Your guide to EOFY 2025: Key updates and actions for Australian businesses

As the 2024-25 financial year draws to a close, it's crucial for Australian businesses to stay informed about the latest changes and ensure compliance. This guide highlights the key updates and actions your need to take before 30 June 2025.

Key changes to note for the 2025-26 financial year

1. Superannuation Guarantee increase

The Superannuation Guarantee (SG) rate will rise from 11.5% to 12%. Ensure payroll systems are updated to reflect this change and that contributions are calculated correctly from 1 July 2025.

2. Minimum wage adjustment

The national minimum wage will increase by 3.5%, bringing it to $948 per week or $24.95 per hour.

Review your employee pay rates to ensure compliance with the new minimum wage standards.

3. Stage 3 tax cuts now in effect

Although introduced on 1 July 2024, the Stage 3 tax cuts will now be reflected in 2024-25 PAYG summaries and tax returns. These changes:

• Remove the 37% tax bracket.
• Reduce the 32.5% rate to 30% for income between $45,001 and $200,000.
• Adjust the thresholds to simplify Australia's income tax system.

Make sure your payroll software reflects these updated tax rates.

4. Superannuation tax on high balances

From 1 July 2025 a new 30% tax rate will apply to earnings from super balances exceeding $3 million (up from 15%). While this won't affect most employees, high-income earners and business owners with large super funds should begin planning accordingly.

Essential EOFY actions

1. Finalise payroll and STP reporting

Complete payroll processing for the 2025-25 financial year and ensure Single Touch Payroll (STP) reports are lodged with the ATO by 14 July 2025. This ensures employees can access income statements via myGov.

2. Reconcile Superannuation contributions

Confirm that all super contributions are paid and reconciled. Any discrepancies should be addressed before year-end to avoid compliance issues.

3. Review and update employee records

Ensure all employee information is current, including TFNs, contact details, and bank information, to supoort smooth reporting and payment processes.

4. Apply payroll system updates

With new tax brackets and the super rate increase, verify that your payroll software is up to date. Non-compliance could result in penalties or misreporting.

Additional EOFY considerations

1. Instant asset write off

The $20,000 instant asset write-off for small businesses applies to eligible assets purchased before 20 June 2025. Talk to your accountant to ensure you're claiming this benefit appropriately.

2. Review contracts and HR policies

Wage increases and SG changes are a good triffer for reviewing employee contracts and internal policies. Ensure your documentation aligns with current legislation.

3. Wage theft legislation

From 1 January 2025, intentional wage underpayment can lead to criminal charges. Make sure your payroll and rostering processes are accurate and compliant to avoid serious penalties.

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EOFY is a time to tidy up, take stock, and prepare for the year ahead. Staying on top of compliance, system updates, and financial opportunities like the asset write-off can position your business for success in FY26.

Always sepak with your accountant or financial advisor if you're unsure, and refer to the Australian Taxation Office (ATO) for the latest guidance and deadlines.

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^{This article is for general information only and does not constitute financial advice. For tailored guidance, please consult a registered tax professional.}