Australian cost of living are starting a new financial year on Tuesday with a suite of changes that will affect their income, savings and costs. From amendments to superannuation and minimum wages to increased electricity bills, July 1 sees the pushing of a raft of crucial changes that will impact workers, employers and families across the nation.

Changes to wages, superannuation, parental leave and electricity prices can affect household budgets across Australia. Even when some changes increase income or retirement contributions, households may still need to manage rising living expenses and other financial commitments.

While these reforms pave the way for greater long-term fiscal stability for many Australians, they also serve as a warning that it’s important to plan carefully and to make wise financial decisions.

Superannuation WILL INCREASE from 11.5% to 12%

There are some key changes for the 2019-20 financial year, with the increase of the superannuation guarantee rate among the most significant. Employers must pay 11.5 per cent of an employee’s ordinary time earnings to their superannuation fund from July 1. That rate is set to rise to 12 per cent on July 1, 2025.

For employees, it means more money put away for retirement. If you are on a salary packaging deal with super included, you should also check if your employer’s contributions will be affected. For employers, the increase amounts to a slightly higher payroll cost per employee, and it’s one more figure to carefully track when building a budget.

Minimum Wage Boost for Workers

The national minimum wage has increased by 3.5 per cent since July 1. Minimum wage workers will now receive $24.95 an hour, or $948 a week on a 38-hour week.

This rise will affect millions of Australian cost of living working in the retail, hospitality, aged care and other industries. It also shifts more responsibility onto small business owners to modify payrolls appropriately. Workers on award rates will also get flow-on increases, cushioning some of the impact of rising living costs.

Paid Parental Leave is Increased to 24 Weeks

Families with children born or adopted after July 1, 2025, will now qualify for 24 weeks of paid parental leave, up from 20 weeks. This will be stretched to 26 weeks in 2026.

More flexibility exists now, such as more days’ worth of leave for partners and the capacity for either parent to take leave at the same time. These changes provide better support for working families by enabling more time at home with a newborn without loss of income.

Electricity Bills Set to Rise

The Australian cost of living electricity is going up for families across a patch of the country that includes New South Wales, South East Queensland and South Australia. The Default Market Offer (DMO) in these states has increased as well, so you’ll find that there are higher base rates for plans to begin with, as set out by the Australian Energy Regulator.

As super contributions go up, wages lift and energy bills surge, it will leave many Australian cost of living with some new amounts to budget for every month. At times like these, taking a look at your home loan could provide some relief.

This is where professional advice can be invaluable. Here at OM Financials Services, we assist people and families in comparing loans from over 50 banks and lenders to find financing options that fit their current lifestyle and future aspirations. If you are looking for a personalised mortgage consultation and would like for us to review your mortgage options and rates from various lenders, contact OM Financial to assist you in determining what’s the best way to organise loans can are in your best interests. You can schedule your appointment online at any time. Please call us at 0478 876 967 to speak with a mortgage professional.

Frequently Asked Questions

1. What Australian cost of living changes can affect Australian households?

Changes to wages, superannuation, energy prices, parental leave entitlements and other household expenses can affect how much money families have available for spending and saving.

2. When did the superannuation guarantee rate reach 12%?

The superannuation guarantee rate reached 12% from 1 July 2025. Employees should check current official guidance for applicable contribution requirements.

3. Can refinancing help with household expenses?

Refinancing may provide a different interest rate or loan structure, depending on eligibility and available products. Borrowers should compare fees, total interest costs, Australian cost of living loan features and repayment terms before deciding.

Disclaimer: This article is general information only and does not constitute financial, tax, legal or investment advice. Government rates, entitlements and energy prices may change. Check current official information and seek advice appropriate to your circumstances.