How Centrelink Payments, Taxes and Wages Are Changing in Australia From Today (July 1)

We’re here, folks. The end of the financial year (EOFY) has been and gone, and while most people take this date as a sign they need to get moving on their tax return (we can help with that), that’s not the only significant event come this time of year. July 1 signifies the start of a new financial year, which means new budgets are set in place (ask for a pay review!), and new rates and benefits will be rolling out, too.

If you’re wondering what’s set to change across Australia come July 1, 2024, here is a list of some of the more notable changes coming into effect as of the new financial year.

New financial year changes: What’s on the way in July?

Minimum wage in Australia is going up in the new financial year

Per the Fair Work Comission, the National Minimum Wage will be increasing by 3.75 per cent from July 1, 2024.

This is lower than last year’s 5.75 per cent bump, and Fair Work has conceded that cost of living pressures remain high and that “modern award minimum wages remain, in real terms, lower than they were five years ago”. However, it stated that it considers it is “not appropriate at this time to increase award wages by any amount significantly above the inflation rate, principally because labour productivity is no higher than it was four years ago and productivity growth has only recently returned to positive territory”.

The new National Minimum Wage will be $24.10 per hour or $915.90 per week.

This rate will come into effect from the first pay cycle post-July 1.

Centrelink payment rates will change with indexation

As has been announced by the Department of Social Services, payment indexation that’s set to come into effect on July 1 will offer additional support to those on certain Centrelink payment services like the Family Tax Benefit, the Newborn Supplement and Multiple Birth Allowance, as well as recipients of Age Pension, Disability Support Pension and Carer Payment.

Some examples of this include:

• Family Tax Benefit (Part A) for children under 13 years old will increase $8.88 per fortnight to $222.04
• For children aged 13 years old or over, the increase will be $11.34 to $288.82 a fortnight
• Family Tax Benefit Part B for a family with a youngest child aged under five years old will increase by $7.42 to $188.86 a fortnight
• For families with a youngest child aged five years old or over, the increase will be $5.18 to $131.74 a fortnight
• Multiple Birth Allowance payment will increase by $7.56 to $191.94 for triplets and by $10.08 to $255.78 for quadruplets or more
• The Newborn Supplement for a first child or multiple birth will increase by $79.17 to $2,003.82 (paid over 13 weeks). For a second or subsequent child, this will increase by $26.39 or $668.85 (over 13 weeks). Additional upfront payments will increase by $26 to $667 in the new financial year
• The Stillborn Baby Payment is set to increase by $165.93 to $4,225.10 per child

Energy bill relief will come into effect

As was announced in the Federal Budget, a small $300 saving will be implemented for household energy bills (every home will receive it). One million small businesses will also gain access to this automatically-applied benefit.

It will automatically be deducted from household power bills from July 1, 2024.

The super guarantee rate is increasing in the new financial year

Another positive change coming in the new financial year is that your superannuation rate will go up. As of July 1, employers will be required to pay their staff super at a rate of 11.5 per cent (this is up from 11 per cent). More on that via the ATO, here.

The rate is set to increase incrementally until it hits 12 per cent in 2025.

Paid parental leave is changing

Paid parental leave is set to change in Australia as of July 1, 2024. If your child is born or adopted from this date, you may be eligible for 110 days of Paid Parental Leave, and 10 additional days for Partner Paid Leave.

From July 1, 2024, new exemptions from the work test will also be accepted. They are, as listed by Services Australia:

• family and domestic violence
• a serious medical condition, for either you or an immediate family member you care for
• a natural disaster declared by the Commonwealth or a state or territory

See more on the changes after EOFY here.

Stage 3 tax cut changes will come into effect in the new financial year

You’ve heard a whole lot about the Stage 3 tax cuts. Well, the updated legislation is coming into practice with the new financial year in July.

In the Federal Budget for 2024-25, it was stated that every Australian would receive a tax saving under the new scheme.

This is how the rates are changing after EOFY, and for who:

There’s still a little time left before EOFY, but there’s no better time to start planning. Maybe by purchasing these items before EOFY on June 30 (thank us later).

Lead Image Credit: iStock

This article has been updated since its original publish date.