Australia is set for several financial and policy changes starting 1 July 2024, affecting wages, superannuation, Centrelink payments, and tax rules. Here’s a breakdown of the key updates.
1. Minimum and Award Wage Increases
From 1 July 2024, the National Minimum Wage and Award Wages will rise following the Fair Work Commission’s annual review.
| Change | New Rate (From 1 July 2024) |
|---|---|
| National Minimum Wage | $23.23 per hour (3.5% increase) |
| Award Wages Increase | 3.5% – 5.75% (varies by industry) |
🔹 Who’s Affected? Workers on minimum wage, award-covered employees, and some casual workers.
2. Superannuation (Super) Guarantee Rise
The Super Guarantee (SG) rate will increase from 11% to 11.5% on 1 July 2024.
| Year | Super Guarantee Rate |
|---|---|
| 2023–24 | 11% |
| 2024–25 | 11.5% |
| 2025–26 | 12% (final increase) |
🔹 Impact: Employees will see slightly higher super contributions, while employers must adjust payroll systems.
3. Centrelink Payment Increases
Most Centrelink payments will rise due to indexation adjustments (based on inflation).
| Payment Type | Estimated Increase |
|---|---|
| Age Pension | ~$20–$30 per fortnight |
| JobSeeker Payment | ~$15–$25 per fortnight |
| Disability Support | ~$20–$35 per fortnight |
| Parenting Payment | ~$15–$20 per fortnight |
🔹 Note: Exact amounts will be confirmed by Services Australia.
4. Stage 3 Tax Cuts Begin
The revised Stage 3 Tax Cuts take effect from 1 July 2024, reducing tax rates for most workers.
| Taxable Income | New Tax Rate (From 1 July 2024) |
|---|---|
| $0 – $18,200 | 0% (tax-free threshold) |
| $18,201 – $45,000 | 16% (down from 19%) |
| $45,001 – $135,000 | 30% (down from 32.5%) |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
🔹 Key Benefit: Middle-income earners ($50k–$135k) will see the biggest tax savings.
5. Energy Bill Relief & Cost-of-Living Support
- $300 Energy Rebate: Eligible households will receive $300 off electricity bills (credited quarterly).
- Small Business Relief: Some businesses get $325 in energy bill support.
6. Medicare & Health Changes
- Medicare Levy Threshold Increase (reducing tax for low-income earners).
- PBS (Pharmaceutical Benefits Scheme) updates, with some medications becoming cheaper.
7. First Home Buyer & Super for Housing
- Help to Buy Scheme begins (shared equity scheme with the government).
- Superannuation for Housing: First-home buyers can use up to $50,000 from super (under existing FHSSS rules).
8. Work-Related Expense Deductions
- Revised ATO rules on work-from-home deductions (simplified method remains at 67c per hour).
- Motor vehicle claim rates adjusted for 2024–25.
Conclusion: Prepare for the Financial Year Change
From higher wages and super to tax cuts and Centrelink boosts, 1 July 2024 brings significant financial adjustments.
🔗 Official Updates: ATO | Services Australia
Will these changes benefit you? Let us know in the comments! 💬