What July 1, 2025 Means for Your Wallet: Key Tax and Superannuation Changes Explained

From July 1, 2025, millions of Australians will benefit from long-awaited tax relief and superannuation updates designed to boost take-home income and ease cost-of-living pressures. Whether you're a wage earner, investor or thinking about your retirement strategy, it’s worth understanding how these changes could impact your bottom line — especially if you're considering maximising your Self Managed Super Fund (SMSF) contributions or revisiting your financial structure.

1. Stage 3 Tax Cuts Are Here — With a Twist

Originally legislated in 2019, the Stage 3 tax cuts have been tweaked by the Albanese government to provide more equitable benefits across income brackets. As of July 1:

• The 19% tax rate drops to 16.5%This applies to incomes between $18,201 and $45,000, meaning low- to middle-income earners will receive a modest tax cut.

• The 32.5% tax rate reduces to 30%This new flat rate now applies to income between $45,001 and $135,000, extending the tax benefit up the income scale.

• Thresholds shift upwardThe top 45% tax rate will now kick in at $190,000 instead of $180,000.

  
  

✅ Estimated average benefit:According to Treasury modelling, around 13.6 million taxpayers will receive a tax cut. A person earning $100,000 annually could save approximately $2,179 per year in tax.

“This isn’t just about lowering taxes — it’s about returning more income to the people who need it most, while still delivering broad-based relief,” said Treasurer Jim Chalmers.

2. Superannuation Guarantee Rises to 11.5%

If you're an employee, your employer contributions to super will increase again:

• Current rate: 11%

• New rate from July 1: 11.5%

This incremental rise is part of the government’s plan to reach 12% by 2026, and it's a meaningful boost to long-term retirement savings — particularly if compounded over decades.

💡 SMSF Opportunity For SMSF trustees, this rise means higher employer contributions for members — and a timely reminder to review your contribution caps and investment strategy before the end of the 2025–26 financial year. If you're self-employed or making personal concessional contributions, now is a great time to align your strategy with the rising cap.

3. Energy Bill Relief Credits

While not related to super, it’s worth noting that every Australian household will receive a $300 energy bill rebate, distributed in quarterly instalments via your energy provider. Small businesses will receive a $325 discount.

This is part of a broader cost-of-living relief package and will apply automatically — no forms needed.

4. Boosting Disposable Income: What to Do With Your Extra Cash

If you're seeing an increase in your weekly take-home pay (some estimates suggest between $15 and $35 a week for many Australians), it’s a good time to consider putting that money to work.

Some options include:

• Top up your super via salary sacrifice to take advantage of concessional tax treatment.

• Contribute to your Self Managed Super Fund (SMSF) to build long-term wealth in a more controlled environment.

• Use excess cash flow to reduce non-deductible debt such as credit cards or your home loan.

• Create a buffer by topping up your emergency savings or investing in a low-risk vehicle like a term deposit or offset account.

  
  

5. Key Deadlines to Watch

• Contributions deadline: To count toward your 2025–26 concessional cap, ensure any SMSF contributions are received by 30 June 2026, though earlier is better.

• Tax planning window: If you’re adjusting salary packaging, super contributions, or investment structures, act before the end of Q1 FY2025–26 to take full advantage of the changes.

  
  

Final Thoughts: Align Your Strategy with the New Rules

The 1 July changes offer a rare alignment of reduced tax pressure and increased retirement savings potential. For Australians managing their own Self Managed Super Fund (SMSF), this could be a particularly smart window to revisit your investment strategy, explore the benefits of making additional contributions, and consider whether the changing tax environment enhances the case for property investment inside super.

At WT Capital, we help clients navigate these exact transitions with expert guidance. Whether you’re considering a new SMSF property purchase or just want to understand how these shifts affect your long-term plan, we’re here to help.

📞 Book your free consultation today and make the most of FY2025–26.