consulting with a qualified accountant, tax adviser, or employment law specialist for advice tailored to your specific circumstances.


This post references publicly available information from the Australian Taxation Office (ATO) and Fair Work Commission as of July 2025. Please refer to the official government websites for the most current updates.



📬 Need Help?

Reach out to your bookkeeper, payroll officer, or accountant to ensure you're compliant with the latest employer obligations.


Want to stay updated? Subscribe to our newsletter or Contact us for guidance.


2 days ago

3 min read

1

1

0

Related Posts

Comments

Share Your ThoughtsBe the first to write a comment.
Logo.png

Business hours:

Monday to Friday 

From 9:00 AM to 5:30 PM.

Email: admin@gafaccounting.com.au
Liability limited by a scheme approved under Professional Standards Legislation.

 

bottom of page