Call Us Today: (08) 9535 4604

What do small business owners need to know about the recent Federal Budget?

The recent Federal budget has brought numerous changes, including significant pay increases and superannuation reforms.  

Aged care workers can expect an interim 15% pay increase, delivering an extra $7,500 to $10,000 a year and will not be phased in incrementally as initially planned.  

Further reforms are hinted at, including a federal approach to criminalising wage theft, greater protection for gig workers, and standing up for casual workers.  

Small business owners should take note of a change in superannuation contributions, which will be paid on payday, starting from July 2026, giving employees greater visibility over their payments.  

A 30% tax rate has been announced for superannuation balances over $3m as of 2025.  

Families will also benefit from an enhanced paid parental leave scheme, with 26 weeks of leave available by 2026 and single-parent payments extended for another six years, and more financial assistance for early childhood education. 

This is in additional to enhanced Child Care Subsidy rates which have increased to 90% for families on a combined income of $80,000 or less.  

For families earning over $80,000, the subsidy rate will gradually reduce by 1% for every additional $5,000 in family income up to a max of $530,000, at which point the subsidy will be 0%.  

A typical family earning about $120,000 with a child in care three days a week will save about $1,700 a year. 

For more, follow HR Legal Connect on LinkedIn.

Share this Blog

Other Blogs

Get in touch with us today!

If you have interest in getting in contact with us today, please do not hesitate to leave your details and we will get back to you as soon as possible!