There are several key changes coming into effect from 1 July 2025 that are likely to impact small business owners in Western Australia.
Here is a recap of what you need to know.
New minimum wages
The minimum wage for both the national and state industrial relations systems will increase from the first pay on or after 1 July 2025.
National minimum wage increase
If your business operates under the Fair Work federal industrial relations system (covering businesses such as ‘Pty Ltd’ companies), the new national minimum wage will increase by 3.5 per cent to $948 per week or $24.95 per hour.
The national minimum wage increase covers all employees who are not covered by an industry award or enterprise agreement.
Visit the Fair Work website for more information about the national minimum wage increase.
State minimum wage increase
If your business operates under the WA state industrial relations system (covering sole traders, some micro businesses, unincorporated partnerships and unincorporated trust arrangements), the new minimum wage will increase by 3.75 per cent to $953 per week or $25.08 per hour.
Visit the Wageline website for updated WA award summaries and minimum pay rates for award free employees.
Super guarantee rate increase
The super guarantee rate will increase to 12 per cent on 1 July 2025. This new rate must be applied to all salary and wages paid on or after 1 July 2025, even if the pay period includes days before that date.
Visit the Australian Taxation Office (ATO) website for information on the increase to the super guarantee.
Changes to paid parental leave
The paid parental leave scheme will increase the number of paid parental leave days from 110 to 120 for children born or adopted from 1 July 2025 onwards. Visit the Services Australia website to find more about employer obligations for paid parental leave.
Interest paid to the ATO will no longer be tax deductible
From 1 July 2025, the interest charged by the Australian Taxation Office (ATO) for late payments or underpayments will no longer be tax deductable. Visit the ATO website to find out more about the impact of this change.
Energy bill relief
As part of the 2025-26 Federal Budget, the Australian Government announced that eligible small businesses will receive a $150 credit towards their electricity costs, which will be automatically applied to energy bills from 1 July 2025 in two quarterly instalments of $75.
Other changes to be aware of
In addition to the changes taking place on 1 July 2025, other changes that will impact small business owners in the coming months include:
- Right to disconnect: Small business owners will need to comply with the Australian Government’s right to disconnect laws from 26 August 2025.
- Freeze on alcohol excise: As announced in the Federal Budget, the alcohol excise for draught (kegged) beers will be frozen for two years, starting from August 2025.
- Business name registration fee increases: There will be a small increase to the fees payable for registering a business name or a company.
- State Government reforms: From 1 July 2025, new State Government reforms will come into effect, which will see a number of department name changes and re-alignments. Read the Premier’s media statement to find out more.
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