Remember Labor promised you $5 extra a week? 14 changes starting July 1, from tax cuts to price hikes
The end of the financial year is not only a time to ramp up stock sales, it also brings with it some important legal and financial changes; You may notice some of these right away in your salary package.
tax deductions
The Albanian government’s surprise election campaign tax cut will begin on Wednesday, July 1.
This will benefit 12 million workers, who will take home an extra $268 a year, or about $5 a week.
The tax cut reduces the 16 percent tax rate on incomes between $18,000 and $45,000 to 15 percent. The rate will be reduced again to 14 percent from July 2027.
Instant tax deduction
Workers will be able to claim an instant $1,000 tax deduction without needing to provide a receipt. Labor predicts this will affect 6.2 million Australians and save an average of $205 in taxes. However, starting in July 2027, you cannot select the $1,000 write-off option until you deposit your refund.
Paid parental leave
Parents will receive an extra two weeks of paid parental leave, bringing the total to six months.
Families will receive $30,000 for the time they stay home to care for their newborn. The annual income limit will increase to $186,487 for individuals and $386,525 for families, making more parents eligible for assistance.
Thanks to indexation, the Family Tax Benefit payment will also increase.
Minimum wage increase
Millions of workers will receive pay rises from July 1 after the Fair Work Commission approved a 4.75 per cent increase in wages. Minimum wage workers will be given a 6 percent raise.
The increase brings the minimum annual wage, based on a 38-hour workweek, above $50,000 a year for the first time. That figure will rise to $1004.90 per week or $26.44 per hour, up from $948 per week and $24.95 per hour last year.
cheaper electricity
Once the maximum price that retailers can charge is reduced, households will begin to feel relief from rising energy prices.
The Australian Energy Regulator announced earlier this year that it would reduce the maximum price on standard electricity plans, known as default market offers, from July 1.
The move reduced prices on the east coast by as much as 8 percent, with some customers potentially losing hundreds of dollars a year.
Payday Super
Employers will be required to pay retirement benefits every paycheck, rather than quarterly.
More frequent payments mean the pension fund has more time to accrue interest, so retirement savings grow faster and it also makes it easier for employees and regulators to spot missing contributions.
The concessionary super contribution threshold will also increase from $30,000 to $32,500.
SMS sender record
You may have already received a text about the new SMS sender ID registration designed to combat impersonator scams.
From July 1, businesses must register a “sender ID” that will appear on messages sent to customers, letting them know it’s from a reputable source.
Messages from those who have not registered will be labeled as “unverified”. While not all unverified messages are scams, consumers are asked to be careful.
Businesses can have their identities verified through telecommunications companies.
Parcel price increase
The cost of sending parcels across Australia will rise by just under 5 per cent, with the cost of any given letter rising by a further 15 cents, from $1.70 to $1.85.
Other creeping costs to watch out for: Tolls in major cities will rise in line with inflation, NBN prices will also rise slightly, and registering a business with ASIC will also become marginally more expensive.
Ban on price gouging in supermarkets
Large supermarkets will be banned from charging excessive prices for groceries, but questions remain about how the ban will be enforced.
The independent institution will strengthen the protection of nature within the scope of the national environmental standard for the first time.
EPA’s responsibilities include training and compliance, issuance of permits and licenses, evaluation of projects, and setting conditions for approval under the authorization of the minister of the environment.
Veteran Welfare Agency
The body, recommended by the Royal Defense and Veterans’ Suicide Commission, would give veterans faster access to improved welfare and health payments, including funeral benefits or travel for treatment.
The government announced late last year that it would fund the agency with $78 million over the next four years, marking the biggest overhaul of the veterans’ benefits system in 40 years.
National Commission for Aboriginal and Torres Strait Islander Children and Young People
The commission will officially launch on July 1 to promote and protect the rights of First Nations children and youth.
The agency will advise the government on how to implement laws that will deliver the best outcomes for young people and aims to improve cooperation between levels of government.
Sue-Anne Hunter is the inaugural commissioner.
Fuel consumption tax reduction
The fuel consumption tax cut, which was reduced by 32 cents per liter at the pump, will be reduced as of July 1.
Next month, drivers will benefit from a 16 cent discount per liter on gasoline and diesel. The fuel tax is expected to fully return on August 2.
indexing
The rate of government payments will be indexed to inflation, increasing the amounts received. This includes JobSeeker, pension and redundancy domestic violence payment.
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Brittany Busch is the federal politics correspondent for The Age and the Sydney Morning Herald.Connect via email.
