Monday is July. More specifically it’s July 1 and a raft of changes come into effect that signal the start of a new financial year.
Newsreel has done the hard work for you and trawled the internet to compile a list of what you need to know.
Taxes:
The Stage 3 tax cuts are here. No more need for those “how much will you get” calculators. Check your first payslip to see how much of an income bump you receive.
Minimum wage:
The minimum wage increases by 3.75 percent, from $23.23 to $24.10 an hour, or an extra $33 per week (before tax) for a full-time employee.
Paid parental leave:
Eligible parents will get access to an extra two weeks of publicly-funded leave, bringing the total up to 22. That figure will increase by another two weeks in both 2025 and 2026.
Superannuation:
The superannuation guarantee increases from 11 to 11.5 percent. That’s the percentage of your salary an employer must pay into your super account. It will increase again on July 1, 2025, to 12 percent.
The concessional contributions cap for superannuation will increase from $27,500 to $30,000. Concessional contributions are those made pre-tax (e.g. through salary sacrificing). They are taxed at a special 15 percent rate within super.
The cap for non-concessional contributions, which you make with post-tax income, will also increase from $110,000 each financial year to $120,000.
Energy bills:
All Australians will receive a $300 discount off their power bills. They will be delivered in lots of $75, every quarter, and be applied directly to your bill.
All Queenslanders will also receive an extra $1000, again paid as a direct credit on your bill.
Some power bills across Australia will also generally be cheaper with new default market offers (DMO) coming into effect.
However, in South-East Queensland the DMO is not falling, like in other states, but rising by 2.2 percent for those using controlled load and 4.9 percent for those who aren’t. That equates to $51 and $97 hip-pocket hits respectively.
So, Queenslanders will actually see their underlying power bills rise after all the government freebies wash through.
Welfare payments:
Commonwealth Rent Assistance will go up by 10 percent. This year’s increase comes on the back of a 15 percent rise last year, which represents the first back-to-back boosts in more than 30 years.
The disability support pension will increase by $50 a fortnight. Singles will receive $1,050 a fortnight, while couples will get $1600.
Jobseeker payments for those with a “partial capacity to work” will increase by $27.50 a week.
Also, more than two million Aussies will benefit when a raft of welfare payments increase through the next instalment of quarterly indexation. See the full list.
Internet:
The wholesale NBN price increases by between $2.22 and $2.52 a month. The exact out-of-pocket costs vary depending on your provider and what plan you’re on.
Passports:
The cost of an adult 10-year adult passport will increase to $398, up from the current $346. There will also be a new extra fast-track fee of $100 introduced to get an application processed within five business days.
Visas:
Visitor visa holders and temporary graduate visa holders won’t be able to apply for student visas onshore.
The Post-Vocational Education Work stream will only be available to under-35s, excluding Hong Kong and British nationals who may apply until age 50.
The Post-Higher Education Work stream carries the same age reforms.
Engineered stone:
The sale, production, installation and any other work involving engineered stone is now illegal. While some states are transitioning, in Queensland it is a hard ban from Monday.
Vaping:
Vapes containing nicotine will only be able to be legally sold by pharmacies to people who have a prescription from their doctor. From October 1, they can be obtained at pharmacies without a prescription.
Smoking:
New laws come into effect in Queensland around second-hand smoke. Children cannot stay with a parent in a smoking area for an extended period and workplaces must attempt to limit the exposure of under-18 staff to second-hand smoke. Venues are also obligated to install smoke-free buffers between areas.
Medicare:
Thresholds for the Medicare Levy Surcharge will be increasing. For singles it is an income of $97,000 and for families $194,000, up from $93,000 and $186,000 respectively. The surcharge is a penalty you pay if you earn over a certain amount and don’t have private health insurance. It is up to 1.5 percent of your income.
Health insurance:
Thresholds for the private health insurance rebate are increasing. Singles who earn up to $97,000 and families who earn up to $194,000 will be able to qualify for the highest rebate of 24.608 per cent, up from $93,000 and $186,000.
The rebate decreases the more you earn. Singles will be able to earn up to $151,000 and families up to $302,000 and still get a rebate, up from $144,000 and $288,000.
Staff training:
The Skills and Training Boost, a policy granting an extra 20 percent tax deduction on eligible SME expenditure on staff training, is ending.
Energy incentives:
The Small Business Energy Incentive Scheme, which provides a bonus 20 percent tax deduction on eligible energy-saving upgrades, ends.
Environmentally sustainable procurement:
Businesses providing high-value goods and services to the federal government will need to meet new climate, environmental, and circularity criteria. The policy begins on July 1 for construction contracts valued at $7.5 million and above, but will apply to IT, fit-out, and textile providers from July 1, 2025.
Apprenticeship incentives:
A scheme of financial incentives to hire trainees will change. It had provided $4000 for employers hiring full-time apprentices in Priority List occupations, and support payments of up to $3000 for full-time apprentices. It is now providing $5000 to employers of full-time apprentices and $5000 to full-time apprentices.
Tariffs:
A number of “nuisance” imports will now be tariff-free. These include small goods like toothbrushes and sanitary products.
Fair work contracts:
Another section of the Closing Loopholes Act will come into effect targeting the role of Delegates’ rights terms in contract negotiations.
Unions will also get the chance to apply for exemption certificates regarding the 24-hour notice needed to enter a Fair Work investigation into alleged underpayment.
