The end of financial year is approaching.
While some only associate this period with tax returns and the odd sale purchase, it’s usually when we see key financial changes rolled out.
This year is no different — there are a few policies coming into effect that could have an impact on your hip pocket.
Here’s what’s changing.
Tax cuts
If you’re one of the 13.6 million Australians who pays tax, you’ll notice a bump in your pay cheque.
That’s because tax cuts, which were passed back in February, will come into effect.
You can see how much you’ll save under the changes by using the calculator below
Here are the new tax brackets at a glance:
- Earn up to $18,200 — pay no tax
- Pay a 16 per cent tax rate on each dollar earned between $18,201–$45,000
- Pay a 30 per cent tax rate on each dollar earned between $45,001–$135,000
- Pay a 37 per cent tax rate on each dollar earned between $135,001–$190,000
- Pay a 45 per cent tax rate on each dollar earned above $190,000
Because these changes will apply to taxable income you earn from July 1, they won’t affect your tax return this year.
Minimum wage increases
More than 20 per cent of Australian workers will benefit from an increase in minimum and award wages.
These are set to go up by 3.75 per cent to $24.10 an hour.
If you’re on the national minimum wage and work a 38-hour week, you’ll earn $913.91.
That’s an increase of about $33.
Social services payments
People on certain government payments will see a slight increase as July indexation takes effect.
This is because welfare payments are regularly adjusted to keep up with changes to indices like the Consumer Price Index.
In a statement released early in June, Social Services Minister Amanda Rishworth said there would be an increase to the following payments:
- Family Tax Benefit A and B
- Newborn Supplement
- Multiple Birth Allowance
- Stillborn Baby Payment
- Essential Medical Equipment Payment
She also flagged increases in income and asset thresholds for pensioners, among others.
People on Rent Assistance payments will also see a 10 per cent boost.
Superannuation payments
Your employer will be putting more into your nest egg this year as compulsory superannuation payments increase.
Minimum payments will rise 50 basis points to 11.5 per cent of your earnings.
If you want to invest more in your super, the maximum threshold for concessional contributions will also rise.
This is the amount you can invest each year without your contributions being subject to extra tax.
From July 1, 2024, the concessional contributions cap will be $30,000, up from $27,500.
Meanwhile, the non-concessional contributions cap — the maximum amount of after-tax contributions — will increase from $110,000 to $120,000.
Energy relief credits
A $300 energy rebate is one of a few measures in the federal government’s budget aimed at putting money back in your pocket.
But you won’t get it all at once.
The rebate, which is being credited to every Australian household’s power bills, will be applied quarterly.
So that will mean you’ll get $75 off each off your next four quarterly power bills.
This national measure is separate to state-specific rebates, such as Queensland’s $1,000 energy rebate.
Parental leave
There’s good news if you’re about to have a child: Parental Leave Pay will be extended by 10 days.
When you factor in weekends, that means it’s going from 20 weeks to 22 weeks.
This will apply if your child is born, or enters into your care, after July 1.
Because payments are made at the national minimum wage, they’ll also receive a small bump.