The start of a new financial year in Australia brings several important changes that could affect your income, retirement savings and family finances.

From higher minimum wages and income tax relief to significant superannuation reforms and expanded parental leave benefits, many of the changes taking effect from 1 July are designed to improve financial outcomes for Australian workers and families.

In this episode of SBS Hindi’s Money Matters, host Swati Sharma speaks with tax expert Nitin Saby, widely known as the “Tax Surgeon” and a former Australian Taxation Office (ATO) Tax Executive with more than 15 years of experience. Together, they break down the key financial changes in simple, easy-to-understand language and explain what they mean for employees, employers and retirees.

Key topics covered in this episode

National Minimum Wage Increase

Australia’s national minimum wage has increased to $26.44 per hour, representing a 4.75% rise. Employees should see this increase reflected automatically in their pay, although checking your payslip is always a good idea.

Income Tax Relief

From 1 July, the tax rate on income between $18,201 and $45,000 has been reduced from 16% to 15%, providing modest tax savings for eligible taxpayers.

Major Changes to Superannuation Payments

One of the most significant reforms is the introduction of more frequent superannuation payments. Instead of employers paying super quarterly, super contributions will increasingly move closer to employees’ regular pay cycles, improving transparency and helping workers track their retirement savings more effectively.

Nitin Saby explains why this change is good news for employees and what small business owners should do to prepare for the impact on cash flow management.

Paid Parental Leave Expansion

Families welcoming a new child from 1 July will benefit from expanded government-funded Paid Parental Leave arrangements, including:

• An increase from 120 to 130 days of paid leave.
• More reserved leave for partners.
• Superannuation contributions paid on government-funded Paid Parental Leave.

Higher Super Contribution Caps

Australians planning for retirement will be able to contribute more to their superannuation through concessional contributions, with the annual cap increasing from $30,000 to $32,500.

This change provides additional opportunities for individuals to grow their retirement savings in a tax-effective way.

When Should You Lodge Your Tax Return?

Many taxpayers rush to lodge their returns as soon as the financial year ends. However, Nitin Saby recommends waiting until late July or later to ensure important information such as income statements, bank interest and private health insurance details have been pre-filled by the ATO, helping to reduce errors and avoid amendments.

Listen to the Full Conversation

In this informative episode, Nitin Saby shares practical insights on tax, superannuation and financial planning, helping listeners understand how the latest changes could affect their finances in the year ahead.

🎧 Listen the full podcast here

Disclaimer

The information discussed in this episode is general in nature and does not constitute personal financial, taxation or legal advice. Individuals should seek advice from a registered tax agent or qualified financial adviser before making financial decisions.