Yahoo Finance All the major money changes coming from July 1, 2024
There are a range of tax, superannuation and government payment changes coming into effect.
The end of the financial year is fast approaching and that means a ton of new laws are about to kick in for Aussies. From July 1, new rules will affect almost everyone including individual taxpayers, families and retirees.
Here’s an overview of the major changes rolling out in the coming weeks. Plus, how they will affect your finances, including your taxes, superannuation and pay.
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Tax
All Aussies will see a change to their weekly pay when the stage 3 tax cuts, which were the centrepiece of the government’s federal budget, take effect.
The changes will:
Cut the 19 per cent tax rate to 16 per cent for incomes between $18,200 and $45,000
Cut the 32.5 per cent tax rate to 30 per cent for incomes between $45,000 and $135,000
Retain the 37 per cent tax rate but increase the threshold from $120,000 to $135,000
Retain the 45 per cent tax rate but increase the threshold from $180,000 to $190,000
You don’t need to do anything to get the tax cut. Employers will automatically adjust the amount of tax they take out of your pay. You can see how much you’ll save here.
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Centrelink
People on family payments including the Family Tax Benefit, Newborn Supplement and Multiple Birth Allowance will see increases in their payments as part of regular indexation.
Age pension, disability support pension and carer payment recipients will see increases in their income and asset thresholds. That means they will be able to have more income and assets before their payments are affected.
Deeming thresholds will also be indexed. Deeming rates will remain frozen for another year, with a lower bracket of 0.25 per cent and a higher bracket of 2.25 per cent.
Income limits for paid parental leave will also increase with indexation.
Wages
The minimum wage and award wages will increase by 3.75 per cent, the Fair Work Commission announced today. The decision will impact about 2.6 million workers.
The minimum wage will increase to $24.10 per hour or $915.90 per week, based on a 38-hour working week.
Superannuation
The super guarantee rate will increase from 11 per cent to 11.5 per cent. This means your employer will be putting a higher percentage of your pay into your retirement nest egg.
The general concessional contributions cap will increase from $27,500 to $30,000 for all individuals. This is the maximum amount of before-tax contributions you can contribute to your super each year without contributions being subject to extra tax.
The non-concessional contributions cap, which is the maximum amount of after-tax contributions you can make without being hit with extra tax, will increase from $110,000 to $120,000.
Parental leave pay
Parental Leave Pay will be expanded to 22 weeks, up from 20 weeks. Payments are made at the national minimum wage. The amount of leave parents can claim will increase by two weeks until it reaches 26 weeks from July 2026.
This amount is shared between parents. Currently, two weeks of leave are set aside for the second parent who is not using the majority of leave.
Medicare
Thresholds for the Medicare Levy Surcharge (MLS) will be increasing. This is a penalty you have to pay if you earn over a certain amount and don't have private health insurance. It is up to 1.5 per cent of your income.
Singles who earn over $97,000 and families who earn $194,000 and don't have to pay health insurance will now have to pay the surcharge, up from $93,000 and $186,000 respectively.
Health insurance
Thresholds for the private health insurance rebate will also be increasing, with savings of up to $770 available. This is a rebate from the government to help cover the cost of health insurance premiums.
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 then decreases as you earn more. Singles will be able to earn up to $151,000 and families up to $302,000 to still get a rebate, up from $144,000 and $288,000.
Electricity rebates
The $300 energy rebate for households will be automatically applied to bills after July 1. It will be paid in $75 installments each quarter.
State-based electricity rebates will also begin kicking in, with Queensland households to get $1,000 automatically credited to their bills and Western Australian households to get $400 credited to their bills from July.
Power prices changes will also kick in, with the Australian Energy Regulator revealing that most households and small business customers on standard retail plans will experience price reductions.
Households could see price reductions between 1 and 6 per cent, depending on their region. Meanwhile, Victorian residential customers will see an average reduction of 6 per cent.
Passports
Aussie travellers will also have more options to fast-track their passports. As announced in the budget, Aussies will be able to pay $100 to have their application processed within five business days. This is in addition to the existing $252 fast-track option, which takes two days.
Passport prices will also be going up, with the cost of getting a 10-year passport increasing from $346 to $397.90 - a price hike of about $50.
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