The 2025-26 financial year has ushered in a wave of legislative changes that will impact our clients across financial planning, accounting, business advisory, and lending.
Here’s what matters for your financial world:
Superannuation Changes Worth Noting
- Super Guarantee reaches 12% – The final scheduled increase took effect in July. For someone earning $100,000, that’s an additional $500 annually flowing into super
- Superannuation on parental leave – Parents with children born or adopted after 1 July 2025 will receive super contributions on government-funded parental leave payments, starting from July 2026
- Transfer balance cap increases – Now indexed to $2 million, providing more capacity for moving funds into pension phase where earnings are typically tax-free
- Contribution caps expiring – Unused concessional contribution caps from 2019-20 expire this financial year – your last opportunity to use these under the carry-forward rules
Business and Tax Changes
- Minimum wage rises 3.5% – For business owners with employees, wages rose to $24.95 per hour, with corresponding award wage increases across industries
- ATO interest no longer deductible – General Interest Charge (GIC) and Shortfall Interest Charge (SIC) incurred after 1 July 2025 can’t be claimed as tax deductions
- Instant Asset Write-Off extended – The $20,000 threshold continues for 2025-26, though without permanent legislation – making strategic timing of equipment purchases important.
- Payday Super commences July 2026 – Business owners should begin preparing now. Super contributions will move from quarterly payments to being paid with each payroll, requiring system upgrades and process changes
First Home Buyer Opportunities
- Expanded guarantee schemes – From January 2026, the First Home Guarantee removes income caps and regional restrictions, allowing all eligible buyers to purchase with 5% deposits
- Help to Buy scheme launches – New shared equity program enables eligible buyers to enter the market with just 2% deposits
- Higher property price caps – Significant increases across major cities, with Sydney’s cap rising from $900,000 to $1.5 million
Aged Care Changes Coming November 2025
Major reforms to aged care fees take effect from 1 November 2025. These changes fundamentally alter how aged care is funded and what families can expect to pay.
These changes could add thousands to annual costs for many residents, making it crucial to understand your options if aged care is in your near-term plans.
Read our comprehensive guide to aged care changes here.
Navigate Advisory has offices in Balmain, Brighton-Le-Sands and Hurlstone Park.
Any advice provided in this article is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.her to find solutions that work for your entire family.