From July 1, a wave of significant changes will take effect across Australia, marking the beginning of the new financial year. These include increases to wages and Centrelink payments, new superannuation rules, an expanded paid parental leave scheme, and targeted cost-of-living relief.
Here’s a breakdown of the major reforms and how they could affect your finances.
WAGE INCREASES
The national minimum wage will rise by 3.5%, bringing it to $948.00 per week or $24.95 per hour. This change, approved by the Fair Work Commission, applies to the first full pay period starting on or after July 1. Minimum award wages will increase by the same percentage.
SUPERANNUATION & PENSIONS
- The superannuation guarantee will rise from 11.5% to 12%.
- The maximum super contribution base will decrease from $65,070 to $62,500.
- For the first time, the government’s paid parental leave scheme will include super contributions.
- Pension income and asset thresholds will increase by 2.4%, enabling pensioners to retain more assets and income without losing full pension eligibility.
- In Tasmania, RBF Life and Parliamentary Pensions will be indexed by 1.150% from July 1.
UNPAID SUPER CLAIMS
If you suspect unpaid super, use the ATO’s “Am I entitled to super?” tool. You can check your super fund contributions via ATO online services or contact your employer for details. If issues persist, report unpaid contributions using the ATO’s online form.
TAX CHANGES
Family Tax Benefit (FTB):
- FTB Part A will increase to:
- $227.36/fortnight for children under 13.
- $295.82/fortnight for children aged 13+.
- FTB Part B will rise to:
- $193.34/fortnight (children under 5).
- $134.96/fortnight (youngest child over 5).
Payroll Tax Adjustments:
- Victoria: Threshold increases to $1 million annually and $83,333 monthly.
- Northern Territory: Threshold increases to $2.5 million.
PAID PARENTAL LEAVE EXPANSION
From July 1, the length of government-funded paid parental leave increases from 20 to 22 weeks, with a goal of reaching 26 weeks by 2026. The updated scheme provides flexibility for parents to share leave or spread it over two years.
In NSW, a portable long service leave scheme will launch for community service workers, allowing them to accumulate long service leave across multiple employers.
COST-OF-LIVING RELIEF
- Centrelink payments will rise by 2.4% to help offset inflation.
- South Australia: 28-day student MetroCards will be capped at $10, reducing per-trip costs to around 25 cents.
- Victoria: The Victorian Default Offer for electricity will be set at $1675 annually.
- Tasmania: TasWater bills will increase by 3.5%, costing the average customer an extra $0.12/day.
SKILLED MIGRATION INCOME THRESHOLDS
The income thresholds for skilled visa applicants will increase by 4.6%:
- Core and Temporary Skilled Migration Threshold: $76,515 (up from $73,150)
- Specialist Skills Threshold: $141,210
These changes apply only to new applications from July 1 onward and will not affect current visa holders or applications lodged before that date.
In Summary:
These updates reflect broader efforts by federal and state governments to address economic pressures, improve workforce entitlements, and modernise tax and social support systems. While some Australians will benefit from increased support and higher wages, others may face new compliance requirements or cost adjustments.
