Higher wages and bills among changes to take effect
Major Financial and Regulatory Changes Take Effect from July 1
A suite of significant changes impacting wages, superannuation, energy costs, and business regulation came into effect from July 1, marking a new financial landscape for Australian households and businesses. These updates, announced by various government bodies, are expected to influence budgeting, planning, and investment decisions across the country.
Wages and Superannuation Adjustments
Approximately three million Australian workers on minimum and award wages will benefit from a 3.5 per cent pay increase, following a ruling by the Fair Work Commission. This adjustment aims to support workers amid rising living costs and inflationary pressures.
In addition, the superannuation guarantee has increased from 11.5 per cent to 12 per cent. Employers are now required to contribute a minimum of 12 per cent of an employee’s earnings to their superannuation account. This change is part of a broader strategy to strengthen retirement savings for Australians.
Another notable development is the extension of superannuation payments to workers on paid parental leave, a move designed to improve long-term financial outcomes for parents taking time off to care for newborns.
Students in nursing, midwifery, teaching, and social work will also see financial relief. Over 70,000 students undertaking mandatory practical placements as part of their degrees will now be eligible to receive $331.65 per week, easing the financial burden during unpaid training periods.
For retirees, the age pension has increased by $22.50 per fortnight for singles and $34.50 for couples, providing modest but welcome support.
Clean Energy Incentives and Vehicle Standards
Households investing in clean energy solutions can now access a 30 per cent discount on the purchase and installation of home battery systems. This initiative is expected to encourage greater adoption of renewable energy and reduce reliance on the grid.
New vehicle efficiency standards have also come into force. These standards aim to reduce fuel consumption and emissions, potentially lowering long-term running costs. However, consumers may face higher upfront costs at dealerships as manufacturers adjust to compliance requirements.
NDIS Funding Reforms
Changes to the National Disability Insurance Scheme (NDIS) include revised hourly rates for several services. Physiotherapy rates will decrease by $10 per hour, while podiatry and dietetics will drop by $5 per hour. Conversely, psychology services will see a $10 per hour increase. Most other services will remain unchanged.
Travel claims for NDIS therapists will be halved, and the agency administering the scheme will now have the authority to make changes to participants’ plans without requiring a full reassessment. These adjustments are intended to streamline service delivery and reduce administrative overhead.
Rising Household Bills
Energy bills are set to rise by up to 9.1 per cent for some customers, following changes to the energy regulator’s default market offer. Internet bills are also expected to increase, with the NBN raising average wholesale prices by up to $1.71 per month. These increases may prompt households to reassess their utility providers and consumption habits.
Business Regulation and Taxation Updates
Businesses will face new regulatory requirements and cost adjustments. A voluntary merger notification regime has been introduced, requiring companies to notify the Australian Competition and Consumer Commission (ACCC) ahead of acquisitions. This measure is designed to enhance market transparency and competition oversight.
Interest charges on overdue tax debts will no longer be tax deductible. Businesses will now bear the full cost of the 10.78 per cent interest rate on outstanding taxes, a change that underscores the importance of timely tax compliance.
Administrative fees have also increased. Registering a business name with ASIC now costs $45, up from $44, while the fee for registering a new proprietary company has risen to $611 from $597.
These changes reflect a broader shift in policy aimed at balancing economic growth, social support, and environmental sustainability. Individuals and businesses alike are encouraged to review their financial strategies and seek professional advice to navigate the evolving landscape.
For tailored guidance on how these updates may affect your financial position or business operations, please contact Phillips Wealth Partners.