The start of the new financial year today, 1 July, brings a raft of changes that will affect households, workers, retirees, families and businesses across the Hawkesbury.
From tax cuts and higher wages to expanded paid parental leave and three hours of free electricity each day for eligible households, millions of Australians are set to benefit from changes introduced by the Federal Government and other authorities.
Three Hours of Free Electricity
One of the most significant changes for Hawkesbury residents is the introduction of the Federal Government's Solar Sharer Offer.
Eligible households in New South Wales can opt in through participating electricity retailers to receive three hours of free electricity each day during the middle of the day, when solar generation is at its highest.
Importantly, households do not need to have rooftop solar to participate.
To qualify, households must:
- live in an eligible area;
- have a smart electricity meter installed; and
- sign up with a participating electricity retailer.
The initiative aims to encourage greater use of renewable energy while helping reduce household electricity bills.
Pay Rise for Millions of Workers
Around 2.8 million Australians covered by modern awards will receive a 4.75 per cent pay rise.
The National Minimum Wage increases to $26.44 per hour, or $1,004.90 per week for a full-time employee working a 38-hour week before tax.
The increase applies from the first full pay period commencing on or after 1 July.
Many workers employed in retail, hospitality, aged care, administration, childcare, manufacturing and other award-based industries throughout the Hawkesbury will benefit.
Tax Cut Takes Effect
Workers will also receive additional tax relief.
The lowest marginal tax rate has been reduced from 16 per cent to 15 per cent for taxable income between $18,201 and $45,000.
The reduction means many workers will notice slightly higher take-home pay throughout the year.
Superannuation Changes
Australians will be able to contribute more to their superannuation from 1 July.
The annual concessional contribution cap increases from $30,000 to $32,500, while the non-concessional cap rises from $120,000 to $130,000.
The general transfer balance cap also increases from $2 million to $2.1 million.
Although widely referred to as "payday super", employers will continue preparing for the transition to paying superannuation at the same time as wages under the Federal Government's reform timetable, which is intended to reduce unpaid super and make retirement savings easier to track.
Paid Parental Leave Expanded
Families welcoming a child from 1 July will receive additional government-funded parental leave.
The scheme increases from 120 days to 130 days, equivalent to 26 weeks.
Reserved partner leave also increases from 15 days to 20 days, providing greater flexibility for families to share caring responsibilities.
Centrelink and Pension Thresholds Increase
A range of government payment thresholds will increase through routine indexation.
Families receiving Family Tax Benefit, along with recipients of the Age Pension and Disability Support Pension, will benefit from updated income and asset thresholds.
Medicare Levy Surcharge Changes
The Medicare Levy Surcharge (MLS) is an additional tax paid by higher-income earners who do not have eligible private hospital insurance.The income thresholds for the Medicare Levy Surcharge have increased.
The surcharge now applies only to singles earning more than $105,000 and families earning more than $210,000, provided they do not hold eligible private hospital cover.
New Consumer Protections
Consumers can expect stronger protections in several areas.
Businesses using branded text messages will now be required to register their sender IDs as part of new anti-scam measures aimed at making it harder for criminals to impersonate trusted organisations.
Electricity customers covered by the National Energy Customer Framework will also receive greater protection before supply can be disconnected for unpaid bills.
NSW Changes
In New South Wales, work begins on the staged introduction of mandatory Food Organics and Garden Organics (FOGO) recycling for larger waste generators, ahead of wider implementation over coming years.
Additional anti-money laundering and counter-terrorism financing obligations will also begin applying to a broader range of professional services.
More to come
Several other major reforms have already been legislated but will commence later.
These include changes to capital gains tax and negative gearing, while the Federal Government is continuing work on proposed tax changes affecting very large superannuation balances.
For most Hawkesbury residents, however, the immediate changes taking effect from 1 July are likely to be felt through slightly larger pay packets, lower tax, increased superannuation contribution limits and, for many households, the opportunity to reduce electricity bills through the new Solar Sharer Offer.
