A range of changes will take effect from Wednesday, 1 July, as the new financial year brings updates to policies, prices and thresholds across Australia.
From higher wages and more frequent superannuation contributions for workers, to expanded paid parental leave and lower electricity prices for many households on the east coast, some Australians are set to receive a financial boost.
However, not every change will be welcome. The tapering of the fuel excise subsidy, annual NBN price increases, a new tax on high superannuation balances, and a range of state-based policy and fee changes are set to push costs higher for some households.
Canstar has compiled a list of major changes below.
The good stuff
Tax cuts: Pretty much every worker is a winner. The 16% tax rate, paid by anyone who earns over $18,200 a year, is dropping to 15% from 1 July. This translates into a saving of up to $268 over the next financial year. Then, on 1 July next year, it drops by another percentage point down to 14%, which will translate into a total saving of up to $536.
Minimum wage increase: The National Minimum Wage is increasing by 4.75%, bumping it up to $26.44 per hour (or just under $1,005 a week). It starts from the first full pay period after on or after 1 July, and will benefit almost 2.8 million workers.
Centrelink benefits are on the rise in the latest round of indexation. Key payments include Family Tax Benefit A – with an increase of up to $277.40 a year per child (depending on their age), Family Tax Benefit B of up to $182.50 per child per year.
The asset and income tests for a range of payments that you need to be under in order to qualify for your particular payment are also on the rise, including for:
- Age pensioners
- Disability Support Pension
- Parenting payment
- Youth Allowance
- Job Seeker
Extension to paid parental leave: Parental Leave Pay will increase by 10 days to a total of 130 days (26 weeks) with more flexible leave options. The payment will also increase by $56.80 to a total of $1,004.90 per 5 day week, in line with the minimum wage.
Changes to super payments: Payday Super starts from 1 July, meaning employers will need to pay super contributions at the same time as wages, rather than quarterly.
Changes to super thresholds: People making personal contributions to their super fund, and claiming a tax deduction for it, will see the cap rise from $30,000 to $32,500 on 1 July. People should know that compulsory employer contributions contribute to this cap. The super transfer balance cap – the limit on the total amount of super that can be transferred into the retirement phase – will also rise from $2m to $2.1m on 1 July.
Electricity prices to drop: Default electricity prices for households in NSW and SE Qld will drop on 1 July by up to 7.2%, while households in Victoria on default electricity plans will see their prices drop by up to 8%. Households in SA will not be so lucky, with prices set to increase by up to 1.4%.
Childcare subsidy income thresholds increase: The income threshold for the maximum 90% childcare subsidy will increase from $85,279 to $88,520 from 1 July.
Medicare levy surcharge thresholds increase: Australians who earn over a certain amount and don’t have adequate private hospital cover have to pay the Medicare levy surcharge. This threshold is increasing from 1 July, which means for a single person, they can earn up to $105,000 without having to pay the surcharge.
New rules for mobile coverage maps: Mobile providers will need to publish standardised mobile network coverage maps by 30 June, ranking coverage by good, moderate, basic and no coverage, designed to make it easier for consumers to compare.
Changes to health insurance rebate: The income thresholds used to determine rebate entitlement will increase from 1 July from $101k to $105k for singles and from $202k to $210k for families, meaning some Australians who would have moved into a lower rebate tier will remain eligible for the higher rebate.
Instant asset write-off to be made permanent: Small and medium businesses, with turnover below $10m, will be able to benefit from the soon to be permanent $20,000 instant asset write-off for business purchases made from 1 July.
New anti-scam rules kick in: The Australian Communications and Media Authority (ACMA) is asking businesses to register their branded SMS sender IDs to clearly identify themselves when sending appointment reminders, account alerts, delivery updates, security codes and other messages. Any organisations who fail to register, will display the word ‘unverified’ on SMS sent from 1 July.
And finally, ditch those receipts! From 2026-27, the ATO will let you claim up to $1,000 in work-related expenses without having the receipts – up from the current no-receipt limit of $300.
Be warned, however, this won’t mean an extra grand in your pocket. The $1,000 gets taken off your taxable income, so the savings will depend on how much tax you pay, with the government estimating the average saving to be $205. If you’ve spent more than $1,000, don’t do away with your receipts. There are plenty of apps that can do it for you, to save tax time headaches.
The not-so-nice ones
Tapering of the fuel excise subsidy: From 1 July, the fuel subsidy will drop down to 16 cents per litre until 2 August. Then it goes for good.
NBN price hikes: Wholesale NBN prices are on the rise, which in term will trigger an increase to a bunch of NBN plans from Telstra, Optus, Aussie Broadband and others. The rises are modest – most are in the vicinity of about $2-$6, and often only on the provider’s lower cost plans, but it’s yet another rising expense in a sea of increased bills. Telstra is hiking on 1 July, Optus is waiting til 6 July. Aussie Broadband, Belong, iiNet, Dodo, Superloop and many more are on the rise as well.
