The new fiscal year is just around the corner, which means new rules are on the way that could cost you money. Here’s what you need to know.
The new fiscal year is almost upon us – and that means a series of huge changes are just around the corner.
The new fiscal year begins on July 1, and it is a major milestone for the middle of the year, which brings many important changes, such as new laws and regulations, fees and charges, and taxes and benefits.
Here’s what you need to know before July 1, 2022.
Shake up Centrelink
A major overhaul of Centrelink is coming, which means big changes are ahead for those who participate in the JobSeeker program.
As of July 1, recipients who must complete the mutual obligations process to receive benefits will be transitioned to a points-based activation system (PBAS).
Those affected must receive 100 points and seek a minimum of five vacancies per month to secure payment.
There is a list of over 30 tasks and activities that each have their own individual point value, with attending an interview worth 20 points and completing an application worth five.
The PBAS replaces the current system whereby job seekers have to apply for 20 jobs each month.
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Electricity costs are rising
Millions of families will see their electricity costs rise next month after the energy industry watchdog drives up prices with hundreds of dollars a year.
The Australian Energy Regulator (AER) will pass hefty increases to the standard electricity price – meaning bills will rise 18.3 percent in NSW, 12.6 percent in Queensland and 9.5 percent in South Australia in July.
Comparison site Finder urged Aussies to shop around before July 1 to avoid a shocking bill.
“You have two different types of energy plans on the market: those with fixed rates for a period of time (such as 12 months) or others with variable rates,” says Finder energy expert Mariam Gabaji.
“If you don’t like switching electricity plans often in search of the cheapest variable rates, then you probably benefit more from a flat-rate subscription.”
From July 1, the Super Guarantee percentage will be increased from 10 percent to 10.5 percent, meaning employers will have to deposit additional funds into their employee super accounts.
Next month will also scrap the $450 monthly minimum wage to qualify for employer Super Guarantee contributions, meaning all employees — except under 18s who work fewer than 30 hours a week — must receive super pay. little they also happen to earn.
And in July, people over 60 can deposit up to $300,000 per person or $600,000 per couple into their super accounts using the so-called “downsizer measure,” as long as they qualify.
Major Government Changes
In the wake of Labour’s election victory, a series of departmental and administrative changes will come into effect from July 1.
From that date, a new Department of Employment and Labor Relations will be established to deliver the government’s agenda for labor relations, jobs, skills and training.
A new Ministry of Climate Change, Energy, Environment and Water will also be established, while the Ministry of Health will be renamed the Ministry of Health and Elderly Care and the Ministry of Infrastructure, Transport, Regional Development and Communications will be renamed the Ministry of Infrastructure , transport, regional development, communication and art.
The Treasury Department will be responsible for data policy, including the Agency for Digital Transformation, and for deregulation, and the Department of the Interior will be responsible for natural disaster response and mitigation, including the National Recovery and Resilience Agency.
The Attorney General’s portfolio will also be responsible for enforcement and criminal justice policy, including the Australian Federal Police.
Temporary Temporary Skills Shortages (TSS) Subclass 482 visa holders who have worked in Australia during the pandemic will be able to access a new Australian permanent residency pathway from 1 July.
From then on, TSS visa holders can apply for permanent residency through the Temporary Residence Transfer (TRT) stream of the Subclass 186 Employer Nomination Scheme (ENS) visa.
Applicants must have been in Australia for at least one year between February 1, 2020 and December 14, 2021 and must meet all other nomination and visa requirements for the TRT flow of the ENS visa.
Beginning in July, the PBS Safety Net threshold for concession card holders will be lowered to $244.80.
That means concession card holders get their PBS drugs for free upon reaching the lowered threshold.
Jumping car prices
Changes to the Luxury Car Tax threshold mean the threshold for fuel-efficient vehicles will increase by 6.6 percent to $84,916 next month.
For all other vehicles, it is up 3.9 percent to $71,849.
So-called “combined families” – where both members of the couple receive the Childcare Allowance for different children in their family – will automatically receive the higher allowance from July.
Any higher subsidy that these families were eligible for between March 7 and July 2022 will be refunded.
Telstra customers squeezed
Starting next month, Telstra’s mobile subscription prices will rise in line with the consumer price index.
That means the cost of basic and essential plans will increase by $3 per month, while premium plans will increase by $4.
However, the telco noted that more increases could be lurking, stating that “the subscription pricing will include an annual review and may increase annually”.