All the money changes coming soon for every Aussie: 'Higher payments'
Big changes are kicking in for Aussies in the coming months that will have major impacts on your money. The end of the financial year is fast approaching, and with it comes a bunch of alterations to superannuation, tax, Centrelink and more.
From July 1, Aussies can look forward to higher superannuation payments, changes to the minimum wage, and increases to some Centrelink payments and thresholds. Other money changes, like removing the tax deductibility of tax debts, won't be as welcome on the hip pocket.
Here's what's changing.
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The super guarantee rate will increase from 11.5 per cent to 12 per cent for workers. This is the final legislated increase to compulsory super payments.
The change means your employer will put a higher percentage of your pay into your retirement savings.
The transfer balance cap, which limits the total amount of super that can be transferred into the retirement phase, will increase by $100,000 from $1.9 million to $2 million.
Other thresholds, like the $30,000 annual cap on concession tax-deductible contributions and the $120,000 cap on non-concessional contributions, will remain the same.
Superannuation will start being paid on the government's Parental Leave Pay.
This means parents getting the support will get an extra 12 per cent of their payment as a contribution to their super fund.
The amount of Parental Leave Pay available will also increase to 24 weeks, up from 22 weeks. The amount of leave will increase by two weeks until it reaches 26 weeks from July 2026.
The amount is shared between parents. From July 1, three weeks of leave will be reserved for the parent who is not using the majority of the leave.
Interest on overdue tax debts will no longer be tax-deductible.
The General Interest Charge (GIC) and Shortfall Interest Charge (SIC) will no longer be tax-deductible, which is expected to boost tax revenue by $500 million in 2026 and 2027.
The ATO applies the GIC when a tax debt hasn't been paid by the due date, including where a tax return has been lodged late.
The SIC applies when your tax return is amended and it results in a tax shortfall.
The Fair Work Commission reviews and adjusts the minimum wage each year, with changes coming into effect on the first full pay period on or after July 1.
Prime Minister Anthony Albanese has backed an 'economically sustainable real wage increase' for minimum and award wage earnings. However, the Labor government has not put a figure on its submissions to Fair Work.
The national minimum wage is currently $24.10 per hour, which works out to $915.90 per 38-hour week or $47,626.80 per year.
Family payments, including the Family Tax Benefit, Newborn Supplement and Multiple Birth Allowance will increase.
This is because of regular indexation, which happens on July 1 each year, with the increase not yet confirmed by the government.
Age Pension, Disability Support Pension and Carer Payment recipients will see increases to their income and asset thresholds, with the amounts also to be confirmed.
Thresholds for the Medicare Levy Surcharge will increase.
This is an extra tax you have to pay if you earn over a certain amount and don't have private health insurance.
Singles who earn over $101,000 and families who earn over $202,000 and don't have appropriate hospital insurance will now have to pay the surcharge, up from $97,000 and $194,000, respectively.
Lastly, the minimum income for HECS repayments is due to increase to $67,000, up from the current $54,435.
However, this change has not yet been legislated.
The change means Aussies would need to earn more than the new threshold before they start making repayments.Sign in to access your portfolio
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