1 July changes: minimum wage, Centrelink payments, parental leave, road fines and everything else coming for the 2025-26 financial year
A wage increase for low-paid workers, changes to superannuation and significant reforms to the pension are part of sweeping changes being made on 1 July.
The end of the financial year is typically when state and federal governments change a range of legislation, implementing new policies. This year there is a lot happening so let's take a look at the big-ticket items.
Good news for those on the bottom income line, the minimum wage will increase by 3.5%, to $948 per week or $24.95 per hour, based on a 38-hour work week. The changes are expected to impact 2.6 million and will apply from the first full pay after July 1.
The minimum amount of superannuation employers must contribute is also set to rise from 11.5% to 12%.
This will be the final increase in a five-year series of rises to the amount employers have to pay and will mean a 30-year-old earning $100,000 will have an additional $125,000 when they retire.
In addition to cutting 20% off student loan debts for 3 million Australians, the government will also increase the amount that people can earn before they are required to start paying back their loans to $67,000, subject to the passage of legislation.
The national disability insurance scheme will introduce a number of changes from 1 July as part of its annual pricing review. The changes will mean that the maximum rates providers can charge some NDIS participants will be lowered after the review found some limits were 'inflated' or 'out of step with broader market rates'.
For example, physiotherapy sessions have been reduced by $10 to $183.99 per hour. Maximum rates will also be made nationally consistent meaning some providers in jurisdictions will be increased – prices for psychology sessions have been standardised at $223.99 across all states and territories.
Other changes will include removing an establishment fee providers once charged participants for setting up their services.
Sector advocacy groups have criticised the changes, warning they will result in fewer services being available for participants in regional and rural areas.
In brighter news, disability support workers will get a 3.95% pay boost from July.
The pension rate is not going up but increased income and asset thresholds mean thousands more will be entitled to benefits and bigger payments.
From 1 July the thresholds will be adjusted to better keep up with inflation, with every couple who are asset-tested getting a $34.50 fortnight increase, with singles getting $22.50.
The asset cut-off point when the pension starts to be reduced has also been decreased from $481,500 for couples and $321,500 for singles to $470,000 per couple and $314,000 for singles.
Around 2.4 million Centrelink recipients will also see a small increase to their payments, as the regular indexation is applied to their income. This means that payments and thresholds will increase by 2.4%.
While any increase to the bottom line will be welcomed by those on the payments, advocates routinely say the high cost of living, including soaring rent, far outpaces the extra money.
There is good news for parents and carers born in the new financial year with the number of paid parental leave (PPL) paydays lifting from 110 to 120, or 24 weeks.
Parents will be able to claim the leave up to three months before their child 'enters their care'. This is a series of increases to the scheme which will see it progressively expand until it hits 26 weeks by 2026.
AI-powered surveillance cameras, that will be able to detect when drivers are holding or using their mobile phones, will now be used across the country.
There are also state-based changes. In NSW, for example, there will be harsher penalties if someone is found not wearing a seatbelt, as fines rise in line with the CPI increase of 3.2%. The state will start trialling average speed cameras for cars and motorcycles in two locations.
In Queensland, speed limits will be reduced in selected areas and traffic fines will increase by 3.5%.
Drivers in Victoria will now have to slow to 40kmh when passing roadside assistance vehicles, tow trucks or emergency response vehicles that are flashing their lights. In South Australia, this will be lowered to 25kmh on some roads.
Drivers in Western Australia will now face fines up to $700 for mobile phone use and over $1,600 for excessive speeding.
Households that are looking to install battery systems will be in a better position as the cheaper home batteries program offering a 30% discount on the purchase and installation kicks in.
Paid practical placements will start for some tertiary students studying teaching, nursing, midwifery, and social work. Eligible students will be able to access $319.50 per week while they're undertaking a placement.
Affordable access to life-changing treatment for cystic fibrosis will be expanded to more Australians with a change to the Pharmaceutical Benefits Scheme.
People living with rarer types of cystic fibrosis will pay a fraction of the price to access life-changing treatment under an expansion of the scheme.
People will now pay a maximum of $31.60 per script, or $7.70 if they hold a concession card.
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