We’re two weeks into the new financial year, and you might have noticed something different in your pay packet.
Or you might not have noticed at all, which is exactly how most people react to financial year changes. They happen, things shift slightly, and we keep going without realising what actually changed or what it means.
However, changes on 1 July can add up, especially when they happen every year.
What Changed on 1 July
Superannuation Contributions Increased
Your employer’s super guarantee contribution went up. As of 1 July 2026, it’s at a higher percentage than it was on 30 June. That means more of your pay is going into your super account automatically.
If you’re self-employed or own a business, your contribution rate may have changed too.
This is good news for your retirement – more of your money is being locked away for future you. But it might also mean slightly less in your take-home pay this pay cycle.
Tax Thresholds Adjusted
The amount of income before you start paying tax at each bracket may have shifted. This affects how much tax comes out of your pay.
Depending on your income level, you might be paying slightly more tax, slightly less tax, or the same amount. It depends on where you fall in the brackets.
Government Payments Changed
If you receive any government payments (Family Tax Benefit, JobSeeker, Age Pension, Disability Support Pension), those thresholds and amounts adjust on 1 July.
This could mean your payment increases, decreases, or stays the same. If you’re eligible for any payments, check the ATO or Services Australia website to see if your entitlements changed.
Some Insurance and Service Costs May Have Changed
Because companies use the financial year, some charges and fees adjust around this time.
Your car insurance, home insurance, health insurance – renewal dates often align with the financial year, so premiums may have changed. Some service providers also adjust their fees on 1 July.
What It Means for Your Household
If your super contribution increased, that’s good news for your retirement. But your take-home pay is slightly lower.
If tax thresholds adjusted in your favour, you might be keeping a bit more. If they adjusted against you, you’re keeping a bit less.
If government payments changed, your household cash flow is affected.
If insurance premiums increased, your bills are higher.
All of these changes are relatively small on their own. But added together, they can shift your budget noticeably.
What You Should Do Right Now
Check your recent pay slip. Compare it to a pay slip from late June (before 1 July). What changed?
Look at:
- Super contribution amount
- Tax amount
- Take-home pay total
Write down the difference. Even if it’s only $20 per pay, that adds up to over $500 per year.
Once you know what changed, you can adjust your budget if needed.
If Your Take-Home Pay Decreased
Where can you find that money? Can you cut back on something? Do you need to redirect money from savings? Or do you just need to update your budget to reflect the new reality?
If Your Take-Home Pay Increased
Where should that extra go? Into savings? Towards paying off debt? Building your emergency fund? Don’t just let it disappear into random spending – give it a job.
If Insurance or Service Costs Increased
Do you need to update your budget to account for the higher costs? Can you shop around for better rates? Or do you just accept the increase and adjust your budget?
The Bigger Picture
On 1 July every year, things change. Your super contribution increases a bit more. Tax thresholds adjust. Government payments shift. Costs go up.
Most people don’t track these changes. They just notice their pay is slightly different and assume it’s normal.
But if you’re aware of what’s changing and why, you can make intentional decisions about it instead of just letting it happen to you.
That’s the difference between reacting to your money and managing your money.
Don’t Just Ignore It
Don’t assume your budget from last month still works this month. Pull up your pay slip. See what’s different. Update your budget if you need to.
The more aware you are of what’s coming and going from your account, the better decisions you can make about where it goes.
Want Help Adjusting Your Budget for the New Financial Year?
If you’re not sure whether your budget still works after the 1 July changes, book a free call and we can chat about what shifted and what adjustments might help.
Or check out my coaching packages if you want ongoing support to manage your money intentionally.
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Disclaimer: This information is general in nature and doesn’t take your personal circumstances into account. Always seek professional advice for your specific situation.
