Key Points
- Australian parents will soon have access to extended benefits under the government's Paid Parental Leave scheme.
- A phased increase in the superannuation guarantee begins July 1, raising it from 11% to 11.5% for the 2024-25 financial year, and further to 12% from July 2025 onwards.
- Ten million households will receive energy bill rebates throughout the year.
Starting July 1, several significant adjustments to tax rates, rebates, and regulations will come into effect.
Tax Cuts and Adjustments
Among the key changes are tax cuts that will affect multiple income brackets. Workers earning above the tax-free threshold (currently $18,200) will benefit from reduced tax payments due to the government's reforms to stage three tax cuts, which were approved earlier this year by parliament.
Under this package, Australians can expect to receive between $350 and $4,500 in additional annual income, depending on their income bracket.
Minimum wages
Starting July 1st, workers on the national minimum wage and those covered by modern awards will experience a 3.75% increase, bringing their hourly rate to $24.10.
Announced earlier in the month by the Fair Work Commission, this adjustment is anticipated to impact approximately one quarter of Australia's workforce.
For those working a standard 38-hour week, this adjustment results in a weekly wage increase from $882.80 to $915.90.
Changes in Superannuation Contributions
Effective July 1, adjustments will also be made to superannuation contributions. The superannuation guarantee will increase from its current 11% to 11.5% for the 2024-25 financial year. Subsequently, from July 2025, it will rise once more to 12%, marking the final scheduled increase for the time being.
This adjustment means that for many workers, there will be significant additional employer contributions amounting to hundreds of dollars annually.
Paid Parental leave
Starting July 1, 2024, parents can take up to 110 days (22 weeks) of paid leave, increased from the current 100 days (20 weeks). This change applies to parents welcoming children born or entering care from this date onwards.
Further enhancements are on the horizon: the paid leave duration will expand to 120 days from July 2025, and to 130 days from July 2026.
From July 2025, parents will also be eligible to receive superannuation contributions on their parental leave payments for the first time.
Energy Bill
The federal government's budget includes substantial energy bill relief measures.
Under this plan, 10 million households across the country will receive $300 in energy bill rebates, while approximately one million small businesses will benefit with a $325 rebate. These rebates will be distributed in quarterly instalments throughout the financial year, totaling a budgetary allocation of $3.5 billion.
Additionally, changes in electricity prices are expected due to the Australian Energy Regulator's new Default Market Offers for 2024-25. Residents in New South Wales might see a 1% decrease, South Australians a 2.8% decrease, but those in South East Queensland may face a 4.2% increase.
