Latest news with #ParliamentaryPensions
Sydney Morning Herald
13 hours ago
- Business
- Sydney Morning Herald
All the changes coming on July 1, and what they mean for your wallet
The headline is that former asset-tested part-pensioner couples can get a $34.50 per fortnight pension increase, with the increase being $22.50 per fortnight for singles. Read the full story and see all the changes here. In Tasmania, meanwhile, those who fall under RBF Life Pensions, Interim Invalidity Pensions and Parliamentary Pensions will be indexed at 1.150 per cent, in line with the Consumer Price Index, on July 1. The most recent January indexation rate was 1.237 per cent. New parents with due dates from July 1 In a positive step for birthing parents and primary caregivers, most of whom are women who will retire with significantly less super than their male peers, earnings under Services Australia's Paid Parental Leave will accrue super for the first time from July 1. As part of the Albanese's government's improvement of the government-funded scheme, parents of children born or adopted from July 1 can also get an extra 10 days of paid leave, increasing the 22 weeks' paid leave to 24 weeks. From July 2026, that's expected to increase to 26 weeks, which new parents can claim up to three months before the child is expected to enter their care. Workers on the minimum wage Those under minimum award wages – estimated to be more than 2.6 million Australians – will see a pay increase of 3.5 per cent from the first full pay period either on or after July 1. Loading The Fair Work Commission has approved an increase to $948 per week, which is $24.95 per hour in a 38-hour week. This is up from last year's $915.90, which saw those working 38-hour weeks under minimum award wages paid $24.10 per hour. Workers paid under skilled visa income thresholds Also seeing a pay increase are those looking to be remunerated under skilled visas, with thresholds increasing by 4.6 per cent when annual indexation comes into effect. The Specialist Skills Income Threshold will increase from $135,000 to $141,210 for applications lodged from July 1, with the Core Skills Income Threshold and Temporary Skilled Migration Income Threshold increasing from $73,150 to $76,515. Applications lodged on or before June 30 will not have the new thresholds applied to them, and the new thresholds also won't affect existing skilled visa holders. People who receive Centrelink payments Some Centrelink payments will increase by 2.4 per cent on July 1 in a bid to help ease the rising cost of living for the more than 2.4 million recipients of social security payments across the country. This means the Family Tax Benefit (FTB) Part A maximum payment for children under 13 will increase to $227.36 per fortnight, with children 13 and over increasing to $295.82 per fortnight. FTB Part B's maximum rate, meanwhile, will increase to $193.34, and families with the youngest child aged five or over will see an increased rate of $134.96 per fortnight. Students who use public transport … in one state only July 1 means the South Australian government's cost-of-living measures come into effect, seeing the 28-day student MetroCard pass capped at a maximum price of $10. That's down from $28.60, meaning the average cost per trip will now be 25 cents. For students across the country, the Albanese government's 'game-changing' 20 per cent cut to outstanding HECS debt is expected to be legislated on July 22 when parliament returns. Once the legislation is passed, the Australian Taxation Office (ATO) will automatically apply the debt reduction, calculating it based on what the amount was on June 1, 2025, and adjust any indexation applied to the outstanding debt retrospectively. Businesses subject to payroll tax … in select states and territories If you're a business owner in Victoria, then you're in luck: from July 1, the payroll tax-free threshold will increase by $100,000 to $1 million for annual returns, and by $8333 to $83,333 for monthly returns. In the Northern Territory, meanwhile, the payroll tax-free threshold and maximum annual deduction increases from $1.5 million to $2.5 million on July 1, with the new annual deduction dropping to $1 for every $2 of taxable wages above the tax-free threshold. Previously, it was $1 for every $4. Households looking to install solar batteries Only one in 40 Australian households have installed solar batteries, a figure the Albanese government pledged to increase with rebates ahead of the May 3 election. From July 1, it's not just Australian households that will be eligible for an upfront 30 per cent discount on battery purchase and installation costs, but businesses and community organisations as well. This could shave $4000 off overall costs per new home battery with rooftop solar panels, though those systems would take a decade to pay for themselves. Read the full story here. Anyone in the superannuation accumulation phase … under a certain threshold Australians who are growing their superannuation balances through mandatory employer contributions, rejoice! From July 1, the general super guarantee rate increases to 12 per cent, up 0.5 per cent from last year. For those who live and work on Norfolk Island, that rate is increasing by one per cent from FY2024-25 to 