Sweeping reforms including wage rises and parental leave expansions begin on July 1.
The 2025-26 financial year brings significant changes for millions of Australians, with updates spanning employment conditions, social security payments and road safety measures from July 1.
These reforms represent some of the most comprehensive policy shifts implemented in recent years, affecting everything from minimum wage standards to disability support services.
Key changes taking effect 1 July 2025
- Minimum wage increases by 3.5% to $948 per week or $24.95 per hour
- Superannuation guarantee rises from 11.5% to 12%
- Paid parental leave extends from 110 to 120 paydays (24 weeks)
- Student loan repayment threshold increases to $67,000
- Centrelink payments rise by 2.4% through regular indexation
- AI-powered mobile phone detection cameras deployed nationwide
- Cheaper home batteries program offers 30% discount on installation
- Paid practical placements begin for teaching, nursing, midwifery and social work students
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Minimum wage
From July 1, the minimum wage will increase by 3.5 per cent, to $948 per week or $24.95 per hour, based on a 38-hour work week.
This adjustment will impact approximately 2.6 million workers, providing additional income support during ongoing cost-of-living pressures.
Superannuation
The minimum amount of superannuation employers must contribute is also set to rise from 11.5% to 12%.
The superannuation increase represents the final step in a five-year progression, meaning a 30-year-old earning $100,000 annually will accumulate an extra $125,000 by retirement.
Paid parental leave
Families will see expanded support through extended parental leave from July 1, with parents now able to claim benefits up to three months before their child enters their care.
The scheme will continue expanding until reaching 26 weeks by 2026.
The number of paid parental leave (PPL) paydays is lifting from 110 to 120, or 24 weeks.
NDIS
The National Disability Insurance Scheme introduces revised pricing structures, with some service rates decreasing while others standardise nationally.
Physiotherapy sessions reduce by $10 to $183.99 per hour, while psychology sessions standardise at $223.99 across all states and territories.
However, disability support workers receive a 3.95 per cent pay increase.
Aged pension
Aged pension recipients benefit from adjusted income and asset thresholds, with couples receiving $34.50 fortnightly increases and singles gaining $22.50.
The changes ensure thousands more Australians become eligible for pension benefits.
Road safety
Road safety measures intensify with AI-powered surveillance cameras detecting mobile phone use by drivers.
At a state level, 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.
Student placement support
Students pursuing teaching, nursing, midwifery and social work gain financial support through paid practical placements worth $319.50 weekly.
Home batteries
The cheaper home batteries program launches from July 1, offering 30 per cent discounts on battery system purchases and installation for households seeking renewable energy storage solutions.
