Prepare your wallets: Here are several changes in the new financial year

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.


compressed-tax time.jpeg
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.
Key Takeaways

  • Stage 3 tax cuts have come into effect, which means working Australians will take home more of their salary every payday thanks to income tax reductions.
  • The minimum wage also increased by 3.75 per cent, giving a pay rise to Aussies.
  • A variety of welfare payments will increase due to quarterly indexation, including the Commonwealth Rent Assistance, which rose by 10 per cent.
  • There will be a $300 rebate for household energy bills to help counter the cost of living. However, NBN prices and passport fees also increased.
Are you prepared for the changes in the new financial year? Share your thoughts and money-saving strategies with us in the comments below.
 
Sponsored
Just another visual of the never ending saga of the dog chasing his tail, where everything just keeps on going up.

The wonders of Albo, Chalmers, Bowen & "Dong" wont be happy until they "Bury" the lot of us with their misery with which they bestow upon us. This is of course with the help of the complete & utter "Dill Bill" greens.

"Wot" a pack of rat bags we have.
 
Just another visual of the never ending saga of the dog chasing his tail, where everything just keeps on going up.

The wonders of Albo, Chalmers, Bowen & "Dong" wont be happy until they "Bury" the lot of us with their misery with which they bestow upon us. This is of course with the help of the complete & utter "Dill Bill" greens.

"Wot" a pack of rat bags we have.
Please also be even-handed - Remember the "wonders" of NSW Premier Baird, who promised that our power bills would go down after 'privatisation' due to competition between suppliers... We ordinary people are doomed as politicians from all sides boost the incomes of their mates.
 
Not a whole lot of joy there for pensioners, is there???? Where do they think we can get the extra money just to exist? Most of us are too old and unable to work. Our costs have gone up by way more than we have seen rises to our pension. This was the very worst Budget for Pensioners, thanks to this thoughtless Government. All for the workers and nothing for us. Even the $300 for electricity is $200 less than last year, but I just got a letter detailing increases to my gas and electricity We're just going backwards....
 
Tax cuts are much harder to verify than the past 2 assistance tax refunds which we saw go into our bank accounts, making it hard to trust what they're "giving" us & i daresay for someone under the tax free threshold or very low income mean nothing!

Super guarentee, how does this effect casual employees?

$300 energy bill only for Concession card holders, not those who earn only a fraction too much to get a card??

And NBN hike is devastating as I'll most likely have to disconnect as my wifi/nbn is already a luxury in my budget without another price increase! Aussie only recently increased & I'm already on cheapest plan I'm led to believe...

Not really anything here in this article for me (63yo earning around $5-600 per week & no concession card), to get excited about, can't wait til I'm 67yo & elligible for a pension & concession card! :(

Hopefully helpful for others here!
 
I have asked about the money we are meant to get like the one off payments and was told that are no one off payment so I’m totally confused
I believe there were 2 economic stimulous packages (think that's their name), which should have been included in tax refunds for those under cut off taxable incomes - the info was on a google web site but not sure if it's still there! Perhaps enquire at ATO or Clink/Services Aust
 
People earning an income will receive more take-home pay but those of us who cannot work, on old age and disability pensions, continue to struggle. Why not give us the same pay rise you're giving to workers when you cut their tax. What makes the government think workers need more money to live on than pensioners. Really!!!!! 😧 I have to sell my house because I just can't afford to run a home. Now I've had an insurance premium hike of $120 per fortnight. I can't drop insurance because the bank still has a mortgage over it. I'm now on hardship payments for the first time in my life. Very embarrassing. But at the age of 70 I'm going to be homeless if I can't find somewhere to rent because I can't afford to buy another home. Must be low set now. I'll have to try and take on long-term house sits provided there are no farm animals and too much mowing.

My life was supposed to be comfortable in my old age. Never, in my wildest dreams, have once had investment properties, which, during COVID dropped so low panic sale thus owing the bank $100000 just for one apartment. I had to sell my home and buy in an island where I could get a small home but then another two properties were sold adding to my debt. Sold my home and moved farther north to Forrest Beach where I bought very cheap. Property has gone up considerably but nothing much is selling. No grey nomads visiting this year.

Well, I'm broke and could have done with getting an equal rise the workers are going to receive through rax reduction which they're saying equates to $10 per week.

