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.

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.

 

[Luckyus]

Throughout this article there is one mention of the word pension? though not in the age pension context, just a generalised mention in a welfare context but no specifics?

 

[John Robert]

Virtually zero for peole on pensions. Most of the so called benefits do not apply to folks on pensions.
Sure the $300 does and the quarterly indexation but no ‘real’ increase in support.
Tax relief?? For those in pensions? Really?

 

[Anmafin]

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

I hear you. I moved to FNQ, bought a house in the good years and had to sell when I returned to NSW. I lost nearly $100,000, but luckily found a place on the Central Coast which was much cheaper than Sydney. It’s been a struggle but I should break even when I’m dead.

 

[Disie]

I neither have, want or need nbn. I have just paid $120 for 200GB of data which includes unlimited talk and text and lasts for 365 days. This equates to $10 per month. This is ample for me as I don’t download movies. I have yet to find a cheaper one and to date have not had any problems with it. Why would I have any need to spend hundreds per month when this provides all I need. I realise this would not be suitable for everyone but you can buy bigger plans with more data at fraction of the cost of nbn.

 

[Jenny Spellacy]

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....

 

[IAN3005]

I believe the 10% increase for Rental Assistance doesn't come into effect until September, when the next Pension Reviews.
Just received my New Lease rent up from $600 P/W to $700...10% increase won't cover much.

That's chicken feed.... try $850 a week..mongerals.....

 

[IAN3005]

I neither have, want or need nbn. I have just paid $120 for 200GB of data which includes unlimited talk and text and lasts for 365 days. This equates to $10 per month. This is ample for me as I don’t download movies. I have yet to find a cheaper one and to date have not had any problems with it. Why would I have any need to spend hundreds per month when this provides all I need. I realise this would not be suitable for everyone but you can buy bigger plans with more data at fraction of the cost of nbn.

JC...... $120 a month..... here Iam trying to get mine below $75 a month....

 

[tumoulin]

Virtually zero for peole on pensions. Most of the so called benefits do not apply to folks on pensions.
Sure the $300 does and the quarterly indexation but no ‘real’ increase in support.
Tax relief?? For those in pensions? Really?

What quarterly indexation?

 

[Gsr]

Nothing much or pensioners. The tax cuts, extra super, wage rise, extra parental payment don’t do anything for pensioners. The $300 energy rebate and rent assistance will help a little. Pensions don’t rise quarterly, we get two very low rises in the pension each year, March and September. Not even enough to cover any rise in cost of living. My hubby doesn’t work, he had a work bonus of over $11,000. It dropped to $8,000 on July 1st, nothing was said about it dropping, it just did. I’m still sending emails to local member asking why my hubby’s pension is affected by what I earn in my part time job, but his work balance is not taken into consideration. No satisfactory replies yet. Probably still counting his money now he has a huge pay rise, undeserved, and not linked to any inflation, cost of living figures Etc. he will get tax cut and $300 energy relief, wow he will be struggling, just like all the other politicians. NOT.

 

[Disie]

JC...... $120 a month..... here Iam trying to get mine below $75 a month....

I think you may have misread my note. I paid $120 for A WHOLE YEAR not a month. This is only $10 per month, considerably less than your $75 a month.

 

[Jerry Attrick]

Australia has always been my home. I was born here and even though I had the chance to immigrate elsewhere on this planet I decided to stay here. My family, my friends, the history we share are my reasons why. I've always been proud of my country but lately, I am thinking that these politicians we elect are connected to the sad decline of this once great nation. Our country is called the lucky country, but is it all based on mere luck? I don't believe it. It's based on hard work. That was my life. All of it. 7 days a week, for sometimes months in a row when work was there. Coming home very late when everybody was in bed or already asleep. Opening pots on the stove to see if anything was left for me to have to eat. In the morning? Off to the building site for more of the same. This was normal for most of us blokes. We just thought nothing of it. Just keep that candle burning at home. Now I'm all worn out and worried about what these politicians are doing to our country. These racketeers. Australia needs a better political system. Something like Switzerland. Australia needs a real political system change for a better future.

