The new financial year is just weeks away and will bring some big changes for Australians.
Starting July 1, tax cuts, a $300 energy rebate, wage increases for low-income workers, cost-of-living relief and an increase in passport fees will be implemented.
These are the consequences for you from July 1.
Tax cuts
Labor has delivered tax cuts that will benefit millions of Australians.
Under the updated phase three tax cuts, households can expect tax savings ranging from $350 to $4,500 per year, depending on their income group.
The tax rate for people earning between $19,000 and $45,000 has been reduced from 19 percent to 16 percent. That gives those making $45,000 a year an extra $805 a year.
‘From July 1, all 13.6 million taxpayers will receive a tax cut. The average annual tax cut is $1,888, or $36 per week,” said Treasurer Jim Chalmers.
This is what you get per year under the tax cuts:
$18,200 or less: nothing
$19,000: $24
$45,000: $805
$60,000: $1,179
$80,000: $1,679
$120,000: $2,679
$135,000: $3,729
$190,000 and above: $4,529
In the May Budget, Treasurer Dr Jim Chalmers (pictured) announced: ‘From July 1, all 13.6 million taxpayers will receive a tax cut. The average annual tax cut is $1,888, or $36 per week
Not only will many low-income workers benefit from a greater tax benefit, the minimum wage and incentive wages will also increase by 3.75 percent from July 1.
From July 1, parents are eligible for 110 days, or 22 weeks, based on a five-day working week
Relieving the energy bill
The Albanian government’s much-discussed energy rebate of $300 for every household will be activated from July 1.
All households will have an automatic $300 credit applied to their electricity bills, while a million small businesses will also receive a $325 discount on their bills.
Energy companies will apply $75 credits to each quarterly energy bill under the rebate scheme.
“Every household will now get energy bill relief under the Albanian government,” Dr Chalmers said:
The measure would not increase inflation, but rather put downward pressure on it, Dr. Chalmers explained.
‘The Treasury estimates that this will immediately reduce headline inflation by around half a percentage point over the 2024-2025 period and is not expected to contribute to broader inflationary pressures.’
Minimum wage
Following a recent decision by the Fair Work Commission, the minimum wage and incentive wages will increase by 3.75 percent from July 1.
Based on a full-time, 38-hour work week, the national minimum wage will increase from $23.23 per hour to $24.10 per hour.
This translates to an increase from $882.80 per week to $915.91 per week, giving Australians on minimum wage an extra 33.10.
Centrelink payment boost
Social security benefits for almost 2.4 million Australian households and retirees will soon get a boost.
Changes to the quarterly indexation of income thresholds will come into effect from July 1, to ensure government support keeps pace with inflation.
Extensions to the current income and asset limits mean that payments will increase for five schemes, including the Family Tax Allowance (both Parts A and B), the Multiple Birth Allowance, the Newborn Supplement, the Stillborn Baby Payment and the Essential Medical Payment equipment.
For families with children under age 13 who receive Part A family tax benefits, the maximum biweekly payments will increase by $8.68 to $222.04.
Households with children over 13 could receive a maximum fortnightly benefit of $288.82 – an increase from $11.34.
The Part A family tax credit surcharge will also increase by $36.50 to $916.15, and by $18.25 to $448.95 for households paying the Part B family tax credit.
Indexation changes will also increase the income thresholds for people on parental leave benefits.
Income eligibility requirements are also extended for people on Single Parenting Benefit, Old Age Pension, Disability Pension and Care Benefit.
Asset limits for people on Jobseeker’s Allowance, Special Allowances, ABSTUDY, Austudy, Youth Allowance and Parenting Benefits will also be increased.
Paid parental leave
From July 1, Australia’s paid parental leave scheme will be expanded.
Eligible parents can currently receive up to 100 days of paid leave or 20 weeks, based on a five-day work week.
From July 1, parents are eligible for 110 days, or 22 weeks, based on a five-day working week.
In July 2025 this will increase to 120 days or 24 weeks, and then to 130 days or 26 weeks in July 2026.
From July 1, Australian students who faced huge increases in their HECS/HELP loans due to higher inflation will be due repayments
The Australian superannuation guarantee will increase by 0.5 percent from July 1 to a total of 11.5 percent
Starting July 1, all households will automatically have a $300 credit applied to their electric bill
Pension
From July 1, Australia’s superannuation guarantee will increase by 0.5 percent to a total of 11.5 percent, before rising a further 0.5 percent to 12 percent next year.
When this reaches 12 percent on July 1, 2025, the government will pay extra for paid parental leave.
With the start of the new financial year, the maximum amounts for super contributions will also be increased.
The pre-tax contribution cap in 2024-25 will be set at $30,000, up from $27,500 in 2023-24.
The after-tax cap will rise to $120,000 from $110,000 in 2023-2024.
Passport price increase
Australian travelers traveling abroad will face higher costs from July 1.
The cost of a 10-year adult passport will rise from $346 to $398, an increase of 15 percent.
The government is also introducing a new Fast Track passport service from July 1.
Eligible Australian customers can rest assured that their passport application will be processed within 5 working days.
The Fast Track service costs an additional $100 on top of the regular passport application fee.