Prepare your wallets: Here are several changes in the new financial year
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As the calendar flips to July, Australians expect a mix of financial shifts that could impact their daily lives and long-term savings.
From tax cuts to energy bill adjustments and even the cost of staying connected via the internet, the new financial year brings with it a raft of changes.
Here is a comprehensive guide on what to expect and how to prepare for the changes coming in for the next financial year.
Tax time tweaks
The much-anticipated stage 3 tax cuts are rolling out, and it promises to leave more pocket money each payday.
Unlike one-off tax rebates, these cuts could reduce the amount of tax withheld from your salary, effectively boosting take-home pay.
This could mean extra money for weekly shops, medical expenses, or even spoiling the grandkids.
Minimum wage boosts
For those still in the workforce, including seniors who work part-time, the minimum wage is on the rise.
A 3.75 per cent increase translates to an additional $33 per week for full-time workers, which could ease the pinch of rising living costs for many.
Enhanced paid parental leaves
For new grandparents supporting their children through parenthood, paid parental leaves are extended by two weeks, up to a total of 22.
This increment will benefit new parents and provide additional support to extended families often involved in child-rearing.
Superannuation guarantee uplift
In a move that will benefit retirement nest eggs, the superannuation guarantee will increase from 11 to 11.5 per cent.
This mandatory contribution from employers to your super fund means you'll be saving more for retirement without extra work.
Energy bill relief and price adjustments
The government's $300 energy bill relief will manifest as quarterly rebates of $75, automatically applied to bills.
Additionally, most Australians will see a decrease in energy bills due to new default market offers.
However, South-East Queensland residents could face a slight increase.
Rent assistance and welfare payment increases
To alleviate the housing affordability crisis, Commonwealth Rent Assistance will increase by 10 per cent.
This is a significant boost for those renting in the private market.
Furthermore, a range of welfare payments, including pensions, will see an increase through quarterly indexation, which could provide relief against inflation.
Engineered stone ban and housing targets
For those planning some home renovations, engineered stones have been banned after health risks due to crystalline silica.
The government's housing targets are now aiming to address the housing crisis by boosting the supply of new homes, eventually leading to more affordable housing.
Navigating NBN price changes
On the less positive side, wholesale NBN price increases could mean many will face internet bill increases.
While some plans may decrease in price, review your current plan and consider shopping around for alternatives.
You can also negotiate with your current provider to ensure you're getting the best deal.
Passport price hike
For those planning overseas trips, passport fees are increasing.
A 10-year adult passport now costs $398.
A new fast-track fee was also introduced for expedited processing, which is handy for last-minute travel plans.
As we navigate these changes, it's crucial to stay informed and adjust your budget accordingly.
Whether it's a slight increase in your internet bill or a welcome tax cut, preparing will help you make the most of your finances in the new financial year.
Remember, if you need clarification on how these changes affect you or need advice on managing your finances, feel free to seek professional guidance.
Are you prepared for the changes in the new financial year? Share your thoughts and money-saving strategies with us in the comments below.
From tax cuts to energy bill adjustments and even the cost of staying connected via the internet, the new financial year brings with it a raft of changes.
Here is a comprehensive guide on what to expect and how to prepare for the changes coming in for the next financial year.
Tax time tweaks
The much-anticipated stage 3 tax cuts are rolling out, and it promises to leave more pocket money each payday.
Unlike one-off tax rebates, these cuts could reduce the amount of tax withheld from your salary, effectively boosting take-home pay.
This could mean extra money for weekly shops, medical expenses, or even spoiling the grandkids.
The much-anticipated stage 3 tax cuts will take effect today, 1 July. Image Credit: Shutterstock/Roman R
Minimum wage boosts
For those still in the workforce, including seniors who work part-time, the minimum wage is on the rise.
A 3.75 per cent increase translates to an additional $33 per week for full-time workers, which could ease the pinch of rising living costs for many.
Enhanced paid parental leaves
For new grandparents supporting their children through parenthood, paid parental leaves are extended by two weeks, up to a total of 22.
This increment will benefit new parents and provide additional support to extended families often involved in child-rearing.
Superannuation guarantee uplift
In a move that will benefit retirement nest eggs, the superannuation guarantee will increase from 11 to 11.5 per cent.
This mandatory contribution from employers to your super fund means you'll be saving more for retirement without extra work.
Energy bill relief and price adjustments
The government's $300 energy bill relief will manifest as quarterly rebates of $75, automatically applied to bills.
Additionally, most Australians will see a decrease in energy bills due to new default market offers.
However, South-East Queensland residents could face a slight increase.
Rent assistance and welfare payment increases
To alleviate the housing affordability crisis, Commonwealth Rent Assistance will increase by 10 per cent.
This is a significant boost for those renting in the private market.
Furthermore, a range of welfare payments, including pensions, will see an increase through quarterly indexation, which could provide relief against inflation.
Engineered stone ban and housing targets
For those planning some home renovations, engineered stones have been banned after health risks due to crystalline silica.
The government's housing targets are now aiming to address the housing crisis by boosting the supply of new homes, eventually leading to more affordable housing.
Navigating NBN price changes
On the less positive side, wholesale NBN price increases could mean many will face internet bill increases.
While some plans may decrease in price, review your current plan and consider shopping around for alternatives.
You can also negotiate with your current provider to ensure you're getting the best deal.
Passport price hike
For those planning overseas trips, passport fees are increasing.
A 10-year adult passport now costs $398.
A new fast-track fee was also introduced for expedited processing, which is handy for last-minute travel plans.
As we navigate these changes, it's crucial to stay informed and adjust your budget accordingly.
Whether it's a slight increase in your internet bill or a welcome tax cut, preparing will help you make the most of your finances in the new financial year.
Remember, if you need clarification on how these changes affect you or need advice on managing your finances, feel free to seek professional guidance.
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