Just saying, complaining, begging - whatever

Cheers
 
People earning an income will receive more take-home pay but those of us who cannot work, on old age and disability pensions, continue to struggle. Why not give us the same pay rise you're giving to workers when you cut their tax. What makes the government think workers need more money to live on than pensioners. Really!!!!! 😧 I have to sell my house because I just can't afford to run a home. Now I've had an insurance premium hike of $120 per fortnight. I can't drop insurance because the bank still has a mortgage over it. I'm now on hardship payments for the first time in my life. Very embarrassing. But at the age of 70 I'm going to be homeless if I can't find somewhere to rent because I can't afford to buy another home. Must be low set now. I'll have to try and take on long-term house sits provided there are no farm animals and too much mowing.

My life was supposed to be comfortable in my old age. Never, in my wildest dreams, have once had investment properties, which, during COVID dropped so low panic sale thus owing the bank $100000 just for one apartment. I had to sell my home and buy in an island where I could get a small home but then another two properties were sold adding to my debt. Sold my home and moved farther north to Forrest Beach where I bought very cheap. Property has gone up considerably but nothing much is selling. No grey nomads visiting this year.

Well, I'm broke and could have done with getting an equal rise the workers are going to receive through rax reduction which they're saying equates to $10 per week.

Just saying, complaining, begging - whatever

Cheers
So many in similar situations for the first time & when it matters most to be comfortable/retiring, not battling to survive/eat/keep warm roof overhead! Things are really fkt up now- immigration stats are not helping either
 
I receive the paltry amount of $153.50 per fortnight for caring for my husband. It would cost the government a darn sight more if he was put into care. I receive a Carer's Allowance not a Carer's Pension.
I and many others are in the same boat - the government relies on the fact that you will just keep on your caring role. We are in our early seventies and often the carer is not very fit either. I worry about the future and how we will cope if either of us gets worse.
 
Tax cuts are much harder to verify than the past 2 assistance tax refunds which we saw go into our bank accounts, making it hard to trust what they're "giving" us & i daresay for someone under the tax free threshold or very low income mean nothing!

Super guarentee, how does this effect casual employees?

$300 energy bill only for Concession card holders, not those who earn only a fraction too much to get a card??

And NBN hike is devastating as I'll most likely have to disconnect as my wifi/nbn is already a luxury in my budget without another price increase! Aussie only recently increased & I'm already on cheapest plan I'm led to believe...

Not really anything here in this article for me (63yo earning around $5-600 per week & no concession card), to get excited about, can't wait til I'm 67yo & elligible for a pension & concession card! :(

Hopefully helpful for others here!
Reply to Cheezil...Get out of NBN for a start!
My husband used to work for the PMG...when it was that name.We are pensioners.
When NBN started, he read up about it and said NO!
We have a plan with Telstra .We make very few phone calls as we email people, rather than phone them.
Our SET monthly bill is $77. It covers 2 wireless modems and a landline.We also use Aldi sims for a fraction of their usual cost. This includes tv.

We have never had a breakdown with any of it...while our next door neighbours with NBN are out for days at a time.
Hope this helps you.
 
Just another visual of the never ending saga of the dog chasing his tail, where everything just keeps on going up.

The wonders of Albo, Chalmers, Bowen & "Dong" wont be happy until they "Bury" the lot of us with their misery with which they bestow upon us. This is of course with the help of the complete & utter "Dill Bill" greens.

"Wot" a pack of rat bags we have.
Granted that the ALP is pathetic, but the LNP since Howard has proved dangerously damaging to AUstralia. As for the Greens, until Don Chipp died, the Democrats were more useful than either.
 
Reply to Cheezil...Get out of NBN for a start!
My husband used to work for the PMG...when it was that name.We are pensioners.
When NBN started, he read up about it and said NO!
We have a plan with Telstra .We make very few phone calls as we email people, rather than phone them.
Our SET monthly bill is $77. It covers 2 wireless modems and a landline.We also use Aldi sims for a fraction of their usual cost. This includes tv.

We have never had a breakdown with any of it...while our next door neighbours with NBN are out for days at a time.
Hope this helps you.
We are on optus wifi. We said no to nbn and all our friends said you have to be on it. But no you don't. You have a choice and can decide what you pay and with who and not be caught up in the debacle of nbn
 

Join the conversation

News, deals, games, and bargains for Aussies over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, the club is all about helping you make your money go further.
  • We believe that retirement should be a time to relax and enjoy life, not worry about money. That's why we're here to help our members make the most of their retirement years. If you're over 60 and looking for ways to save money, connect with others, and have a laugh, we’d love to have you aboard.
  • Advertise with us

User Menu

Enjoyed Reading our Story?

  • Share this forum to your loved ones.
Change Weather Postcode×
Change Petrol Postcode×