From pay rise to parental leave – essential updates from 1 July 2025
Understanding the changes coming on 1 July 2025 can feel overwhelming, especially when you’re balancing work, family and everything in between. As a women-led firm run by two friends who have navigated these exact challenges ourselves, Steps Financial is here to help you turn these shifts into stepping-stones for greater confidence and control over your money. Below is what matters most and how you can get ready.
Adjusted Tax and Loan Repayment Thresholds
From 1 July, the point at which you start paying the Medicare Levy Surcharge will rise to $101,000 for singles (up from $97,000). If you’ve been debating private health cover, this extra room in your budget might give you some breathing space before the surcharge applies. At the same time, the minimum income for HELP-loan repayments moves up to $67,000 (from $54,435) and you’ll only repay on the amount you earn above this new level rather than your full income. Now is an ideal time to estimate your taxable earnings for the year ahead, revisit your volunteer repayment plan if you want to reduce debt faster, or explore health-cover options without the rush.
Higher Wages and Boosted Family Payments
The Fair Work Commission’s mid-year review lifts the national minimum wage by 3.5% to $24.95 per hour (or $948 per week for a 38-hour standard week). This change will appear in pay packets from the first full pay period after 1 July and will benefit more than 2.6 million workers. On the government support side, Centrelink allowances and Family Tax Benefit rates increase by 2.4%. Families will see fortnightly payments for children under 13 climb to $227.36 (and $295.82 for children 13 or older), while the top rate of Family Tax Benefit Part B becomes $193.34 (or $134.96 if your youngest child is five or older). For women managing busy lives, these extra dollars can help with savings goals, childcare costs or professional development.
Superannuation Uplift
The compulsory super contribution that your employer must pay will move from 11.5% to 12% on any wages paid from 1 July. Although it may seem small, that half-percent boost compounds over the years into a significant difference in your retirement balance. The government is also extending super payments to its paid-parental-leave recipients, so eligible parents will see additional contributions go into their accounts for the first time. If you handle payroll, update your settings right away; if you’re employed, take a moment to review how this change will affect your long-term savings plan.
Expanded Parental Leave Support
In the coming financial year, the base paid-parental-leave entitlement grows from 20 to 22 weeks, with a roadmap to reach 26 weeks by July 2026. Once fully implemented, eligible families will receive around $24,000 in government-funded leave. The scheme’s flexibility allows parents to share leave, take it at the same time or stagger it across two years, which can help manage both care responsibilities and household cash flow more smoothly.
Home Energy Rebates and Rising Utility Costs
A new rebate of 30% on home-battery installations for solar systems kicks in on 1 July, potentially saving participating households between $1,100 and $2,300 each year. At the same time, default electricity prices in NSW, Victoria, south-east Queensland, South Australia and the ACT are expected to climb by up to 9%, and Australia Post will raise its postage fees. Reviewing your household budget now and assessing whether solar batteries make sense for your lifestyle can help you lock in long-term savings and sustainability benefits.
How a Financial Planner Can Help
We’ve outlined these mid-year shifts so you can see exactly what’s changing and why it matters for your household budget, retirement savings, and family planning. At Steps Financial, our goal is to share the expertise we’ve built, so you feel empowered to make informed decisions, whether that’s understanding your entitlements, the impacts on your super, or mapping out a parental leave plan. We hope you find this helpful. If you need assistance planning for your financial future, please don't hesitate to get in touch.