The changes from July 1 that will affect our finances
A host of changes will come into effect from July 1, with Australians potentially benefiting from adjustments to superannuation, taxes and even Centrelink payments.
As the new financial year rolls in, so do new regulatory and legislative reforms.
Here’s a guide to what’s changing.
Superannuation
The superannuation guarantee – the minimum amount employers must contribute to employees’ super – will rise from 11.5 per cent to 12 per cent.
The new rate applies to all salary and wages paid on or after July 1, even if the work was performed before that date.
Along with the increase, the federal government will pay superannuation on its paid parental leave scheme for the first time.
Meanwhile, the maximum super contribution base will drop from $65,070 to $62,500.
Pensions
While the pension rate is not going up, increased income and asset thresholds mean more people will be entitled to benefits and higher payments.
From Tuesday, the thresholds will be adjusted to better keep up with inflation, with couples who are asset-tested receiving a $34.50 fortnight increase and singles getting $22.50.
The asset cut-off point for when the pension begins to be reduced will decrease from $481,500 for couples and $321,500 for singles to $470,000 per couple and $314,000 for singles.
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Minimum wage
From Tuesday, the minimum wage will increase by 3.5 per cent after the Fair Work Commission approved the increase in the national minimum award to $948 per week, or $24.95 an hour.
The increase will apply from the first full pay period starting on or after July 1.
Minimum award wages will also increase by the same percentage.
Tax
Families receiving Family Tax Benefit (FTB) Part A will see an increase in payments from July 1.
The maximum rate for FTB Part A will rise to $227.36 a fortnight for children under 13, and $295.82 for those aged 13 and over.
The maximum rate of FTB Part B is also increasing to $193.34 per fortnight, or $134.96 for families whose youngest child is five or older.
The increases are a continuation of annual adjustments, introduced in 2000.
Cost of living assistance
Australians receiving payments from Centrelink will get a 2.4 per cent boost to their payments to help ease the rising cost of living.
Additionally, in Victoria the Victorian Default Offer electricity price will be set at $1675 from July 1.
In South Australia, the state government will introduce cost-of-living measures that include capping the price of a 28-day student pass on the MetroCard down from $28.60 to $10.
Parental leave
Australian families will benefit from an expanded paid parental leave scheme from July 1 as the length of government-funded leave increases from 20 to 22 weeks.
The increase is part of a federal government plan to extend the parental leave scheme to 26 weeks (or six months) by July 2026.
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The policy aims to give parents more time at home with their newborn children and greater flexibility in how they take leave.
Parents are able to take time off together or separately. They can also spread the leave over two years to allow staggered returns to work or shared caring arrangements.
NDIS
There will be several changes to the National Disability Insurance Scheme from July 1 as part of its annual pricing review.
The changes include new, lowered maximum rates that providers can charge NDIS participants.
The change comes after a review found some limits were “out of step with broader market rates”.
Physiotherapy sessions have been reduced by $10 to $183.99 an hour, for example, while prices for psychology sessions have been standardised at $223.99 across all states and territories.
Other changes include removing the establishment fee some providers charged participants for setting up their services.
Disability support workers, meanwhile, will recieve a 3.95 per cent pay increase from July 1.
Road rules
New AI-powered surveillance cameras will be used throughout Australia from July 1 to detect when drivers are holding or using mobile phones.
In NSW there will be harsher penalties if someone is caught not wearing a seatbelt, as fines rise 3.2 per cent, in line with the CPI.
NSW will also begin trials of average speed cameras for cars and motorcycles in two locations.
Queensland will reduce speed limits in selected areas and traffic fines will also increase by 3.5 per cent.
Victorians will need to slow to 40km/h when passing roadside assistance vehicles, tow trucks or emergency response vehicles that are flashing their lights.
In South Australia, similar rules will apply, with a limit of just 25km/h on some roads.
Western Australians will face fines of up to $700 for using a mobile phone while driving and more than $1600 for excessive speeding.
Skilled migrants
Income thresholds for skilled visa-holders will rise by 4.6 per cent when the annual indexation takes effect from July 1.
The Core Skills Income Threshold and Temporary Skilled Migration Income Threshold will increase from $73,150 to $76,515.
The Specialist Skills Income Threshold, meanwhile, will increase to $141,210.
The changes do not apply to existing visa holders and nominations lodged before Tuesday.
