The huge cash boost millions of Aussies are getting TODAY: What you need to know

Australians are set to receive their long-awaited tax cuts as minimum wage workers get a pay rise and everyone gets a lightening on their electricity bills.

July 1 marks not only the start of the new financial year, but also the debut of Labour’s revised stage three tax cuts and a raft of measures to help combat the cost of living.

Finance Minister Jim Chalmers insists these extras will not worsen Australia’s inflation crisis or lead to another rate hike. However, there are fears that the Reserve Bank will cause more problems in August.

“The tax cuts that will apply to all taxpayers from Monday are within the same budget as already taken into account in the Reserve Bank and Treasury forecasts,” said Dr. Chalmers Friday.

‘We’ve also made sure that when it comes to energy bill relief, cheaper medicines and Commonwealth housing benefits, these are designed to put downward pressure, not upward pressure, on prices.’

Here’s what you need to know about the cash splash.

Tax cuts in phase three

Australia’s 13.6 million taxpayers will get relief from July 1, but Labor’s revisions to the former Coalition government’s stage three tax cuts will deliver more benefits to low- and middle-income earners.

Part-time workers making $45,000 a year — or less than the new full-time minimum wage of $47,627 — will get $805 a year back instead of nothing.

Those earning $80,000 — slightly more than the median wage of $74,500 — will get $1,679 back instead of $875.

Labor has retained the 37 per cent tax band for those earning between $135,000 and $190,000.

Meanwhile, the 45 percent tax bracket will kick in at $190,000 instead of $200,000.

That means high-income earners earning $2,000,000 will get $4,529 back instead of the original $9,075.

Increasing the minimum wage

Australia’s 2.7 million lowest-paid workers will get a 3.75 per cent pay rise on Monday, boosting their hourly wages by $24.10 and taking their weekly wages to $1000. €915.90.

Such minimum wage increases are often repeated in national pay, but the wage increase will be lower than the 4 percent inflation rate in May – meaning they will be hit by a reduction in real wages.

According to Justin Smirk, senior economist at Westpac, the increase is unlikely to lead to a rate hike as the Fair Work Commission has only awarded a small increase.

“The RBA would take comfort in the decision,” he said.

‘The FWC indicated that they not only took into account the rising cost of living for workers affected by the decision, but they also took into account the revised tax relief in phase three and the broader cost of living relief that these workers will receive from July 1.’

Australia’s 2.7 million lowest-paid workers will get a 3.75 per cent pay rise on Monday, increasing their hourly wages by $24.10 and bringing their weekly wages to $915.90 (pictured is a barista in Parramatta, Sydney)

Electricity discounts

Everyone, regardless of income, will receive a $300 rebate on their electricity bill starting July 1, divided into four quarterly installments of $75.

This cut will last only one year, and there are serious concerns that inflation will rise again once it expires in June 2025 – or even fail to bring inflation down as promised.

Unlike a previous $500 rebate for seniors and health card holders, this $300 rebate, which will cost the budget $3.5 billion, will not be means-tested.

Prime Minister Anthony Albanese promised at the last election to cut the average annual electricity bill by $275 by 2025.

But in the year to May, electricity bills rose 6.5 percent – ​​a level above inflation.

The Reserve Bank left interest rates unchanged this month at a 12-year high of 4.35 percent, but in the accompanying statement it endorsed the electricity discount as a form of government spending that will not contribute to inflation.

“Recent budget outcomes could also affect demand, although federal and provincial energy cuts will temporarily lower inflation,” the report said.

“Continued service price inflation is a major uncertainty.”

Commonwealth Housing Benefit

Although Dr Chalmers spoke about the 10 per cent increase in the Commonwealth’s rent subsidy, this measure does not come into effect until September 20.

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