Ten Big Changes Coming To Australia From July 1, 2025

Prime Minister Anthony Albanese's Labor government had championed a national minimum wage hike at the federal elections. Photo: Facebook

Australians can expect a wave of significant changes affecting everything from pay packets to road rules, immigration, and energy bills as the new financial year begins on July 1, 2025. 

Whether you’re a worker, parent, business owner, or recent migrant, these updates will likely touch your daily life. 

Increased minimum wages, boosted superannuation, expanded parental leave, and new road rules are just the beginning. With energy rebates and revamped immigration pathways also on the agenda, Australians are set for a year of transformation. 

A national minimum wage hike was a flagship policy that Prime Minister Anthony Albanese's Labor government championed during the federal elections.

"We pushed for millions of Australians to get a pay rise. Today, it's kicking in," Prime Minister Albanese posted on social media. According to the Labor government, the minimum wage hike will benefit over three million workers. "Everyone deserves a fair day's pay for a fair day's work. That's the Australian way," Albanese added.

Here’s a snapshot of the top changes you need to know about as the new financial year begins.

1. Minimum Wage Increase

• The national minimum wage rises by 3.5% to $24.95 per hour (or $948 per week for full-time employees), with the casual rate now at $31.19 per hour. This applies from the first full pay period after July 1.

  
  

2. Superannuation Guarantee Boost

• Employers must now contribute 12% (up from 11.5%) of employees’ ordinary time earnings to superannuation. This is the final step in a series of planned increases.

  
  

3. Paid Parental Leave Improvements

• Paid Parental Leave extends to 24 weeks (up from 22).

  
  

• For the first time, the federal government will pay superannuation on government-funded parental leave payments, boosting long-term retirement savings for new parents.

  
  

4. Centrelink and Pension Changes

• Centrelink recipients will see an increase in their payments from July 1 as part of regular indexation that will see payments rise between $4.48 - $48.

  
  

• Increases to income and asset thresholds mean more people may qualify for the Age Pension, Disability Support Pension, and Carer Payment.

  
  

5. Medicare and Health Updates

• The Medicare Levy Surcharge thresholds have increased, now applying to singles earning over $101,000 and families earning over $202,000 without private hospital cover.

  
  

• The Medicare Benefits Schedule (MBS) introduces major changes, including a new chronic disease management framework, new menopause and perimenopause health assessments, and annual fee indexation for most MBS items.

  
  

6. Road Rule Overhaul

• Tougher penalties and new AI-powered cameras target mobile phone use and seatbelt offences nationwide, with fines up to $1,209 and 5 demerit points for phone use.

  
  

• State-specific changes include reduced speed limits in urban areas, stricter requirements for passing emergency vehicles, and increased fines for speeding and seatbelt violations.

  
  

7. Cost Of Living - Energy Bill Relief, and Battery Discounts

• Every household and around one million small businesses will get an extra $150 electricity rebate in quarterly instalments.

  
  

• The new Cheaper Home Batteries Program offers a 30% upfront discount on eligible battery systems, helping homes and businesses cut power bills by up to 80%.

8. Skilled visa income thresholds

• Skilled visa income thresholds will increase by 4.6% - Core Skills Income Threshold (CSIT) will increase from $73,150 to $76,515, Specialist Skills Income Threshold (SSIT) will increase from $135,000 to $141,210, the Temporary Skilled Migration Income Threshold (TSMIT) will increase from $73,150 to $76,515.

  
  

9. Right To Disconnect

• Eligible Employees will have the right to refuse contact outside their working hours - meaning an employee can refuse to monitor, read or respond to contact from an employer or a third party. The 'Right To Disconnect' policy will become applicable to small business employers from August 26, 2025 (it became applicable to non-small business employers from August 26, 2024).

  
  

10. Country Of Origin Labelling For Seafood

• If you are a business selling dishes that contain seafood, you need to be aware of this new rule that makes Country of origin labelling for seafood in hospitality settings mandatory from 1 July 2026. The 12-month transition period started on July 1, 2025.