Millions of Australians are about to experience a significant change in their lives, and it’s all happening on July 1.
This Tuesday marks the start of a new financial year, and with it comes a slew of changes from state and federal governments. For many, it means more cash in their pockets.
From increasing the minimum wage to extending paid parental leave, these changes are designed to reduce cost-of-living pressures for everyday Australians.
There are also new road rules being rolled out, including harsher penalties in some states. So, what do you need to know about these changes?
Minimum Wage Boost
The National Minimum Wage is getting a 3.5% increase, jumping from $24.10 per hour or $915.90 per week to $24.95 per hour or $948 per week.
This means about 2.9 million Aussies on low and award wages will receive a pay rise.
Centrelink Indexation
Centrelink payments and thresholds will increase by 2.4% on July 1, in line with regular indexation. It may not be a huge increase, but it’s a welcomed boost for about 2.4 million Centrelink recipients.
Superannuation Changes
The minimum amount employers contribute to employees’ superannuation accounts will rise from 11.5% to 12%. Plus, superannuation will now be paid on all government-paid parental leave.
More Paid Parental Leave
Paid parental leave is increasing to 24 weeks (or 120 days) from July 1, so parents can spend more time with their new babies. All individual and family income limits on paid parental leave will also increase.
Support for Students and Apprentices
On top of slashing student loan debts by 20%, the government is increasing the minimum income Australians must earn before they’re required to start paying back their loans to $67,000 (subject to the passage of legislation).
Eligible nursing, midwifery, teaching, and social work students will receive $319.50 per week in Commonwealth Prac Payments from July 1.
New tradies can expect a financial boost, with those taking up apprenticeships in housing construction set to receive $10,000 in incentive payments on top of wages.
Energy Bill Relief
Australian households will receive another $150 in energy bill relief from July 1, as will about one million small businesses.
The government will also cover about 30% of the cost of installing a battery system alongside solar energy for households and businesses looking to slash their energy bills under the Cheaper Home Batteries program.
Aged Pension Changes
From July 1, Australians receiving the age pension will benefit from adjusted income and asset thresholds designed to better keep up with inflation.
The cut-off point has been lowered from $481,500 to $470,000 for couples and from $321,500 to $314,000 for singles.
As a result, couples who are asset-tested will receive a $34.50 fortnight increase to their age pension payments, while singles will receive an extra $22.50 per fortnight.
National Disability Insurance Scheme
The NDIS will introduce several changes this week, including lowering the maximum rates providers can charge some NDIS participants and removing establishment fees for participants.
Disability support workers will also get a 3.95% pay increase from July 1.
That’s a lot to take in, but these changes are designed to make life easier for millions of Australians. So, what do you think about these changes? Share your thoughts in the comments!