Quick Answers
      Back to home
      1. Help Centre
      2. End of Financial Year
      3. Quick Answers

      Which legislative changes taking effect on 1st April 2025 will impact my payroll?

      Updated: February 2025

      There are four confirmed changes directly affecting payroll for the 24/25 financial year. They fall into place on 1st April 2025, and are:

      • Minimum wage increase
        • Adult minimum wage will increase by 1.5% from $23.15 to $23.50 per hour
        • Starting out and training minimum wage will remain at 80% of adult minimum wage, increasing from $18.52 to $18.80 per hour
      • ACC Earners Levy increase
        • ACC Earners Levy rate will increase by 4.3% incl. GST from $1.60 to $1.67 per $100
        • Maximum annual threshold for liable earnings will increase from $142,283 to $152,790
      • Student loan threshold remains the same
        • At $24,128, which translates to $464 per week.
      • ESCT bracket threshold changes
         
        The new ESCT thresholds:  Tax Rate:
        $0 - $18,720 10.5%
        $18,721 - $64,200 17.5%
        $64,201 - $93,720 30%
        $93,721 - $216,000 33%
        $216,001 upwards 39%

      The Thankyou Payroll system will automatically update to reflect ACC Earners Levy and Student Loan threshold changes. Our system will also update the brackets for ESCT tax rates so you can select the appropriate brackets for your employees.

      As an employer, you must keep your employees informed about any differences they may notice in their paychecks as a result of these changes.

      Info - Blue Block (1)Two updates are the employer's responsibility and not done automatically by our system.

      These are:

      1. Adapting to wage thresholds is the employer's responsibility. You might need to change the pay rate during a pay period. Our help article will show you how to do this easily.
      2. Setting the correct ESCT rate based on your employee's total earnings from all sources, or at a higher rate if as per employee request.

      * A final note regarding updates to thresholds on 1st April 2025: 

      The fringe benefit tax (FBT) threshold will also change, and you will need to apply a new alternative tax rate calculation method with the new rates applying from 1st January 2025 for final quarter returns. So, please look out for that updated FBT guide (IR409) available from the 1st April 2025.

      Links to further information:

      Follow these links to find out more information on the increases listed above:

      No matter your needs, we've got your back.