10 per cent from July 1. The maximum super contribution base is decreasing by $2570 to $62,500, however, and those who have a super balance of more than $3 million may not be as happy come July 1. LOSERS Taxpayers with superannuation balances of more than $3 million July 1 will see one of Labor's key policies – and a test for Treasurer Jim Chalmers – officially come into effect, with roughly one in 200 Australian taxpayers with superannuation balances of more than $3 million facing an additional 15 per cent tax on any investment returns (including interest, dividends or capital gains) above this figure. For Australian taxpayers who have a superannuation balance of less than $3 million, the discounted taxation rate of 15 per cent on earnings from super in the accumulation phase will not change. Loading If you are someone with a $3.5 million super balance, for example, you will continue to be taxed the discounted 15 per cent rate on everything earned on the first $3 million of your super balance from July 1. It's the investment returns on the additional $500,000 that will be taxed at 30 per cent from that date. Read the full story and see all the changes here. Greater Sydney households cop wheelie bin fee hikes If the debate for the best Australian city was neck and neck, the new cost of picking up household rubbish may just put Sydney second-best. From July 1, residential domestic waste service fees will rise for 31 of Greater Sydney's 34 local councils, with some households expected to fork out more than four times above the current rate of inflation for standard bin collection services. Lane Cove Council's increase is the largest of any Sydney Council, up $76.75 to an annual fee of $637.76. Residents under Georges River Council's jurisdiction, however, will actually pay $13 less than the FY2024-25 fee. Read the full story and see the full rates list here. In other waste management news, Tasmania's water and sewage utilities provider, TasWater, is increasing its prices by 3.5 per cent, with the average Tasmanian residential customer expected to fork out an extra 12 cents per day. Hundreds of thousands of households with power bills In news that would surely elicit a quirk of the brow from Liberal Senator James Paterson, who spent weeks in the lead-up to the federal election crowing about Prime Minister Anthony Albanese's failure to deliver his promised $275 cut to residential power bills, hundreds of thousands of Australian households will pay more for electricity from July 1. Loading In May, the Australian Energy Regulator revealed its most recent round of annual price setting, increasing the maximum prices retailers can charge customers on standing power plans, from July 1, by up to 9.7 per cent in some hard-hit NSW areas and up to five per cent in certain parts of Victoria. From July 1, the average annual retail price for power in Victoria will be $1675, up $20 from the $1655 price set for the previous 12 months. Prices in NSW, meanwhile, vary between the state's three electricity distribution networks, with Ausgrid's default price increasing by $155, Endeavour Energy up $188 and Essential Energy rising by $228. Read the full story here. Snail mail enthusiasts and Australia Post customers Australians who want to send letters overseas face a weighted average increase of five per cent from July 1, Australia Post says, with several retail products and services – including mail redirection and return-paid parcels – either increasing in price or discontinuing. Domestic Parcel Post prices are increasing by a weighted average of 1.95 per cent, with Express Post costs also increasing by a weighted average of 1.52 per cent. Separately, on June 23, the Australian Competition & Consumer Commission (ACCC) said it did not object to Australia Post's proposed 13.3 per cent stamp price increase, which would see the price of ordinary letters, for example, increase from $1.50 to $1.70. Unless Minister for Communications Anika Wells disapproves the proposal within 30 days of receipt, it's expected the notified letter prices will be increased by Australia Post from July 17. Criminals in Queensland Penalty unit rates are being indexed by the Queensland government from July 1, meaning people convicted of a crime will pay $5.60 more per penalty unit for most offences under state legislation. This means someone who is fined for driving without a licence – one of the most common criminal traffic offences in Queensland – facing the fine of up to 40 penalty units could pay $6676 instead of what would have been $6452 in the previous 12 months. The Commonwealth penalty unit, meanwhile, was increased from $313 to $330 in 2024. People who pay their tax late and don't know about this subtle change The ATO is officially cracking down on latecomers, closing the door on some tax deductions to encourage prompt tax payments and compensate the community for the cost of delays. Loading According to Mark Chapman, HR Block's director of tax communications, any interest the ATO charges for overdue or unpaid tax debts, or other fees, will no longer be tax-deductible. Currently, the ATO's general interest charge is 11.17 per cent, compounding daily. Read the full story here. With David Barwell, Mike Foley, Millie Muroi, Dominic Powell, Noel Whittaker.
