Australia's new financial year brings wage hikes, pension changes. Photo / Getty Images
Widespread changes to how Australians save and spend their money take effect July 1.
Australia’s state and federal governments typically use the new financial year as a starting point for a range of regulatory and legislative changes.
Among this year’s changes are an increase to the minimum wage, a lifting of income and asset thresholds for pensioners, and changes to skilled migration.
The New South Wales and Victorian governments will also crack down on tobacco with new licensing schemes.
See the full list of changes here:
– The minimum wage will increase by 3.5% from July 1. The Fair Work Commission has approved the increase in the national minimum award to A$948 ($1022) per week or A$24.95 ($26.92) per hour, which will apply from the first full pay period starting on or after July 1. The minimum award wages will increase by the same percentage.
– Thresholds for the income and asset tests for the age pension will lift by 2.4%. The value of assets pensioners can own while receiving a full pension, and the weekly income they can take from work and their super, will also increase.
– A number of changes to superannuation will come into effect from July 1. The superannuation guarantee rate will increase to 12%. The new percentage will be applied to all salary and wages paid to eligible workers on or after July 1 and will mean employers will have to pay a minimum of 12% to an employee’s superannuation fund. The maximum super contribution base will meanwhile decrease from A$65,070 to A$62,500.
– From July 1, Services Australia will lift the number of Parental Leave Pay days from 110 to 120 for children born from that day. Parents, including of adoptive children, will be able to claim up to three months before the date they expect the child to “enter their care”.
– Skilled visa income thresholds will be increased by 4.6% from July 1, when the annual indexation takes effect. The Core Skills Income Threshold and Temporary Skilled Migration Income Threshold will increase from A$73,150 to A$76,515 while the Specialist Skills Income Threshold will increase to A$141,210.
– The sorts of products smokers can purchase is set to change from July 1. In the new financial year, a raft of changes to tobacco sales will come into full effect, including the banning of flavoured or menthol cigarettes, the removal of names such as “smooth” and “gold”, packets will be standardised at 20 cigarettes, as well as the rolling out of consistent shapes and sizes, and new health information. Many of the changes have already been implemented.
– From July 1, NSW will finally have a tobacco licensing scheme. Retail businesses selling tobacco and non-tobacco smoking products will be required to notify NSW Health, with stiff penalties for any breaches.
– A new Community Services Industry portable long service leave scheme will be introduced on July 1. It will give workers in the community services industry, who often work with multiple employers, access to long service leave after seven years of service to the industry with one or more employers.
– Improved protections for renters will come into effect from July 1, including making it easier for accessibility infrastructure to be installed, providing evidence that an animal is an assistance animal, and obtaining approval for minor renovations.
– A raft of changes to strata in NSW will come into effect from July 1. They include new strata committee duties, protection for owners in strata from unfair terms, increased penalties for developers, and other improvements to strata laws.
– Community land law changes will also take effect from July 1, including ensuring that sustainability is discussed during annual general meetings, that requests to change association property for accessibility infrastructure only needs a majority vote at an association meeting, and that bylaws don’t ban sustainability infrastructure based on appearance – except if it is a heritage property.
– New rules requiring motorists to slow down to 40km when passing workers on the roadside, or stationary or slow-moving vehicles (travelling at 10km/h or less) displaying flashing lights, will be introduced from July 1. Previously applicable to emergency and law enforcement vehicles, motorists will now also have to slow down for other vehicles, including accident towing trucks, roadside assistance, and incident response vehicles.
– From July 1, tobacco retailers and wholesalers will be required to apply for a licence to sell tobacco products. Tough penalties will apply for those found contravening the new regulations, including a fine of A$829,878 for anyone operating without a licence or caught possessing or selling illicit tobacco. For an individual, it is A$165,975 (or five years’ prison).
– A planning permit will not automatically be required for a venue with a liquor licence in Victoria beginning July 1.
– The payroll tax-free threshold will increase from July 1 to will be lifted from A$900,000 to A$1,000,000 for annual returns, and from A$75,000 to A$83,333 for monthly returns.
– The Victorian Default Offer, a set electricity price, will be set at A$1675 from July 1.
– Annual rent and eligibility checks for all social housing tenants will be reintroduced from July 1. The checks will confirm if tenants still meet income thresholds.
– People convicted of a crime will pay more from July 1, when the Queensland Government indexes the rate of a penalty unit. From that date, a single penalty unit will rise from A$161.3 to A$166.9 for most offences covered under state legislation, as well local law penalties.
– Reforms to WA’s public sector will begin to take effect from July 1. They include the transition of the Department of Jobs, Tourism, Science and Innovation to the Department of Energy and Economic Diversification and a new Office of Defence Industries. A new Department of Mines, Petroleum and Exploration will administer and drive the future development of the resources industry.
– Rebates will be made available for residential solar batteries of up to A$1300 for Synergy customers and up to A$3800 for Horizon Power customers from July 1. The reforms are aimed at allowing more households access to batteries and rebates.
– The SA Government will implement cost of living measures from July 1, including capping the price of a 28-day student pass on the MetroCard to A$10 – down from A$28.60. The change means a trip for a student on public transport will cost about 25c.
– RBF Life Pensions, Interim Invalidity Pensions, and Parliamentary Pensions will be indexed in line with reflation and a Consumer Price Index of 1.150% on July 1.
– TasWater, Tasmania’s water and sewage utility, will increase its prices by 3.5% from July 1. The average residential customer will see an increase of about 12.04 cents per day.
– From July 1, the electoral reforms will establish a new scheme for disclosing political donations and electoral expenditure in parliamentary elections and administering public funding in relation to House of Assembly elections in Tasmania.
– The payroll tax-free threshold will increase to A$2.5 million on July 1, with maximum annual deductions also increased to A$2.5m.
– On July 1, the ACT Government will raise the minimum age of criminal responsibility from 10 to 14.
– A short-term rental accommodation levy will be introduced in the ACT on July 1. It will apply to bookings of no more than 28 days.
– The ACT Public Service will be restructured from July 1, including directorate mergers, function transfers and the creation of the new Digital Canberra directorate.