Start the New Year right with these must-know financial changes that will impact your budget
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As we welcome the New Year, it's important to be aware of the financial changes that could impact your wallet.
On January 1, 2024, several price increases began to take effect, impacting everything from preschool fees to Medicare.
However, it's not all doom and gloom, as some support payments will also increase, and new rebates will take effect.
Here's a comprehensive rundown of what to expect.
Centrelink Payments
In line with inflation, some support payments will see a 6 per cent increase from January 1.
This means a little extra cash for those who need it most.
Youth Allowance and Austudy will increase by $45.60 a fortnight, ABSTUDY by $86 a fortnight with supplementary payment increases, disability support pension for under 21s by $44.90 a fortnight and Carers Allowance by $8.70.
Medicare
Medicare safety net thresholds will also increase, meaning the amount people have to spend on out-of-hospital medical expenses before qualifying for a higher rebate has increased—this is in line with indexation based on inflation.
The Original Medicare Safety Net will increase to $560.40 for both concessional and non-concessional individuals and families.
Once you reach this threshold in a calendar year, you get 100 per cent reimbursed for out-of-hospital medical services listed on the Medicare Benefits Schedule.
The Extended Medicare Safety Net will increase to $811.80 for concessional individuals and families and $2544.30 for non-concessional.
Once the threshold for out-of-pocket costs is met, Medicare will pay 80 per cent of future costs. This essentially benefits households with significant medical bills.
Health Insurance Extras
If you have health insurance extras, they'll reset from January 1.
So all unclaimed extras for healthcare visits, including the dentist or different therapists, will be reset—leaving thousands of dollars of available claims unused.
Changes to University Requirements
In a move to support struggling students, universities will replace the 50 per cent pass rule with a 'support for students policy'.
This means students who were previously at risk of losing their Commonwealth help due to failing half their units will now receive more support.
State-Specific Changes
In New South Wales, motorists who spend more than $60 a week on tolls will get the remainder back—up to $340 a week.
However, the state's stamp duty exemption on zero and low-emission vehicles will end, as will the $3000 rebate on full battery electric and hydrogen fuel cell vehicles.
School-aged families receiving Family Tax Benefit A or B will receive 2 x $50 vouchers for the year.
In Victoria, new homes will have to connect to electric networks as gas is banned in all new builds.
A temporary land tax surcharge will be introduced for the next 10 years, with varying rates depending on the value of the land.
Landholding valued between $50,000 and $100,000 will receive a $500 surcharge, while those valued between $100,000 and $300,000 will receive a $975 surcharge.
Lands valued over $300,000 will receive a $975 surcharge plus 0.1 per cent of the taxable value.
Family homes remain exempt from land tax.
Queensland will offer free preschool for all kids attending a government-approved program. They can attend for free 15 hours a week for 40 weeks a year.
FairPlay vouchers will also be available for Queensland families who can score $150 for sports and active recreation programs.
In South Australia, the $3000 electric vehicle rebate is ending. However, people who have already bought a car but haven't had it delivered yet are still eligible.
In the Australian Capital Territory, preschool for three-year-olds will be free at select providers for 300 hours a year.
While in the Northern Territory, families will be eligible for the $100 learn-to-swim voucher. The government will provide two lots per year for kids under 5.
Members, what are your thoughts on these changes? Let us know in the comments below!
On January 1, 2024, several price increases began to take effect, impacting everything from preschool fees to Medicare.
However, it's not all doom and gloom, as some support payments will also increase, and new rebates will take effect.
Here's a comprehensive rundown of what to expect.
Centrelink Payments
In line with inflation, some support payments will see a 6 per cent increase from January 1.
This means a little extra cash for those who need it most.
Youth Allowance and Austudy will increase by $45.60 a fortnight, ABSTUDY by $86 a fortnight with supplementary payment increases, disability support pension for under 21s by $44.90 a fortnight and Carers Allowance by $8.70.
Some financial changes took effect on January 1. Image source: Drazen Zigic on Freepik.
Medicare
Medicare safety net thresholds will also increase, meaning the amount people have to spend on out-of-hospital medical expenses before qualifying for a higher rebate has increased—this is in line with indexation based on inflation.
The Original Medicare Safety Net will increase to $560.40 for both concessional and non-concessional individuals and families.
Once you reach this threshold in a calendar year, you get 100 per cent reimbursed for out-of-hospital medical services listed on the Medicare Benefits Schedule.
The Extended Medicare Safety Net will increase to $811.80 for concessional individuals and families and $2544.30 for non-concessional.
Once the threshold for out-of-pocket costs is met, Medicare will pay 80 per cent of future costs. This essentially benefits households with significant medical bills.
Health Insurance Extras
If you have health insurance extras, they'll reset from January 1.
So all unclaimed extras for healthcare visits, including the dentist or different therapists, will be reset—leaving thousands of dollars of available claims unused.
Changes to University Requirements
In a move to support struggling students, universities will replace the 50 per cent pass rule with a 'support for students policy'.
This means students who were previously at risk of losing their Commonwealth help due to failing half their units will now receive more support.
State-Specific Changes
In New South Wales, motorists who spend more than $60 a week on tolls will get the remainder back—up to $340 a week.
However, the state's stamp duty exemption on zero and low-emission vehicles will end, as will the $3000 rebate on full battery electric and hydrogen fuel cell vehicles.
School-aged families receiving Family Tax Benefit A or B will receive 2 x $50 vouchers for the year.
In Victoria, new homes will have to connect to electric networks as gas is banned in all new builds.
A temporary land tax surcharge will be introduced for the next 10 years, with varying rates depending on the value of the land.
Landholding valued between $50,000 and $100,000 will receive a $500 surcharge, while those valued between $100,000 and $300,000 will receive a $975 surcharge.
Lands valued over $300,000 will receive a $975 surcharge plus 0.1 per cent of the taxable value.
Family homes remain exempt from land tax.
Queensland will offer free preschool for all kids attending a government-approved program. They can attend for free 15 hours a week for 40 weeks a year.
FairPlay vouchers will also be available for Queensland families who can score $150 for sports and active recreation programs.
In South Australia, the $3000 electric vehicle rebate is ending. However, people who have already bought a car but haven't had it delivered yet are still eligible.
In the Australian Capital Territory, preschool for three-year-olds will be free at select providers for 300 hours a year.
While in the Northern Territory, families will be eligible for the $100 learn-to-swim voucher. The government will provide two lots per year for kids under 5.
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