A new financial year is just over a week away bringing some major changes for Australians.
From minimum wage increases and electricity price rises to new tax rules and amendments to pension requirements that will benefit older Aussies, there will be a raft of changes in effect from July 1.
One major change will make it a lot easier for New Zealanders to attain Australian citizenship.
‘Australia and New Zealand have a deep friendship, which has been forged through our history, shared values and common outlook,’ Prime Minister Anthony Albanese said of the changes.
‘We know that many New Zealanders are here on a Special Category Visa while raising families, working and building their lives in Australia. So I am proud to offer the benefits that citizenship provides.’
Below Daily Mail Australia takes a look at some of the new rules.
From July 1 2023, the minimum wage for Australians will be $23.23 and hour or $882.80 a week
Workers on an award will see a 5.75 per cent increase to base rates from July 1
Minimum wage increase:
Changes to the minimum wage previously announced are in effect from July 1.
The minimum wage will be $23.23 and hour or $882.80 a week.
Those on an award will see a 5.75 per cent increase to base rates.
Electricity price hikes:
Some electricity providers will be increasing rates from July 1.
This includes three of Australia’s largest providers – Origin, AGL, and Red Energy.
Households in NSW, south-east Queensland and South Australia will see hikes of between 19.6 per cent and 24.9 per cent from July 1, and in some cases as high as 30 per cent.
Aged pension:
Australians born on or after January 1, 1957, will have to reach 67 years of age before becoming eligible for the pension.
From July 1, singles can earn $204 a fortnight and couples $360 a fortnight, before losing their full pension.
Home-owning singles can have $301,750 worth of assets before their pension in reduced, while non-homeowners can have $543,000.
These amounts increase to $451,500 for home-owning couples or $693,500 for couple who don’t own a house.
Those who were previously ineligible for a pension could qualify for a part payment with income threshholds raised to $2332 a fortnight for singles and $3568 for couples.
Childcare payments:
Families who earn less than $530,000 of combined income will be able to access an increased childcare subsidy from July 10.
The maximum subsidy amount will also see an increase of 5 per cent from 85 to 80 per cent.
Parental leave:
On 1 July 2023, Parental Leave Pay and Dad and Partner Pay are combining into one payment.
New parents will be able to access 20 weeks of paid leave to be split however suits them.
Families who earn less than $530,000 of combined income will be able to access an increased childcare subsidy from July 10
Tax changes:
There are no changes to personal income tax thresholds from July 1 2023.
From July 2024, however, some tax thresholds will be removed leaving only the 19 per cent, 30 per cent and 45 per cent tax brackets.
The low and middle income tax offset (LMITO) is no longer available for this year or 2024, which will see many people get lower refunds.
From July 1 this year the threshold for the Medicare levy surcharge will be raised.
For singles this increases from $90,000 to $93,000 before the tax applies, while for families it will increase from $180,000 to $186,000.
Superannuation:
The super guarantee rate increases from 10.5 to 11 per cent on July 1 this year.
It will also increase by 0.5 per cent over the next two years to reach 12 per cent.
The change means employers will be putting more of your pay into you superannuation.
Migration:
The Temporary Skilled Migration Income Threshold (TSMIT) will increase from $53,900 to $70,000 from July 1.
Employers looking to sponsor overseas workers will need to offer an annual salary of at least $70,000 plus superannuation to candidates.
Some Labor Market Testing (LMT) requirements will be removed so companies do not need to advertise jobs locally before inviting overseas candidates. This applies to the top two tiers of skilled workers earning above $70,000.
Temporary Skill Shortage visa holders will get increased pathways to permanent residency.
Kiwis living in Australia for four or more years will no longer have to get permanent residency before applying for Australian citizenship.
Children born in Australia to New Zealand parents will also qualify for Australian citizenship.
The Pacific Engagement Visa (PEV) will allow people from Pacific countries and Timor Leste to apply for permanent residency with 3,000 places available.
The super guarantee rate increases from 10.5 to 11 per cent on July 1 this year
Employers looking to sponsor overseas workers will need to offer an annual salary of at least $70,000 plus superannuation to candidates
Student visas:
Student visa holders will be limited to working 48 hours per fortnight again from July 1 after restrictions were removed during the Covid pandemic.
Some holders of subclass 485 Temporary Graduate visas will be allowed to stay in Australia for a longer period.
From July 1, it will be four years for a bachelor’s degree graduate, up from two years previously.
For master’s degree graduates it will be five years, up from three years previously
While doctoral graduate are allowed six years, up from four years previously.
