Happy New (financial) Year! It’s 1 July, which means there are some Government-mandated resolutions to ring in FY27.
Among them are changes to minimum wages, super, the fuel excise discount, tax deductions, and paid parental leave.
Here’s the ultimate guide to what you can expect in the new financial year.
Background
Australia’s financial year runs from 1 July to 30 June, which is when many government policies, tax changes and workplace rules take effect.
The Federal Budget is usually handed down in May, with many of its measures beginning at the start of the new financial year.
While Australia follows a July-to-June cycle, other countries use different systems. The UK tax year runs from 6 April to 5 April, while the U.S. federal government uses a financial year from 1 October to 30 September.
Changes
Employers will be required to pay staff super within seven business days of their regular pay cycle, rather than once per quarter.
Fuel excise relief halved
The cut to the fuel excise announced in March will be halved in July. This means petrol and diesel will be 16 cents off per litre.
Minimum wage
The National Minimum Wage will increase from $24.95 to $26.44 per hour. The lowest award entry-level wage will also rise to $25.74 an hour.
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Paid parental leave
Eligible families can now access 26 weeks (six months) of paid parental leave, up from 24 weeks last financial year.
Registered SMS sender ID
Businesses sending branded text messages must now register their sender ID through their ABN to help prevent scammers impersonating trusted organisations.
Instant tax deduction
Eligible workers can claim a new $1,000 instant tax deduction from 1 July, with claims available when lodging tax returns in the second half of 2027.
Workers
The Australian Council of Trade Unions (ACTU) is urging workers who are due a pay rise to check their first pay slip of the new financial year to ensure they're being paid correctly.
“July is pay rise month for millions of Australian workers,” ACTU Secretary Sally McManus said.
“It’s not just those on award wages, but many collective agreements have pay rises that also kick in on 1 July.”
Issues
As employers adjust wages from 1 July, workers are encouraged to check their pay closely.
If there is an issue, the Fair Work Ombudsman recommends raising it with your employer first. Concerns can also be escalated to the Ombudsman or, if you’re a member, your union.
McManus said while “most employers do the right thing... there are always some who do not and hope their employees don’t notice.”