The Age
13 hours ago
- Business
- The Age
All the changes coming on July 1, and what they mean for your wallet
The headline is that former asset-tested part-pensioner couples can get a $34.50 per fortnight pension increase, with the increase being $22.50 per fortnight for singles. Read the full story and see all the changes here. In Tasmania, meanwhile, those who fall under RBF Life Pensions, Interim Invalidity Pensions and Parliamentary Pensions will be indexed at 1.150 per cent, in line with the Consumer Price Index, on July 1. The most recent January indexation rate was 1.237 per cent. New parents with due dates from July 1 In a positive step for birthing parents and primary caregivers, most of whom are women who will retire with significantly less super than their male peers, earnings under Services Australia's Paid Parental Leave will accrue super for the first time from July 1. As part of the Albanese's government's improvement of the government-funded scheme, parents of children born or adopted from July 1 can also get an extra 10 days of paid leave, increasing the 22 weeks' paid leave to 24 weeks. From July 2026, that's expected to increase to 26 weeks, which new parents can claim up to three months before the child is expected to enter their care. Workers on the minimum wage Those under minimum award wages – estimated to be more than 2.6 million Australians – will see a pay increase of 3.5 per cent from the first full pay period either on or after July 1. Loading The Fair Work Commission has approved an increase to $948 per week, which is $24.95 per hour in a 38-hour week. This is up from last year's $915.90, which saw those working 38-hour weeks under minimum award wages paid $24.10 per hour. Workers paid under skilled visa income thresholds Also seeing a pay increase are those looking to be remunerated under skilled visas, with thresholds increasing by 4.6 per cent when annual indexation comes into effect. The Specialist Skills Income Threshold will increase from $135,000 to $141,210 for applications lodged from July 1, with the Core Skills Income Threshold and Temporary Skilled Migration Income Threshold increasing from $73,150 to $76,515. Applications lodged on or before June 30 will not have the new thresholds applied to them, and the new thresholds also won't affect existing skilled visa holders. People who receive Centrelink payments Some Centrelink payments will increase by 2.4 per cent on July 1 in a bid to help ease the rising cost of living for the more than 2.4 million recipients of social security payments across the country. This means the Family Tax Benefit (FTB) Part A maximum payment for children under 13 will increase to $227.36 per fortnight, with children 13 and over increasing to $295.82 per fortnight. FTB Part B's maximum rate, meanwhile, will increase to $193.34, and families with the youngest child aged five or over will see an increased rate of $134.96 per fortnight. Students who use public transport … in one state only July 1 means the South Australian government's cost-of-living measures come into effect, seeing the 28-day student MetroCard pass capped at a maximum price of $10. That's down from $28.60, meaning the average cost per trip will now be 25 cents. For students across the country, the Albanese government's 'game-changing' 20 per cent cut to outstanding HECS debt is expected to be legislated on July 22 when parliament returns. Once the legislation is passed, the Australian Taxation Office (ATO) will automatically apply the debt reduction, calculating it based on what the amount was on June 1, 2025, and adjust any indexation applied to the outstanding debt retrospectively. Businesses subject to payroll tax … in select states and territories If you're a business owner in Victoria, then you're in luck: from July 1, the payroll tax-free threshold will increase by $100,000 to $1 million for annual returns, and by $8333 to $83,333 for monthly returns. In the Northern Territory, meanwhile, the payroll tax-free threshold and maximum annual deduction increases from $1.5 million to $2.5 million on July 1, with the new annual deduction dropping to $1 for every $2 of taxable wages above the tax-free threshold. Previously, it was $1 for every $4. Households looking to install solar batteries Only one in 40 Australian households have installed solar batteries, a figure the Albanese government pledged to increase with rebates ahead of the May 3 election. From July 1, it's not just Australian households that will be eligible for an upfront 30 per cent discount on battery purchase and installation costs, but businesses and community organisations as well. This could shave $4000 off overall costs per new home battery with rooftop solar panels, though those systems would take a decade to pay for themselves. Read the full story here. Anyone in the superannuation accumulation phase … under a certain threshold Australians who are growing their superannuation balances through mandatory employer contributions, rejoice! From July 1, the general super guarantee rate increases to 12 per cent, up 0.5 per cent from last year. For those who live and work on Norfolk Island, that rate is increasing by one per cent from FY2024-25 to 10 per cent from July 1. The maximum