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All the major money changes coming from July 1, 2024

There are a range of tax, superannuation and government payment changes coming into effect from today.

July 1 money changes
Tax cuts, super increases and Centrelink payment boosts are among the money changes kicking in today. (Source: Getty/Yahoo Finance Australia)

The new the financial year is officially here and that means a ton of changes are kicking in for Aussies. From July 1, there are new rules that will affect almost everyone including individual taxpayers, families and retirees.

Some are major one-off changes, including the stage 3 tax cuts and $300 energy bill relief. Others happen each year, like Centrelink's regular indexation of payments.

Here’s an overview of the major changes and how they will affect your finances.

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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.

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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.

Do you have a story to share? Contact tamika.seeto@yahooinc.com

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.

People on Rent Assistant payments will also see a 10 per cent increase.

The minimum wage and award wages will increase by 3.75 per cent, following a decision by the Fair Work Commission. This 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.

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.

It's estimated the average Aussie will get an extra $340 added to their super each year.

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 subjected 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.

The $300 energy rebate for households will be automatically applied to bills after July 1. It will be paid in $75 instalments each quarter.

State-based electricity rebates will also begin kicking in, with Queensland households to get an extra $1,000 automatically credited to their bills and Western Australian households to get an extra $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.

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.

Income limits for paid parental leave will also increase with indexation.

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 above $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.

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.

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.

NBN prices are going up today thanks to wholesale price increases of between $2.22 and $2.52 a month.

The exact price hike will depend on your provider with Telstra, Optus, Aussie Broadband, Dodo, Superloop, iPrimus and Exetel among those making changes to their plans.

For example, Telstra is increasing its NBN 25 plan by $4 a month and NBN 50 plan by $5 a month. It's NBN 250 is actually decreasing by $5 a month and NBN 1000 by $20 a month.

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