A raft of changes will take effect from Wednesday, 1 July, as the new financial year brings updates to policies, prices and thresholds across Australia.
Canstar has compiled a list of major changes below and how they might impact your budget.
The good stuff
Tax cuts: 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 an additional saving of up to $268 per year.
Minimum wage increase: Modern award wage rates are increasing by 4.75%, bumping it up to $26.44 per hour (or $1,004.90 a week), along with the national minimum wage. It starts from the first full pay period 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) and Family Tax Benefit B of up to $182.50 per child per year.
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 number of days reserved for a partner will increase from 15 to 20 days from 1 July. The payment will also increase $1,004.90 per 5 day week, in line with the new 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 pre-tax contributions to their super fund will see the annual cap rise from $30,000 to $32,500 on 1 July. The non-concessional cap will also rise from $120,000 to $130,000. People should know that compulsory employer contributions contribute to this cap. The super transfer balance cap – the annual 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, Victoria and SE Qld will drop on 1 July 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.
Supermarket price gouging rules kick in: From 1 July, new rules designed to stop the major supermarkets from charging prices deemed excessive relative to their costs come into play.
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 the private health insurance rebate will increase.
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: Businesses must register their branded SMS sender IDs when sending text messages. Starting 1 July, messages from unregistered organisations will display as ‘unverified’.
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.
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 will trigger an increase to a range of NBN plans from Telstra, Optus, Aussie Broadband and others. The rises are modest – most are about $2-$10 a month, and often only on select plans.
Postage prices to rise: Australia Post is increasing prices from 1 July for domestic and international parcels, mail services, and passport and ID photos. The cost of a 5kg large pre-paid satchel is rising by 95 cents.
New tax on large super balances: From 1 July, Australians with more than $3 million in super will pay an additional tax. This means the profit a person earns from any money over that $3m threshold in their super 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: A number of toll road prices are going up in Sydney, Melbourne and Brisbane in line with inflation. However, in NSW, the state government is lowering the weekly toll cap from $60 to $50, which means if you spend more than this on tolls in any given week you can get the rest back as a rebate, up to $340. The state government is also abolishing toll notice administration fees, which are fees charged when you use a toll road without a valid electronic tag 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? |
Households | Electricity price drops: Residential customers in NSW on standing offer plans will experience electricity price drops of up to 7.2%. However customers should check the fine print. Low electricity users might find their bill goes up due to rises in daily supply charges. |
Select businesses | 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 freeze over the next 12 months. |
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? |
Households | Electricity price drops: Residential customers in Victoria on standing offer plans will experience electricity price drops of up to 8%. |
Households on the same electricity plan for more than 4 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. |
Motorists | Toll prices rising: CityLink, West Gate Tunnel and Eastlink toll road prices are on the rise in line with inflation. |
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? |
Households | Electricity price drops: Residential customers in south-east Qld on standing offer plans will experience electricity price drops of up to 7.2%. |
Motorists | Linkt toll road prices are rising in line with inflation: This includes Clem7, Go Between Bridge, Legacy Way and Toowoomba Bypass. |
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%. |
South 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. |
Motorists | 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. |
Public transport users | 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 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.
Christmas come early for households
Canstar's Data Insights Director, Sally Tindall, says, “Santa has arrived early for many households this year, delivering a sack full of financial wins, as a range of changes kick in from next Wednesday.”
“Millions of Australian workers are set to get a tax cut from 1 July, with savings of up to $268 over the next financial year. Then, from 1 July next year, taxpayers will receive a second tax cut worth up to another $268, taking the total annual saving to as much as $536.
“The minimum wage increase will put extra money into low-paid workers’ pockets each week to help them afford essentials such as food and electricity. However, it will be an extra cost many businesses have to bear.
“Centrelink benefits are on the rise in the latest round of indexation, while the asset and income tests for a range of payments are also increasing.
“These increases won’t completely erase the pressure many households are feeling from higher living costs, but they will provide a welcome boost for families, pensioners and other Australians relying on government support payments.
“The introduction of Payday Super is an important operational change and has the potential to leave millions of Australians better off in retirement.
“By receiving super contributions at the same time as their wages, workers should benefit from their money being invested sooner and will also have greater visibility over whether their employer is meeting their super obligations.
“Payday Super is great news for employees, but it will require some businesses to rethink their cash flow management as super payments move from a quarterly to a payday obligation.
“Not all the changes coming into play next Wednesday will be on the nice list.
“The gradual removal of the fuel excise subsidy is set to push petrol prices higher from next week, then will be removed altogether from August.
“NBN price hikes are coming down the line. NBN Co has increased its wholesale prices and the retailers are passing a lot of them on, at between $2 and $10 a month. However, get switching and you could instead save $291 over the next year on a typical NBN plan.
“A raft of toll increases are set to hit motorists from next week. While the hikes on individual roads might only amount to a handful of cents per trip, these charges are indexed quarterly and can add up for commuters who rely on toll roads day in, day out.
“There is some good news for NSW drivers, however. The state’s toll cap is being reduced from $60 to $50 a week, meaning motorists who spend more than $50 on eligible tolls can claim the excess back.
“The start of a new financial year is one of the best reminders to give your finances a health check. Just because a higher bill lands in your inbox doesn’t mean you have to accept it.
“Loyalty rarely pays when it comes to household bills.”
