The end of the financial year is approaching.
While some only associate this period with tax returns and the odd sale purchase, it’s usually when we see key financial changes introduced.
This year is no different – there are several policies coming into effect that could have an impact on your hip pocket.
Here’s what’s changing.
Tax cuts
If you’re one of the 13.6 million Australians who pay tax, you’ll notice a hit in your paycheck.
That’s because the tax cuts, which were approved in February, will go into effect.
You can see how much you’ll save under the changes using the calculator below
Here are the new tax brackets at a glance:
- Earn up to $18,200 – I don’t pay tax
- Pay a 16 percent tax rate on every dollar earned between $18,201 – $45,000
- Pay a 30 percent tax rate on every dollar earned between $45,001 – $135,000
- Pay a 37 percent tax rate on every dollar earned between $135,001 – $190,000
- Pay a 45 percent tax rate for each dollar earned above $190,000
Because these changes will apply to taxable income you earn from July 1, they it will not affect your tax return this year.
The minimum wage is increased
More than 20 percent of Australian workers will benefit from an increase in minimum wages and remuneration.
These are set to increase by 3.75 percent $24.10 an hour.
If you’re on the national minimum wage and work 38 hours a week, you’ll earn $913.91.
That’s an increase of about $33.
Payments of social services
People in certain government payments there will be a slight increase with the July indexation coming into effect.
This is because welfare payments are regularly adjusted to keep up with changes in indices such as the Consumer Price Index.
In a statement released in early June, Social Services Minister Amanda Rishworth said there would be an increase in the following payments:
- Family tax benefit A and B
- Supplement for newborns
- Allowances for multiple births
- Payment of dead baby
- Payment for essential medical equipment
It also noted increases in income and asset thresholds for retirees, among other things.
People on Rent Assistance payments will also see a 10 per cent rise.
Pension payments
Your employer will decide more in your nest egg this year with the increase in mandatory pension payments.
Minimum payments it will increase by 50 basis points to 11.5 percent of your earnings.
If you want to invest more in your super, the maximum threshold for concessionary contributions will also increase.
This is the amount you can invest each year without having your contributions subject to additional taxes.
From 1 July 2024, the concessional contribution limit will be $30,000, up from $27,500.
In the meantime, Non-concessional cap contributions — The maximum amount of after-tax contributions — will increase from $110,000 to $120,000.
Energy relief loans
A $300 energy rebate it’s one of the few measures in the federal government’s budget that aims to put money back in your pocket.
But you won’t get it all at once.
The discount, which is going down credited to every Australian household’s electricity bill, will be applied every quarter.
So that means you’ll get $75 for each of the next four quarterly energy bills.
This national measure is separate from state-specific rebates, such as Queensland’s $1000 energy rebate.
Parental leave
There is good news if you are going to have a child: Paid parental leave will be extended by 10 days.
When you factor in weekends, that means it will go from 20 weeks to 22 weeks.
This will apply if your child is born, or comes into your care, after 1 July.
Because payments are made at the national minimum wage, they will also take a small hit.
#financial #year #Heres #July #affect #wallet
Image Source : www.abc.net.au
