Millions of Australians face these money changes from July 1

Millions of Australians will see changes to their pay, tax, super and household bills from July 1 as the new financial year gets underway.

New tax cuts, payday super, minimum wage increases, free electricity offers and tougher anti-scam protections are among the measures set to take effect.

Here's what you need to know.

Payday super starts from July 1

More than three years on from the federal government's original announcement, payday super will finally come into effect on July 1.

Under the new rules, employers will need to pay employees their superannuation guarantee at the same time they as they are paid - whether that's weekly, fortnightly or monthly.

As things currently stand, employers can elect to make payments on a quarterly basis.

The reform is designed to help crack down on instances of unpaid super, but it also has the potential to boost retirement balances for members who will receive more regular contributions.

Higher tax begins for super balances above $3 million

Australians with relatively large superannuation balances will pay a higher rate of tax on their earnings from next month.

The new Division 296 rules, which passed parliament in March, will see earnings on total super balances exceeding $3 million taxed at an effective rate of 30% (up from 15%) from July 1.

Balances over $10 million will also face a higher tax rate (40%, up from 15%) on the proportion of earnings that exceed that mark.

New SMS scam protections start on July 1

Ever received a fishy text claiming to be from AusPost or myGov? Well, Australians should find it easier to spot SMS impersonation scams when new rules kick in on July 1.

Going forward, texts sent using an unregistered branded sender ID (like the name of a business or organisation), will be labelled as 'unverified' and grouped in a single thread.

Messages from legitimate, registered senders will appear normally in their own threads though.

Nearly $18 million was lost to SMS scams last year, the Australian Media and Communications Authority says, with scammers commonly impersonating major brands to trick consumers.

New $1000 instant tax deduction starts

Proposed earlier this year and outlined in more detail in the recent federal budget, the government's $1000 instant tax deduction will commence on July 1.

The measure will allow taxpayers to claim an tax deduction worth up to $1000 without providing the usual receipts.

Claims above that amount will still need proof though.

While the new measure will apply to deductions in the 2026-27 financial year, taxpayers won't be able to make use of it until they start putting together their tax returns from mid-2027.

New income tax cuts

Taxpayers are set to keep more of their earnings from next month when the first part of a two-stage income tax cut comes in to effect.

From July 1, the 16% tax rate (which applies to income between $18,201 and $45,000) will fall to 15%.

The rate will then drop again to 14% in July 2027.

The government suggests that the cuts will save people up to $268 in the first year, then up to $536 every year from July 2027 onwards.

Electricity price changes 

Electricity prices are set to drop for the majority of households on the Default Market Offer (DMO) in New South Wales, South East Queensland and South Australia.

From July 1, households on flat-rate DMO offers will see prices fall by up to 5% in New South Wales and 7.2% in South East Queensland. They will increase by 1.4% in South Australia.

Customers on time of use plans will see prices drop by up to 7.7% in New South Wales, 10.7% in South East Queensland and 1.1% in South Australia.

Less than one in ten households are on DMO offers though, so customers on other plans may need to watch out for price increases from their energy retailers.

Free electricity offer launches for eligible households

From the start of next month, eligible households in New South Wales, South East Queensland and South Australia (the areas covered by the DMO) will be able to tap into free electricity through the new Solar Sharer Offer.

The offer will provide three hours of free electricity in the middle of the day when solar generation is most abundant.

In New South Wales and Queensland, the window will be between 11am and 2pm, while in South Australia it will be from 12pm to 3pm.

The offer may make sense for households who are able to shift their energy usage to coincide with the free electricity window, but prices outside of that period are expected to be more expensive than with other plans.

Minimum wage rises to $26.44 an hour

Millions of workers will take home more in their pay packets next month following a recent decision by the Fair Work Commission to raise minimum wage rates for modern award earners by 4.75%.

Meanwhile, roughly 100,000 of the lowest-paid workers in Australia will see their wages increased by 5.97% in the coming weeks.

From July 1, the national minimum wage will rise from $24.95 per hour to $26.44 per hour.

For someone working a 38-hour week, that means their pay will increase from $948 to $1004.90.

Paid parental leave expands to 26 weeks

Families of children who are born or adopted from July 1 will be able to access 130 days (26 weeks) of government-funded pay under the Paid Parental Leave scheme.

That's up from 100 days in the 2023-24 financial year and 120 days in the current financial year.

The amount of leave reserved specifically for partners will also increase from 15 days to 20 days from July.

This leave is meant to encourage both partners to take time off and expires if it's not used.

Since July last year, recipients have also received superannuation on their paid parental leave at the super guarantee rate of 12%.

New supermarket price-gouging laws begin

New laws aimed at banning price gouging on groceries by supermarkets with annual revenue greater than $30 billion (i.e. Coles and Woolworths) will come into effect from July 1.

The government says that the laws, which were passed in December, will prohibit charging prices that are, "...excessive when compared to the cost of the supply plus a reasonable margin."

Exactly what that will mean in practice remains to be seen, with the Australian Competition and Consumer Commission set to be responsible for enforcing the policy.

Get stories like this in our newsletters.