super contribution base is decreasing by $2570 to $62,500, however, and those who have a super balance of more than $3 million may not be as happy come July 1. LOSERS Taxpayers with superannuation balances of more than $3 million July 1 will see one of Labor's key policies – and a test for Treasurer Jim Chalmers – officially come into effect, with roughly one in 200 Australian taxpayers with superannuation balances of more than $3 million facing an additional 15 per cent tax on any investment returns (including interest, dividends or capital gains) above this figure. For Australian taxpayers who have a superannuation balance of less than $3 million, the discounted taxation rate of 15 per cent on earnings from super in the accumulation phase will not change. Loading If you are someone with a $3.5 million super balance, for example, you will continue to be taxed the discounted 15 per cent rate on everything earned on the first $3 million of your super balance from July 1. It's the investment returns on the additional $500,000 that will be taxed at 30 per cent from that date. Read the full story and see all the changes here. Greater Sydney households cop wheelie bin fee hikes If the debate for the best Australian city was neck and neck, the new cost of picking up household rubbish may just put Sydney second-best. From July 1, residential domestic waste service fees will rise for 31 of Greater Sydney's 34 local councils, with some households expected to fork out more than four times above the current rate of inflation for standard bin collection services. Lane Cove Council's increase is the largest of any Sydney Council, up $76.75 to an annual fee of $637.76. Residents under Georges River Council's jurisdiction, however, will actually pay $13 less than the FY2024-25 fee. Read the full story and see the full rates list here. In other waste management news, Tasmania's water and sewage utilities provider, TasWater, is increasing its prices by 3.5 per cent, with the average Tasmanian residential customer expected to fork out an extra 12 cents per day. Hundreds of thousands of households with power bills In news that would surely elicit a quirk of the brow from Liberal Senator James Paterson, who spent weeks in the lead-up to the federal election crowing about Prime Minister Anthony Albanese's failure to deliver his promised $275 cut to residential power bills, hundreds of thousands of Australian households will pay more for electricity from July 1. Loading In May, the Australian Energy Regulator revealed its most recent round of annual price setting, increasing the maximum prices retailers can charge customers on standing power plans, from July 1, by up to 9.7 per cent in some hard-hit NSW areas and up to five per cent in certain parts of Victoria. From July 1, the average annual retail price for power in Victoria will be $1675, up $20 from the $1655 price set for the previous 12 months. Prices in NSW, meanwhile, vary between the state's three electricity distribution networks, with Ausgrid's default price increasing by $155, Endeavour Energy up $188 and Essential Energy rising by $228. Read the full story here. Snail mail enthusiasts and Australia Post customers Australians who want to send letters overseas face a weighted average increase of five per cent from July 1, Australia Post says, with several retail products and services – including mail redirection and return-paid parcels – either increasing in price or discontinuing. Domestic Parcel Post prices are increasing by a weighted average of 1.95 per cent, with Express Post costs also increasing by a weighted average of 1.52 per cent. Separately, on June 23, the Australian Competition & Consumer Commission (ACCC) said it did not object to Australia Post's proposed 13.3 per cent stamp price increase, which would see the price of ordinary letters, for example, increase from $1.50 to $1.70. Unless Minister for Communications Anika Wells disapproves the proposal within 30 days of receipt, it's expected the notified letter prices will be increased by Australia Post from July 17. Criminals in Queensland Penalty unit rates are being indexed by the Queensland government from July 1, meaning people convicted of a crime will pay $5.60 more per penalty unit for most offences under state legislation. This means someone who is fined for driving without a licence – one of the most common criminal traffic offences in Queensland – facing the fine of up to 40 penalty units could pay $6676 instead of what would have been $6452 in the previous 12 months. The Commonwealth penalty unit, meanwhile, was increased from $313 to $330 in 2024. People who pay their tax late and don't know about this subtle change The ATO is officially cracking down on latecomers, closing the door on some tax deductions to encourage prompt tax payments and compensate the community for the cost of delays. Loading According to Mark Chapman, HR Block's director of tax communications, any interest the ATO charges for overdue or unpaid tax debts, or other fees, will no longer be tax-deductible. Currently, the ATO's general interest charge is 11.17 per cent, compounding daily. Read the full story here. With David Barwell, Mike Foley, Millie Muroi, Dominic Powell, Noel Whittaker.
