It can be hard to keep up with all the things we need to know in business, and changes to the law can be no exception.

I'm sharing with you below some of the major legal and regulatory changes coming into effect from 1 July 2025 that could impact your business. As always, my goal is to help you stay ahead of potential issues, because I constantly say, in business, prevention is better than cure (and it’s far less costly!).

ATO Debt Interest No Longer Tax Deductible: This is a big one. From 1 July 2025 interest charged by the ATO on tax debts (and yes, this includes payment plans with the ATO) will no longer be tax deductible. This is a significant change that makes late tax payments even more costly.

What you should do: Review your tax payment processes and cash flow management. Talk to your clever bookkeeper or accountant if you need help putting a plan in place to manage your ATO liabilities.

Superannuation Guarantee Increases to 12%: We all know this has been coming, so the superannuation guarantee rate increases from 11.5% to 12% on 1 July will come as no surprise. This is the final step in the gradual increase that began in 2021.

What you should do: Make sure your payroll systems are updated and be sure to budget for the increased costs. Don't forget to review any fixed-price service agreements or employment contracts that might need updating to reflect these increased costs.

Minimum Wage Increase of 3.5%: The National Minimum Wage increases by 3.5%, effective from the first full pay cycle starting on or after July 1, 2025.

What you should do: Review all employee wages to ensure compliance, not just those on minimum wage. Check your award rates and update payroll systems accordingly. This is also a good time to review your pricing if wage costs significantly impact your service delivery.

Enhanced Parental Leave Parental Leave Pay increases to 120 days for children born or adopted from 1 July 2025, with the ATO now paying 12% superannuation on these payments.

What you should do: Update your HR policies and employee communications about parental leave entitlements. Consider how this extended leave period might affect your business planning and project timelines.

Skilled Visa Income Thresholds Rise Salary thresholds for employer-sponsored visa categories will increase, affecting businesses that sponsor overseas workers.

What you should do: If you currently sponsor visa holders or are planning to, review the new thresholds and ensure your salary packages meet the requirements. This may require updating employment contracts or visa applications.

Tax Changes on the Horizon

Proposed Tax on Large Super Balances: While not yet passed by the Senate, 1 July 2025 is the proposed start date for a new tax on unrealised superannuation gains over $3 million.

What you should do: If this affects you, consider speaking with your financial advisor about restructuring strategies. Even though it hasn't passed yet, it's worth understanding the potential implications.

Privacy Law Changes

I shared about privacy law changes in my last update back in February. The Commonwealth Privacy Act is undergoing a significant update, and the small business exemption is likely to be removed. This means your business will need to comply with privacy laws that previously only applied to larger organisations.

What you should do: If you are a client of mine and we have developed your privacy policy, you don’t need to do anything, you are compliant ahead of the changes coming into effect.

If you don’t have a privacy policy, start thinking about having this developed for your business because once the changes come into effect this will be something you will need to action.

Looking Ahead

These changes represent significant shifts in compliance obligations and costs for many businesses. From my litigation experience, I know that businesses that stay proactive about regulatory changes are the ones that avoid expensive problems down the track.

This time of year is ideal for taking stock of where things are in your business. Review your existing contracts and agreements to ensure they are up to date; take some time to consider the changes shared above and consider how this impacts your business; update your systems and processes where necessary, and always check in with your business lawyer, bookkeeper and accountant to ask questions when you’re unsure!

Remember, staying compliant isn't just about avoiding penalties and pit-falls, it's about positioning your business for long-term sustainable success.

Ready to strengthen your legal foundations? Book your Complimentary Introduction Call and let’s chat about what your business really needs.