Toll and public transport relief among changes in NSW from July1

A raft of new measures introduced to help households with the rising cost-of-living across New South Wales take effect from tomorrow.

Motorists, public transport users and wage earners are the biggest winners.

However, some businesses will see added pressure to their bottom line with changes to anti-money laundering laws and mandated new food waste regulations from July 1.

Public transport, car and toll relief

The new financial year means the weekly toll cap for private motorists has temporarily been reduced to $50, from $60.

While charges will be capped for those using toll roads the most, July 1 will see the usual quarterly increases, impacting those motorists using toll roads less frequently.

However, toll administration fees have been scrapped, saving at least $10 for drivers to receive toll bills in the mail if their e-tag does not work.

In last week's state budget, NSW Treasurer Daniel Mookhey said "one of the biggest rip-offs on our roads" was the administration fee attached to toll notices.

The state government will also take up to $100 off car registrations and $80 off motorbike regos this year.

For those leaving the car at home, Opal fares are set to be frozen at 2025 prices for 12 months.

Three hours of free electricity

From July 1, some NSW households will be able to access at least three hours of free electricity each day under the Solar Sharer Offer (SSO).

The scheme will apply to renters and home owners who have a smart meter in areas covered by the Australian Energy Regulator's Default Market Offer.

People will be able to sign up through their retailer if they meet the eligibility requirements.

National wages and parental leave

The start of Australia's new financial year will see a rise in the national minimum wage, and a 4.75 per cent increase for minimum award wages.

The Fair Work Commission announced its decision in May this year following the 2026 Annual Wage Review.

The national minimum wage has now increased to $1,004.90 per week or $26.44 per hour.

Government-funded parental leave pay is also set to rise by 10 days — up to 130 days for those with children born or adopted after July 1.

Mandatory organic recycling in NSW

New laws will come into effect across the state mandating that supermarkets, large hospitality venues, and even hospitals, recycle their food and organic waste.

Those businesses will have to separate their food organics and garden organics, known as FOGO, with the NSW Environment Protection Authority (EPA) saying the state's landfill was fast running out of space.

"Your business can save costs on waste disposal to landfill, improve business operations, reduce your carbon footprint and divert food waste for beneficial reuse," the EPA said on its website.

It applies to sites that have a weekly general waste capacity of:

Six or more 660 litre bins, or

16 or more 240 litre bins, or

any combination of bins equal to or more than 3,960 litres.

Waste Management and Resource Recovery Association of Australia CEO Gayle Sloan said it was a move to benefit all levels of the economy.

"It provides our industry certainty to invest in facilities to make compost, and that enables jobs to be created," she said.

Ms Sloan said a lot of consultation had already happened with talks underway to keep organics out of landfill in a positive move for the environment and the economy.

Jeff Angel from the Total Environment Centre said the community has been supportive of FOGO.

"So it really is a matter of the government catching up with community aspirations which are very strongly disposed towards recycling and getting this stuff out of landfill into reuse and composting and having significant environmental benefits," he said.

Ms Sloan said businesses had been getting ready, with facilities already being built.

"We know we can make good products out of organic material, and we have seen good investment in Western Sydney with more coming on the edge of Sydney."

Federal anti-money laundering and counter-terrorism laws

New anti-money laundering and counter-terrorism financing laws will come into effect for some small businesses such as lawyers, accountants and real estate agents.

The regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC), said the second tranche of ongoing reforms target smaller businesses.

"The reforms are designed to close gaps that criminals have been exploiting and to address the increasing sophistication of financial crime," according to the AUSTRAC's official website.

Actions mandated for some businesses include:

Client identities to be verified.

Compliance programs.

Reporting and record keeping, with small businesses to be required to monitor client activity and submit suspicious matter reports.

Enrolment, where impacted businesses will be required to enrol with the regulator AUSTRAC.

Real Estate Institute of NSW (REINSW) CEO Tim McKibbin said the additional compliance requirements would add to the administrative burden faced by real estate businesses.

"When we add to that the reform program of the state government, compliance costs are going to skyrocket," he said.

"For many businesses, to satisfy their compliance obligations they will need to employ a person dedicated solely to compliance."

In order to support members and the industry, REINSW has bolstered its education and training in anti-money laundering and counter-terrorism financing for real estate businesses, grounded in the essential elements of the AUSTRAC starter kit.

"We have developed robust systems which will ensure businesses not only meet all their obligations to protect themselves and mitigate risk, but which also alleviate the ongoing administrative burden associated with increased compliance," Mr McKibbin said.

NSW Small Business Commissioner Kalina Koloff acknowledged that extra staff time, training, new systems and investment would be needed by some businesses.

"The challenge is ensuring businesses can comply without creating unnecessary complexity," she said.

The costs of complying, she added, were "rarely absorbed in one place" and "how those costs are managed will vary between businesses".