Postage prices to rise: Australia Post is expected to increase prices from 1 July for domestic and international parcels, mail services, and passport and ID photos.
New tax on large super balances: From 1 July, Australians with more than $3 million in super will pay an additional 15% tax on earnings attributable to the portion of their balance above the threshold, known as Division 296. So the profit you earn from any money over that $3m threshold will get taxed at 30% instead of the usual 15%. Any money you make from balances over $10m will attract a 40% tax rate.
Toll increases: Most toll prices are going up in Sydney, Melbourne and Brisbane. However, NSW motorists will get a boost from 6 July, with the state government lowering the weekly toll cap from $60 to $50, which means if you spend more than $50 on tolls in any given week you can get the rest back as a rebate, up to $340. And also abolishing toll notice administration fees, which are fees charged when you use a toll road without a valid electronic tag, pass, or active account and reducing rego costs for the year.
Costs to set up a new business to rise: From 1 July, ASIC will increase the cost to register or renew a business name from $45 to $47 for a one year period. Company fees will also rise from 1 July, with the cost to register a company increasing from $611 to $636.
State-based changes
New South Wales – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
Most households | Electricity price drops: residential customers in NSW on standing offer plans will experience electricity price drops of up to 7.2%. |
Select businesses – supermarkets and hospitality | Food waste recycling: Select businesses will be required to adhere to Food Organics and Garden Waste (FOGO) recycling from 1 July, households have until July 2030. |
Motorists | Rego and toll prices: NSW motorists will see the weekly toll cap cut from $60 to $50. However, most toll road prices are on the rise. Later in the year, a $100 registration discount will also apply for the 2026-27 financial year. |
People using public transport | Opal charges not rising: Opal fares will not rise in 2026. |
Learner riders (motorcyclists) | New safety rules: Learner riders must wear approved hi-vis jackets while riding, while protective gloves will be mandated for learner and provisional riders from 1 July. |
Source: Canstar.
Victoria – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
Most households | Electricity price drops: residential customers in Victoria on standing offer plans will experience electricity price drops of up to 8%. |
Households that have been on the same electricity plan for more than four years | New energy rules: if you’ve been on the same energy plan for more than four years, your retailer will be required to check you’re paying a reasonable price, and if not, switch you to a cheaper plan or lower tariff. |
Most renters | Portable rental bonds: renters in Victoria will be able to move their existing bond to a new property from 1 July. |
Source: Canstar.
Queensland – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
Most households in south east Qld | Electricity price drops: residential customers in south-east Qld on standing offer plans will experience electricity price drops of up to 7.2%. |
Families with children in childcare | New child safety rules: from 1 July, the next phase of child safety rules will kick in, with childcare centres required to investigate and share concerns about workers’ behaviour towards children with other childcare organisations. |
Source: Canstar.
South Australia – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
Most households | Electricity price hikes: residential customers in SA on standing offer plans will experience electricity price hikes of up to 1.4%. |
Australians aged 60+ | Seniors card expansion: All residents of SA aged 60 or over will be eligible for a seniors card from 1 July, previously only those working less than 20 hours per week. |
Source: Canstar.
Western Australia – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
Most households | Electricity price hikes: customers for both Synergy and Horizon power will see an increase to their electricity costs. |
Drivers | Fuel support payment: a one-off $100 payment to assist WA drivers with fuel costs and other financial pressures. |
Source: Canstar.
Tasmania – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
First home buyers | First home grant reduction: the grant will drop from $30k to $20k on 1 July for first home owners buying or constructing a new build in Tasmania. |
First home buyers | Stamp duty relief to end: the current 100% duty exemption for first home buyers purchasing established homes will come to an end from 1 July. |
Most households | Free public transport: the temporary free public transport initiative in Tasmania will be extended for another 12 months until July 2027. |
Source: Canstar.
ACT – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
First home buyers | Stamp duty abolished: first home buyers in ACT will no longer have to fork out stamp duty when buying property from 1 July. Other stamp duty concessions will also be expanded in ACT. |
Households making energy-efficient upgrades | Sustainable Household Scheme being expanded: low-interest loan caps will rise from $15k to $20k, electric vehicle thresholds will be set to $60k from 1 July, and electric cargo bikes will be added to the scheme later in 2026. |
Source: Canstar.
Northern Territory – 1 July changes | |
|---|---|
Who’s it impacting | What’s changing? |
First home buyers | 5% deposit scheme caps: under the Home Guarantee scheme, the maximum property price cap will rise from $600k to $750k in Darwin from 1 July ($600k for the rest of NT). |
People paying fines or fees | Fines and fees to rise: many Territory fines, penalties and government fees linked to the Revenue Unit will rise by 2.76% from 1 July. |
Source: Canstar.
