On July 1, significant changes were implemented across various areas in Australia, particularly benefiting birthing parents and primary caregivers. A notable enhancement to the government-funded Paid Parental Leave scheme now allows earnings under Services Australia’s program to accrue superannuation for the first time. This change is aimed at addressing the notable superannuation disparities between female and male workers, as many birthing parents are women who typically retire with lower super balances. Additionally, the Albanese government has increased paid leave from 22 weeks to 24 weeks for parents of children born or adopted from this date, with plans to extend it to 26 weeks by 2026. This step is part of a broader initiative to better support new parents by allowing claims to begin up to three months before the expected date of care.
In another significant move, over 2.6 million Australians earning minimum award wages can expect a pay increase of 3.5 percent, raising the minimum weekly wage from $915.90 to $948, which translates to $24.95 per hour for a standard 38-hour workweek. This increase comes as part of the Fair Work Commission’s decision to adjust minimum wage rates to help counteract the rising cost of living. Similarly, immigrants aiming to work in the skilled visa category will see their salary thresholds adjusted by 4.6 percent, with new benchmarks that do not affect previously lodged visa applications, ensuring that future applicants benefit from these increases.
To further aid citizens during challenging economic times, certain Centrelink payments will rise by 2.4 percent, positively impacting over 2.4 million Australian social security recipients. Notable adjustments include the Family Tax Benefit (FTB) Part A, which will now provide a maximum payment of $227.36 for children under 13, and $295.82 for older children. Concurrently, the maximum rate of FTB Part B will adjust to $193.34 for families with younger children. These increases are part of comprehensive efforts to alleviate financial pressure from the recovering economy.
In terms of educational support, the South Australian government is introducing cost-of-living relief for students, including drastically reduced transport costs. Beginning on July 1, the price of a 28-day student MetroCard will drop to $10, down from nearly $29, benefiting students statewide. Additionally, tertiary students engaged in mandatory placements within select degree programs will receive a stipend of $331.65, representing a significant shift from previous unpaid arrangements. Further, proposed legislation aiming to reduce HECS debt by 20 percent is expected to be passed shortly, marking a favorable change for students with outstanding debts.
Business owners are also benefitting from changes in payroll tax thresholds. For instance, Victoria has increased its annual payroll tax-free threshold to $1 million, alongside adjusted thresholds in the Northern Territory, which will facilitate business growth and operational capacity. These tax changes are designed to enhance the local economic landscape by reducing tax burdens on smaller businesses, providing an environment conducive to growth, and employment generation.
Effective from July 1, several additional cost changes are affecting everyday Australians. Electricity prices are set to rise significantly, with increases in various states impacting household budgets as much as 9.7 percent in some areas. Moreover, Australia Post has announced adjustments in postal service rates, with increases planned post-July 17. Various fines are adjusting upward as well, with Queensland’s government setting new penalty unit rates higher than previously assessed. Finally, the Australian Taxation Office’s updated policies now exclude the tax-deductibility of certain fees for late tax payments, urging timely compliance. These measures reflect ongoing efforts to adjust to economic realities while providing enhanced support to families, individuals, and businesses throughout Australia.
