Bills, taxes and thresholds: what will change for taxpayers on July 1

Changes to a number of federal policies come into effect on July 1. Among the altered legislation is the debt levy, an increased minimum wage and rising aged-care costs for some higher income earners.

Electricity

• With likely repeal of carbon tax bill under a new Senate, the Federal Government estimates electricity prices will fall by 9 per cent but rising network costs - typically comprising over half a power bill – could gobble up any savings.

Superannuation

• Super guarantee (compulsory employer contributions) rises from 9.25 per cent to 9.5 per cent. 
• Contributions caps rise.

Work

• 12-month pay freeze for MPs, departmental secretaries and public office holders begins.
• National minimum wage rises 3 per cent - or approximately 50 cents an hour - to $16.87 per hour to $640.90 per week.
• Expanded work for the dole program begins.
• Up to $10,000 payments will be made available for businesses hiring workers aged 50+.
• Business activity statements cease for electronic lodgers.

Health insurance

• Private health insurance income thresholds rise.
• Medicare levy rises from 1.5 per cent to 2 per cent to fund National Disability Insurance Scheme (DisabilityCare).

Aged and disability care

• New nursing home residents to have assets included in calcatuions for fees payable for care and living expenses.
• Aged care subsidies for home and residential care providers and community programs increase.
• High and low care services can charge residents a means-tested fee of up to $25,000 per year.
• National Disability Insurance Scheme trials begins in the ACT, WA and NT.
• Higher indexation of the Defence Forces Retirement and Benefits schemes.

Other charges

• Temporary debt levy is introduced, with 2 per cent charge on taxable income above $180,000.