End of fiscal year, EOFY: All changes come to Australia on July 1

The new financial year is just around the corner, which means that there are new rules that may cost you. Here’s what you need to know.

The new financial year is almost here – which means that a number of huge changes are just around the corner.

The new financial year begins on July 1 and is an important stage in the middle of the year, bringing with it many major changes such as new laws and regulations, fees and charges, taxes and benefits.

Here’s what you need to know before July 1, 2022.

Cash increase for 1.4 million families

More than 1.4 million Australian families will receive a welcome increase in family payments from 1 July in an effort to ease the cost of living.

Under the change, Centrelink’s Family Tax Benefit Payments (Parts A and B) will increase, and households with children under the age of 13 will receive a Family Tax Benefit, Part A increase of up to $ 204.40 in 2022-23.

For those with a child 13 and older, the payment will reach a maximum of $ 255.50, while those eligible for Family Tax Relief, Part B, will see an increase to $ 164.25 per year for families with a child under five.

Families on Family Tax Relief, Part B with the youngest child between the ages of five and 18 will receive up to $ 116.80 more per year.

Centrelink shook

A major overhaul of Centrelink is imminent, which means big changes are coming for those in the JobSeeker program.

From 1 July, recipients required to complete the mutual commitment process in order to receive social benefits will be transferred to a point-based activation system (PBAS).

Those affected will need to receive 100 points and make a minimum of five job searches per month to secure payment.

There is a list of more than 30 tasks and activities, each of which carries its own individual value of points, attending a job interview worth 20 points and filling out a job application worth five.

PBAS will replace the current system, which requires jobseekers 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 supervisor raises prices hundreds of dollars a year.

The Australian energy regulator (AER) will pass on significant increases in the reference price of electricity – meaning bills will jump 18.3% in NSW, 12.6% in Queensland and 9.5% in South Australia in July.

The comparison site Finder called on Australians to shop before July 1 to avoid a shock from the bills.

“You have two different types of energy plans on the market: those that offer fixed tariffs for a certain period (like 12 months) or others that have variable tariffs,” said Finder energy expert Mariam Gabaji.

“If you don’t like to change your electricity plans often in search of the cheapest variable tariffs, you will probably take advantage of a fixed tariff plan.

Super changes

From July 1, the rate for the Super Guarantee will increase from 10% to 10.5%, which means that employers will have to deposit extra money into their staff super accounts.

Next month, the $ 450 monthly minimum wage threshold to qualify for employer super-guarantee contributions will also be removed, meaning that all workers, except those under the age of 18, who work less than 30 hours weekly – should receive super payments, no matter how little I happen to earn.

And in July, those aged 60 and over will be able to contribute up to $ 300,000 per person or $ 600,000 per couple to their super account, using the so-called “size reduction measure”, as long as they meet the conditions.

Major government changes

After the election victory of the Labor Party, on July 1, a number of departmental and administrative changes will take effect.

From this date, a new Department of Employment and Workplace Relations will be established to provide government workplace relations, jobs, skills and a training agenda.

A new Department for Climate Change, Energy, Environment and Water will be established, while the Ministry of Health will be renamed the Ministry of Health and Adult Care, and the Ministry of Infrastructure, Transport, Regional Development and Communications will be renamed infrastructure, transport, regional development, communications and the arts.

The Ministry of Finance will be responsible for data policy, including the Digital Transformation Agency, as well as deregulation, and the Ministry of Interior will be responsible for responding to and mitigating natural disasters, including the National Agency for Reconstruction and Sustainability.

The Attorney General’s portfolio will also be responsible for enforcing criminal law and policy, including the Australian Federal Police.

Immigration

Holders of subclass 482 short-term skills shortages (TSS) who worked in Australia during the pandemic will have access to a new route of permanent residence in Australia from 1 July.

From then on, TSS visa holders will be able to apply for permanent residence through the Temporary Residence Flow (TRT) of the Subclass Employer Nomination Scheme (ENS).

Applicants must have been in Australia between 1 February 2020 and 14 December 2021 for at least one year and must meet all other nomination and visa requirements for the TRT visa flow ENS.

Free medicines

From July, the PBS Safety Net threshold for concession card holders will be reduced to $ 244.80.

This means that concession card holders will receive their PBS medicines free of charge when they reach the reduced threshold.

Car prices are jumping

The changes in the luxury car tax threshold mean that the economy vehicle threshold will be raised by 6.6% to $ 84,916 next month.

For all other vehicles, it rose 3.9% to $ 71,849.

Relief for child care

The so-called “combined families” – in which both members of the couple receive a childcare allowance for different children in their family – will automatically receive the higher subsidy from July.

Any higher subsidy for which these families were eligible between March 7 and July 2022 will be refunded.

Telstra customers are under pressure

From next month, the prices of Telstra’s mobile plans will increase in line with the consumer price index.

This means that the cost of basic and basic plans will increase by $ 3 per month, while premium plans will jump by $ 4.

However, the telecom noted that further increases could be expected, saying that “the pricing of the plan will include an annual review and may increase annually.”

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