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.
Microkeeper will automatically adjust the SG rate to 12% for new payruns in the 2025-26 financial year.

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

Effective from 1 July 2024, the revised Stage 3 tax cuts are now reflected in 2024–25 PAYG summaries and individual tax returns.

‍Key Changes:

• 16% tax rate: Applies to incomes between $18,201 and $45,000 (reduced from 19%).
• 30% tax rate: Applies to incomes between $45,001 and $135,000 (reduced from 32.5%).
• 37% tax rate: Applies to incomes between $135,001 and $190,000 (threshold increased from $120,001).
• 45% tax rate: Applies to incomes above $190,000 (threshold increased from $180,001).

Ensure your payroll software reflects these updated tax rates and thresholds. Microkeeper has automatically applied the new tax tables for any pay runs in the 2025–26 financial year, requiring no manual updates.

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.

How do I submit a Final STP submission for End Of Financial Year EOFY in Microkeeper?

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.

Cutoff times for EOFY super contributions in Microkeeper.

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. Microkeeper will automatically apply the new tax rate and super rate changes for the 2025-2026 financial year.

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 opportunity 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.}