2025–26 Financial Year Changes: What Australian Businesses Need to Know

As the new financial year gets underway, businesses across Australia need to get up to speed with several important updates. From superannuation and minimum wage increases to new entitlements and extended tax relief, the financial year 2025–2026 brings new compliance obligations and business opportunities.

To help you stay ahead, we’ve summarised the most important updates affecting Australian businesses this financial year. Discover how QuickBooks can support you in staying compliant and prepared.

Superannuation guarantee increase

In the new financial year, the superannuation guarantee (SG) rate has increased from 11.5% to 12%, effective from 1 July 2025. This is the final legislated increase in the SG rate under current laws.

For employers, this means adjusting your payroll systems to ensure you’re paying the correct rate. If you use accounting or payroll software, check that your system has updated the SG rate for the financial year 2025-2026.

What this means for your business:

• Update your payroll systems to reflect the new 12% rate
• Review your budget to account for increased super costs
• Ensure your accounting software is configured correctly
• Communicate the changes to your payroll team

For more information on managing these changes, check out the ATO's announcement about the final SG rate increase and our comprehensive guide on superannuation for employers.

Minimum wage increases

This next financial year (FY) brings good news for workers, and additional considerations for employers. From 1 July 2025, the national minimum wage increases by 3.5%. This decision, handed down by the Fair Work Commission, applies to both the National Minimum Wage and award minimum wages from FY 2025-2026 onwards.

What this means for your business:

• You’ll need to review employee pay rates, including casual loading and penalty rates, to ensure they meet the new legal minimums.
• Businesses relying on awards must check if other entitlements (like allowances) have also changed.
• Failure to comply can result in backpay obligations, reputational damage, and potential Fair Work investigations.

Consider this a good time to audit your payroll processes and ensure everything is up to date and accurate—particularly if you’re managing employees manually or using spreadsheets.

Stay informed about the specific rates that apply to your industry by visiting Fair Work's annual wage review page and our detailed national minimum wage guide.

$20,000 instant asset write-off extension

The Government has extended the $20,000 instant asset write-off for eligible small businesses until 30 June 2026. This allows businesses with an annual turnover of less than $10 million to claim an immediate deduction on assets that cost less than $20,000.

What this means for your business:

• In the financial year 2025-2026, you can immediately deduct the business portion of eligible assets in the year they’re first used or installed.
• It’s a great opportunity to invest in equipment, technology, or tools that support growth and productivity.
• Make sure your asset purchases are below the $20,000 threshold, and that your business qualifies.

This initiative is designed to boost small business investment—but it’s important to keep accurate records and check with your accountant or bookkeeper before claiming.

Learn more about this update from the Australian Labor Party.

Right to Disconnect for small businesses

The Right to Disconnect is now law. From 26 August 2025, employees at small businesses will have the legal right to refuse unreasonable work contact outside of work hours. This follows a 12-month transition period that began in August 2024.

What this means for your business:

• You’ll need to set clear expectations around communication after hours.
• It’s a good idea to develop a Right to Disconnect policy that outlines what constitutes reasonable contact.
• Managers and business owners should be trained on how and when to communicate with staff.

This change is part of a broader move toward protecting employee wellbeing and work-life balance. While it may require a culture shift, it can also contribute to a more sustainable and motivated workforce.

Paid parental leave changes

From the start of the 2025 financial year, the maximum duration of Paid Parental Leave (PPL) increases to 22 weeks, with a further increase to 24 weeks coming in July 2026.

What this means for your business:

• You’ll need to update leave policies, employee handbooks and payroll systems to reflect the changes.
• Planning ahead will be important to manage staffing gaps during extended leave.
• Make sure managers understand the entitlements and how they interact with company policies.

These changes give new parents more time with their child, which can improve employee satisfaction and retention, especially when businesses support the transition well.

Employee Choice Pathway now applies to small businesses

The Closing Loopholes reforms have introduced a new Employee Choice Pathway, allowing casual workers to initiate a request to convert to permanent employment. From 26 August 2025 in this new financial year, this rule applies to employers with fewer than 15 employees.

The goal is to give long-term casuals more security while still allowing flexibility. Being proactive and transparent in how you handle requests will reduce confusion and potential disputes.

What this means for your business:

• You need to understand the new process and eligibility criteria for casual conversion.
• Employers must respond to conversion requests in writing within 21 days and provide a valid reason if declining.
• It’s time to review your casual contracts, rosters, and workforce structure.

Let QuickBooks help you

Managing these next financial year changes doesn't have to be complicated. QuickBooks helps small and medium businesses stay compliant with tools that automatically update with the latest rates and requirements.

Our accounting software handles the complexity for you, while QuickBooks Online Advanced provides advanced features for larger businesses. Ready to simplify your accounting? Sign up today and focus on what matters most—growing your business.