Yahoo Finance Tax 2023: All the law changes coming July 1
There are a range of tax, superannuation and other changes coming into effect.
The end of the financial year is fast approaching, which means there are new laws about to kick in.
Here’s an overview of the tax, super and other major changes coming into effect from July 1.
Also read: Tax refunds to shrink: Here’s why and what to do about it
Also read: All the dates you need to know to avoid $1,375 fine
Tax
There are no changes to personal income tax rates and thresholds in the upcoming financial year.
It’s worth noting that the low and middle income tax offset (LMITO) is no longer available in the current 2022-23 financial year, and will not be available in the future year either. The legislated stage three tax cuts are due to come into effect next year from July 1, 2024.
The income threshold for the Medicare levy surcharge will also be increased for those without private health insurance.
From July 1, the income threshold for singles will increase from $90,000 to $93,000 before the tax applies, while for families it will increase from $180,000 to $186,000.
Superannuation
The super guarantee rate will increase from 10.5 per cent to 11 per cent. This means your employer will be putting a higher percentage of your pay into your retirement nest egg.
The guarantee will keep increasing for the next two years by 0.5 per cent until it reaches 12 per cent from July 1, 2025.
For retirees, the temporary reduction on minimum super drawdown rates will end. The government previously lowered the rates by 50 per cent during the pandemic.
Minimum wage
The minimum wage will be increased to $882.80 per week, or $23.23 per hour, following a decision by the Fair Work Commission. Award workers will get a 5.75 per cent pay increase.
Parental leave
New parents will be able to access 20 weeks of paid parental leave, with partnered couples able to split the leave between them.
Currently, parents are eligible for 18 weeks of paid parental leave and two weeks of secondary carer leave, both paid at the minimum wage.
Child care
From July 10, families earning less than $530,000 will get access to an increased childcare subsidy. The maximum subsidy amount will also increase from 85 per cent to 90 per cent for families.
Property
The eligibility criteria for the government’s Home Guarantee Scheme - including the First Home Guarantee, Regional First Home Guarantee and Family Home Guarantee - will be expanded.
Friends, siblings and other family members will be able to jointly apply for the First Home Guarantee and Regional First Home Guarantee. Legal guardians of children will also be eligible for the Family Home Guarantee.
The guarantees will also be available to borrowers who are permanent residents, as well as non-first-home buyers who haven’t owned a property in Australia in the past 10 years.
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