Yahoo News 1 July changes: tax cuts, Centrelink indexation and everything else coming for 2024-25
The 2024-25 financial year is nigh. Parents, federal politicians and (most) taxpayers are among those who will benefit from regulatory changes that kick in 1 July.
Here’s everything you need to know about the changes.
Stage-three tax cuts
All Australian taxpayers get a tax cut. Low and middle income-earners in the bottom two brackets get a cut from tax rates of 19% and 32.5% to 16% and 30% respectively. The 30% tax bracket will cover those earning up to $135,000 – previously $120,000. The second-highest tax bracket – at 37% – will include income up to $190,000, a $10,000 increase.
Minimum wage increases
The minimum and award wages will increase by 3.75%. It means that those on minimum wage will earn $24.10 per hour (previously $23.23), or $915.90 per week if they work full time.
Superannuation increase
The minimum amount employers must contribute to their employees’ super has risen by 0.5% – from 11% to 11.5%. The before and after tax contribution caps have also increased slightly – they are $30,000 and $120,000 respectively, up from $27,500 and $110,000 in 2023-24.
Paid parental leave
Parents will get 10 more days a year of paid parental leave, with parents now eligible for 110 days a year. The rate of paid parental leave will also increase, in line with the minimum wage, to $915.91 a week.
Vapes banned
It will be illegal for retailers to sell vapes or vape-related products until 1 October, when over-the-counter vapes will be sold at pharmacies – though the exact details are still being ironed out – after a Labor struck a deal with the Greens this week.
Politicians get a pay rise
Federal politicians will receive a pay rise of 3.5%. It means that for the first time, the prime minister’s salary will surpass $600,000, with Anthony Albanese earning $607,471 a year.
Centrelink
Recipients of the age pension, a disability support pension and carer payments will be able to earn more before their payments are reduced. Singles can now earn $212 a fortnight (previously $204) and couples can earn $372 (previously $360). About 1.3m households receiving the family tax benefit and other payments including the newborn supplement and multiple birth allowance will receive higher benefits due to indexation. There will also be increases to multiple birth allowance, newborn supplement, stillborn baby payment and essential medical equipment payments.
NSW night economy reforms
Interstate digital drivers licenses will be recognised in NSW as an evidence of age document, as part of a broader suite of reforms aimed at improving nightlife and the state’s music and cultural sector. Other changes include streamlined processes for liquor license applications and simpler requirements for former alcohol licensees to re-enter the industry.
Passports
It will become more expensive to get a passport, with the cost of adult passports rising from $325 to $374. It will be easier (but also more expensive) to get one in a hurry, with the new Fast Track passport processing service launching 1 July. It will ensure your passport application is processed within five days, which will set you back $100.
Temporary graduate visas
The maximum age to apply for some temporary higher education visas has been reduced from 50 to 35, but Hong Kong and British national overseas passport holders under 50 will still be eligible.
International graduates with temporary visas who have degrees in areas of skill shortages will no longer have their visas extended by two years.
Energy Rebate
All Australian households will receive $300 in energy bill credit, while eligible small businesses will get $325.
Ban on engineered stone
It will be illegal to work with engineered stone – which is 90% crushed stone bound together with resin – commonly used in kitchen and bathroom bench tops. Australia is the first country to ban engineered stone after silicosis cases rose among those involved in its cutting and handling.
Queensland truth-telling and healing inquiry
Queensland’s Truth-telling and Healing Inquiry – which will platform First Nations’ voices and investigate the history of colonisation in Queensland – will begin 1 July. The inquiry is part of the Queensland government’s path to a treaty with First Nations Queenslanders.
• This article was amended on 30 June 2024. A previous version incorrectly suggested only taxpayers earning up to $190,000 received a tax cut in the government’s stage-three reforms. It also incorrectly stated that British passport holders were exempt from the age limit on some study visas.
