From July 1, there is a raft of changes that come into effect. One change is that workers’ superannuation will get a boost when the superannuation guarantee increases to 10.5 per cent and will continue going up until it reaches 12 per cent in 2025.
This will have a massive impact on the super balances of the average 30-year-old worker who will see their super balance jump from $468,000 to $534,000, which is a massive $66,000 difference according to the Association of Superannuation Funds of Australia (ASFA).
So what other changes can Australians expect from July 1?
The $450 per month income threshold will also be removed, which means that more workers can expect superannuation payments.
Retirees aged between 67 and 74 will have the ability to top up their super without having to undertake any test as long as their super balance is lower than $1.7 million in July 2022. Workers between 67 and 74 will need to pass a work test if they want to claim a personal superannuation deduction for any contributions they make.
Those wanting to downsize their homes will be able to five years earlier at the age of 60 instead of the age of 65. The Downsizer Scheme allows eligible home sellers to make a one-time contribution of $300,000 to their super.
First home buyers will breathe a sigh of relief with the maximum withdrawal from the First Home Super Saver Scheme increasing from $30,000 to $50,000. The maximum amount of voluntary contributions that can be released remains at $15,000 per financial year and $50,000 in total.
JobSeekers receiving payments from Centrelink will have to earn 100 points and search for at least five jobs to receive payment from July 1.
Centrelink has created a list of 30 tasks and activities that carry points, for example, a job interview is worth 20 points and a job application is worth five.
The points-based system will replace the current system where job seekers are required to apply for 20 jobs each month.
Power prices will increase
Australians can expect to pay more for their electricity after the Australian Energy Regulator announced they would pass on power price increases. Bills are expected to increase by 18.3 per cent in NSW, 12.6 per cent in Queensland and 9.5 per cent in South Australia.
Comparison website, Finder suggested that people should look for a cheaper electricity provider to avoid bill shock. Finder energy expert Mariam Gabaji told News.com.au: “You have two different types of energy plans on the market: Those that offer fixed rates for a certain period (such as 12 months) or others that have variable rates.
“If you don’t like switching electricity plans often in search of the cheapest variable rates, you’re likely to benefit from a fixed-rate plan instead.
Telstra mobile plans will increase
Telstra has announced that from July 1, consumers can expect to pay more for their mobile plans to match the Consumer Price Index. Basic plans will increase by $3 per month whereas premium plans will go up by $4 a month.
Medication will be free
Concession card holders won’t have to pay for their PBS medications from July 1 because the PBS Safety Net threshold for concession card holders will decrease to $244.80.
Childcare subsidies to increase
Childcare subsidies for families with more than one child aged five or under will be paid a higher childcare subsidy rate for any subsequent children from July 1. Services Australia may also administer back pay if they were eligible between March 7 and June 30 this year.