 

[mitchellowe]

what in this advertisement is there for the aged pensioners or carers or the disabled
NOTHING ONCE AGAIN

 

[Abby2]

I neither have, want or need nbn. I have just paid $120 for 200GB of data which includes unlimited talk and text and lasts for 365 days. This equates to $10 per month. This is ample for me as I don’t download movies. I have yet to find a cheaper one and to date have not had any problems with it. Why would I have any need to spend hundreds per month when this provides all I need. I realise this would not be suitable for everyone but you can buy bigger plans with more data at fraction of the cost of nbn.

I too would like a plan like that, would you please be as kind and sharing with us which company the plan is with ?

 

[mitchellowe]

Nothing much or pensioners. The tax cuts, extra super, wage rise, extra parental payment don’t do anything for pensioners. The $300 energy rebate and rent assistance will help a little. Pensions don’t rise quarterly, we get two very low rises in the pension each year, March and September. Not even enough to cover any rise in cost of living. My hubby doesn’t work, he had a work bonus of over $11,000. It dropped to $8,000 on July 1st, nothing was said about it dropping, it just did. I’m still sending emails to local member asking why my hubby’s pension is affected by what I earn in my part time job, but his work balance is not taken into consideration. No satisfactory replies yet. Probably still counting his money now he has a huge pay rise, undeserved, and not linked to any inflation, cost of living figures Etc. he will get tax cut and $300 energy relief, wow he will be struggling, just like all the other politicians. NOT.

politicians get the $300 rebate on top of their pay rise and tax cuts which are a lot more than $2000
pensioners get $200 less than last year

 

[Abby2]

politicians get the $300 rebate on top of their pay rise and tax cuts which are a lot more than $2000
pensioners get $200 less than last year

Guess the Labor Party reckons us oldies are so embedded with the party they vote for that they do NOT have to sway our votes

 

[Abby2]

JC...... $120 a month..... here Iam trying to get mine below $75 a month....

I too would like a plan like that
Would you please be as kind and sharing with us which company the plan is with ?

 

[tumoulin]

Nothing much or pensioners. The tax cuts, extra super, wage rise, extra parental payment don’t do anything for pensioners. The $300 energy rebate and rent assistance will help a little. Pensions don’t rise quarterly, we get two very low rises in the pension each year, March and September. Not even enough to cover any rise in cost of living. My hubby doesn’t work, he had a work bonus of over $11,000. It dropped to $8,000 on July 1st, nothing was said about it dropping, it just did. I’m still sending emails to local member asking why my hubby’s pension is affected by what I earn in my part time job, but his work balance is not taken into consideration. No satisfactory replies yet. Probably still counting his money now he has a huge pay rise, undeserved, and not linked to any inflation, cost of living figures Etc. he will get tax cut and $300 energy relief, wow he will be struggling, just like all the other politicians. NOT.

Try writing an Email to the Minister Bill Shorten with your questions. I did a while back and about a week after received a meaningful response and shortly after that the matter got settled. I was pleasantly surprised.

 

[Hollingworthlake]

Whilst any savings are appreciated I keep harping on about Doctors who don’t bulk bill. I am going to have to change to a bull billing practice and I don’t really want to because my doctor has knowledge of me and my records. I have taken this large gap for me to him and he told me the Clinic can’t survive if they bulk bill. I don’t believe him and several of my friends are bull billed at other nearby practices

 

[IAN3005]

Any rebate from the government is a mere diversion tactic.

 

[IAN3005]

Whilst any savings are appreciated I keep harping on about Doctors who don’t bulk bill. I am going to have to change to a bull billing practice and I don’t really want to because my doctor has knowledge of me and my records. I have taken this large gap for me to him and he told me the Clinic can’t survive if they bulk bill. I don’t believe him and several of my friends are bull billed at other nearby practices

Don't you worry.... Drs make a fortune out of bulk billing..... check your last statement for Medicare.
The cardiologist I visit has you do an ECG test every time you visit the practice... at $38 a shot this is money for nothing.