What’s Changing on 1 July 2025?
With the start of the new financial year, 1 July 2025 brings a wave of policy changes affecting millions of Australians. From boosted Centrelink payments and an increased minimum wage, to longer paid parental leave and revised road fines, here’s everything you need to know for 2025–26.
Minimum Wage Increase
Australia’s national minimum wage has officially increased by 3.5%, bringing it to:
- $948.00 per week
- Or $24.95 per hour
This rise aims to help low-income workers keep up with inflation and rising living costs.
Who Benefits?
- Full-time and part-time employees on minimum awards
- Casual workers (with adjusted loading rates)
Centrelink Payments Indexation
As of 1 July 2025, Centrelink payments have been indexed by 2.4%, boosting support for millions of Australians.
Payments Affected:
- JobSeeker
- Youth Allowance
- Austudy & ABSTUDY
- Age Pension
- Disability Support Pension
- Carer Payment
- Rent Assistance
Key Change:
Asset and income thresholds for pension eligibility have also been increased, meaning more Australians may now qualify for part or full payments.
Paid Parental Leave Extension
A major win for families: Paid Parental Leave (PPL) has increased to 24 weeks from 1 July 2025.
What’s New:
- Increases from 22 weeks to 24 weeks
- Will expand to 26 weeks by 2026
- Available to both birth and adoptive parents
- Greater flexibility for split leave
Road Fines and Penalties
Several states have updated road fine structures starting 1 July 2025. These changes aim to reduce dangerous driving and encourage safe road use.
Notable Increases:
- Speeding fines have risen in most states
- Mobile phone use while driving now attracts higher demerit points
- Some states have introduced immediate license suspensions for high-risk offences
Superannuation Guarantee Increase
The Superannuation Guarantee has now increased to 12%, helping Australians build stronger retirement savings.
What It Means:
- Employers must now contribute 12% of ordinary time earnings into your super account
- Part of a staged increase from 9.5% (started in 2021)
Other Key 1 July 2025 Changes
- HECS-HELP Indexation Relief: Reduced indexation rate for student loans
- Medicare Levy Thresholds: Increased slightly to reflect wage growth
- Tax-Free Threshold: Remains unchanged
- Energy Bill Relief: Continued subsidies for eligible households
Final Thoughts: How to Prepare for the 2025–26 Financial Year
With these 1 July 2025 changes, now’s the time to:
- Review your Centrelink entitlements
- Check your updated payslip for wage and super changes
- Plan family leave around extended PPL
- Brush up on road rules to avoid penalties
- Consult a financial adviser if unsure about how these updates affect your situation
