The new financial year will see plenty of updates and alterations to several factors of daily life.
There are huge changes kicking into gear from July 1 that you should be aware of. (Source: Getty)
There are huge changes coming into force in the next few weeks that will have major implications on certain aspects of Australian life. July 1 marks the beginning of the new financial year, and it's usually a time when certain systems are updated.
Your mandatory employer superannuation contributions will be going up, along with the national minimum wage, and some Centrelink payments will also get a small boost. Some residents will also have to fork out more for their electricity, while parents will get an increase in their Paid Parental Leave.
Here's a handy list of what to expect in the coming weeks.
Increase in superannuation contributions
At the moment, your employer has to pay a minimum of 11.5 per cent of your salary to your superannuation fund. At the beginning of the next financial year, that will jump to 12 per cent.
That is the final legislated increase for compulsory super payments after going up 0.5 per cent every year since 2021.
For someone on $100,000 per year, that's an additional $500 in your super account every 12 months.
If they had another 30 years left of work, that would add more than $47,000 to your retirement nest egg.
The transfer balance cap, which limits the total amount of super that can be transferred into the retirement phase, will also increase by $100,000 from $1.9 million to $2 million.
The maximum super contribution base, which is used to determine the highest limit on any individual employee's earnings base for each quarter of any financial year, will decrease from $65,070 to $62,500.
Minimum wage boosted to nearly $25 per hour
The Fair Work Commission revealed earlier this month how much the national minimum wage would increase by.
It's currently $24.10 per hour, which works out to $915.90 per 38-hour week or $47,626.80 per year.
But this will be hiked by 3.5 per cent on July 1 to $24.90 per hour, or $948 per week.
This comes after Prime Minister Anthony Albanese backed an economically sustainable real wage increase for minimum and award wage earnings.
Paid parental leave goes up
Paid Parental Leave (PPL) will increase to 120 days or 24 weeks after being set at 110 days or 22 weeks.
If your child was born after July 1 last year, you'll be able to get the current rate of the Centrelink payment.
However, if your child is born after July 1 this year, parents will benefit from the extension.
Not only that, but superannuation will start being paid on PPL. This means parents getting the support will get an extra 12 per cent of their payment as a contribution to their super fund.
Huge change in tax debts
From July 1, you won't be able to claim the interest on overdue tax debts as a tax deduction.
The General Interest Charge (GIC) and Shortfall Interest Charge (SIC) will no longer be tax-deductible, which is expected to boost tax revenue by $500 million in 2026 and 2027.
The ATO applies the GIC when a tax debt hasn't been paid by the due date, including where a tax return has been lodged late.
There will be huge changes in superannuation, tax, Centrelink, and other aspects from July 1. (Source: Getty) · Rafael Ben-Ari via Getty Images
Centrelink payments and thresholds are getting hiked
Millions of Centrelink recipients will see a small increase in their payments in the coming weeks from July 1 as part of regular indexation to ensure the cash boosts keep up with the rising cost of living.
That includes payment increases for families receiving the Family Tax Benefit A and B, the Multiple Birth Allowance, and the Newborn Supplement.
Around 2.4 million Australians will benefit from the latest round of indexation, which will see a range of rates, thresholds and limits increase by 2.4 per cent.
That equates to payment increases of between $4.48 to $48.
Income and asset thresholds will also be increased for recipients of the Age Pension, Disability Support Pension and Carer Payment.
Electricity bills set to become more expensive as new rebate kicks in
Your energy bills are set to go up following the start of the new financial year.
AGL's prices will increase by 13.5 per cent in NSW, 7.8 per cent in South Australia, 7.5 per cent in Queensland and 6.8 per cent in Victoria from July 1.
NSW customers will see their bills go up by as much as an extra $300 a year, based on medium usage.
This comes after energy regulators announced its default prices for the new year, which will see standard energy plans rise by up to $228.
But the government has announced a new $150 energy rebate, which will be given out in two $75 instalments over the two remaining quarters of 2025.
Medicare Levy Surcharge thresholds go up
This is an extra tax you have to pay if you earn over a certain amount and don't have private health insurance.
Singles who earn over $101,000 and families who earn over $202,000 and don't have appropriate hospital insurance will now have to pay the surcharge.
This is up from $97,000 and $194,000, respectively.
https://au.finance.yahoo.com/news/ato-centrelink-superannuation-medicare-minimum-wage-all-the-money-changes-coming-from-july-1-200051381.html
