What July 1 means for your wallet, super and family

From tax cuts and super reforms to changes in parental leave, July 1 marks the start of a new financial year, and with it comes a raft of changes that could affect millions of Australians

While some of the reforms are aimed at workers and young families, others could have a direct impact on retirees, part-time workers and anyone still building their superannuation nest egg.

Here’s what you need to know.

A tax cut is coming

Every Australian taxpayer will receive a small tax cut from July 1.

The tax rate applying to income between $18,201 and $45,000 will fall from 16 per cent to 15 per cent. The Federal Government says that will leave taxpayers up to $268 better off over the coming year, with a further reduction planned in 2027.

For someone working part-time in retirement, it’s not life-changing money, but every little bit helps as living costs remain elevated.

Super will be paid with every pay packet

One of the biggest changes arriving on July 1 is known as “payday super”.

Instead of employers paying superannuation quarterly, they will now be required to pay it at the same time wages are paid. The change is designed to reduce unpaid super and ensure retirement savings reach workers’ accounts sooner.

For older Australians still working, the benefit is simple: your money starts earning investment returns sooner and is easier to track.

Parents will receive more paid leave

Families welcoming a child from July 1 will be entitled to 130 days of government-funded Parental Leave Pay, up from 120 days.

The increase lifts the scheme to 26 weeks and forms part of the government’s staged expansion of paid parental leave.

For many Starts at 60 readers, that may not be directly relevant — but it could affect children and grandchildren, particularly where grandparents step in to help with childcare.

Super payments on parental leave begin

Another significant change arrives for new parents.

From July, the Australian Taxation Office will begin paying superannuation contributions to government-funded parental leave payments for eligible parents whose children were born or adopted from July 1, 2025.

Women’s groups have long argued that time out of the workforce to raise children contributes to lower retirement balances. This reform aims to help narrow that gap.

Super contribution caps are increasing

Australians still working and looking to boost retirement savings may benefit from higher super contribution limits.

The concessional contributions cap is expected to rise from $30,000 to $32,500, while the non-concessional cap is expected to increase from $120,000 to $130,000.

That could create extra opportunities for older workers and pre-retirees to add to their super in a tax-effective way.

A super tax proposal remains in the spotlight

The Federal Government’s proposed Division 296 tax, which would apply an additional tax to earnings on superannuation balances above $3 million, continues to generate debate.

Supporters argue it targets only the wealthiest Australians, while critics have raised concerns about how unrealised gains would be treated and whether the $3 million threshold should be indexed over time.

At the time of writing, the measure remains a topic of political discussion and is unlikely to affect the vast majority of Australians. Those with large super balances may wish to seek professional financial advice and keep an eye on future developments.

Minimum wage workers get a pay rise

About 2.8 million Australians will benefit from a rise in minimum and award wages from July.

Many older Australians continue to work casually or part-time, particularly in retail, hospitality and care sectors, where award wages are common.

Small business owners get certainty

The Federal Government has made the $20,000 instant asset write-off permanent for eligible small businesses.

For readers running small businesses in retirement, it could make purchasing equipment or upgrading assets more attractive.

The little changes add up

Individually, many of the July 1 reforms appear modest. A small tax cut, a little more parental leave, and Super paid more regularly. But taken together, they represent one of the busiest starts to a financial year in recent memory, with changes touching tax, retirement savings, wages and family finances.