Starting next week, significant changes will take effect across Australia as the new financial year begins on July 1. These updates from both state and federal governments aim to ease cost-of-living pressures on Australians.
The National Minimum Wage is set to rise by 3.5%, increasing from $24.10 to $24.95 per hour, which translates to an extra $35 per week for workers. This pay increase will benefit approximately 2.9 million Australians on low and award wages. Alongside this, Centrelink payments will see a 2.4% rise, positively impacting around 2.4 million recipients.
Additionally, the mandatory superannuation contribution from employers will increase from 11.5% to 12%. New regulations will also apply to paid parental leave, which will extend from 20 weeks to 24 weeks, allowing parents more time to bond with their newborns.
In a move to support students, the government plans to reduce student loan debts by 20% and raise the income threshold for repayments to $67,000, subject to legislative approval. Nursing, midwifery, teaching, and social work students will receive weekly Commonwealth Prac Payments of $319.50 starting July 1. Furthermore, new apprentices in the construction sector can look forward to a $10,000 incentive on top of their wages.
Households can expect further financial relief, as an additional $150 will be provided for energy bills, a benefit that will also extend to around one million small businesses. In conjunction with this, the government aims to support households by covering about 30% of the costs associated with installing solar battery systems, aiding efforts to manage energy expenses.
Changes will also be felt by those receiving the age pension, with adjustments in income and asset thresholds to better reflect inflation. The asset cut-off for couples will drop from $481,500 to $470,000, while the threshold for singles will decrease from $321,500 to $314,000. As a result, eligible couples will see their pension payments increase by $34.50 per fortnight, and singles will receive an extra $22.50.
On the disability front, the National Disability Insurance Scheme (NDIS) is set to implement several reforms, including a reduction in maximum rates charged by providers and the elimination of establishment fees for participants. Additionally, disability support workers will benefit from a 3.95% pay increase effective July 1.
Overall, these upcoming changes promise to provide financial relief and support to various segments of the Australian population, aiming to alleviate some of the burdens they currently face.