The new financial year is just weeks away, bringing 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.
Here’s how you’ll be affected starting July 1.
Tax cuts
The Labor Party has implemented tax cuts that will benefit millions of Australians.
Under the updated stage three tax cuts, households can expect tax savings ranging from $350 to $4,500 a year, depending on their income level.
The tax rate for people earning between $19,000 and $45,000 has been reduced from 19 percent to 16 percent. That will give those making $45,000 a year an extra $805 a year.
‘Starting 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.
Here’s what you’ll get from the tax cuts each year:
$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 up: $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 an increased tax break, but minimum wage and award wages will also increase by 3.75 percent starting July 1.
Starting July 1, parents will be entitled to 110 days, or 22 weeks, based on a five-day work week.
Energy bill relief
The Albanian government’s much talked about $300 energy rebate for each household will be activated starting July 1.
All households will see a $300 credit automatically applied to their electricity bills, while one million small businesses will also receive $325 off their bills.
Energy companies will apply $75 credits to each quarterly energy bill under the rebate scheme.
“All households will now receive energy bill relief under the Albanese government,” Dr Chalmers said:
The measure would not increase inflation but would put downward pressure on it, Dr. Chalmers explained.
“Treasury estimates this will directly reduce headline inflation by around half a percentage point in 2024-25 and is not expected to increase broader inflation pressures.”
minimum salary
Following a recent decision by the Fair Work Commission, minimum wage and award wages will increase by 3.75 per cent from 1 July.
Based on a full-time 38-hour workweek, 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 minimum wage Australians an extra $33.10.
Centrelink payment boost
Social security payments for almost 2.4 million Australian households and pensioners will soon receive a boost.
Quarterly indexation changes to income thresholds will take effect from July 1, to ensure government support keeps pace with inflation.
Extensions to the current income and asset limits mean payments will increase for five schemes, including Family Tax Benefit (Parts A and B), Multiple Birth Allowance, Newborn Supplement, Stillborn Payment and payment for essential medical equipment.
For families with children under age 13 who receive the Part A family tax benefit, the maximum biweekly payments will increase from $8.68 to $222.04.
Households with children 13 and older could receive a maximum biweekly payment of $288.82, an increase of $11.34.
The supplement for the Part A Family Tax Benefit will also increase from $36.50 to $916.15, and from $18.25 to $448.95 for households with the Part B Family Tax Benefit payment.
The indexation changes will also increase income thresholds for people receiving parental leave allowance.
Income eligibility requirements will also be extended for people receiving the Single Parenting Payment, the Age Pension, the Disability Support Pension and the Carer’s Payment.
Asset limits will also be increased for people receiving Job Seeker Payment, Special Benefit, ABSTUDY, Austudy, Youth Allowance and Parenting Payment.
Paid parental leave
From July 1, Australia’s paid parental leave scheme will be expanded.
Currently, eligible parents can get up to 100 days of paid leave or 20 weeks, based on a five-day workweek.
Starting July 1, parents will be entitled to 110 days, or 22 weeks, based on a five-day work 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 were hit with massive increases in their HECS/HELP loans due to higher inflation are due to receive refunds.
Australia’s superannuation guarantee will increase by 0.5 per cent, to a total of 11.5 per cent from 1 July.
All households will see a $300 credit automatically applied to their electric bills starting July 1.
retirement
From July 1, Australia’s superannuation guarantee will increase by 0.5 per cent, to a total of 11.5 per cent, before rising another 0.5 per cent to 12 per cent next year.
When it reaches 12 percent on July 1, 2025, the government will begin paying a surplus for paid parental leave.
The start of the new financial year will also see limits on super contributions increase.
The pre-tax contribution limit in 2024-25 will be set at $30,000, up from $27,500 in 2023-24.
The after-tax limit jumps to $120,000, from $110,000 in 2023-24.
Passport price increase
Australian travelers heading overseas will face higher costs from July 1.
The cost of a 10-year adult passport will increase from $346 to $398, a 15 percent increase.
The government will also introduce a new Fast Track passport service from 1 July.
Eligible customers residing in Australia will be guaranteed that their passport application will be processed within 5 business days.
Fast Track service costs an additional $100 on top of the normal passport application fee.
