All changes coming July 1

The new fiscal year is just around the corner, which means new rules are on the way and could cost you dearly. Here’s what you need to know.

The new financial year is almost here – and that means a series of huge changes are upon us.

The new fiscal year begins July 1. This is a major mid-year milestone, bringing many major 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.

Centrelink shakes

A huge overhaul of Centrelink is coming, which means big changes ahead for those who participate in the JobSeeker program.

From July 1, beneficiaries who must complete the mutual obligation process in order to receive social benefits will be transferred to a points-based activation system (PBAS).

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

There is a list of over 30 tasks and activities that each have their own point value, with attending a job interview worth 20 points and completing a job application worth five.

The SAFP will replace the current system where job seekers are required to apply for 20 jobs each month.

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Electricity costs will skyrocket

Millions of families will see their electricity costs rise next month after the energy industry watchdog raised prices by hundreds of dollars a year.

The Australian Energy Regulator (AER) will pass on steep increases to the benchmark electricity price, meaning bills will soar by 18.3% in New South Wales, 12.6% in the Queensland and 9.5% in South Australia in July.

Comparison site Finder has urged Australians to shop before July 1 to avoid bill shock.

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

“If you don’t like to switch electricity plans often in search of the cheapest variable rates, you’ll probably get a fixed rate plan instead.”

great changes

From July 1, the super guarantee percentage rate will increase from 10% to 10.5%, which means that employers will have to deposit additional cash in their staff super accounts.

Next month, the $450 monthly minimum wage threshold to qualify for employer super guarantee contributions will also be removed, meaning all workers – except those under 18 who work less 30 hours a week – must receive super payouts no matter how little they happen. to win.

And in July, people aged 60 and over will be able to contribute up to $300,000 per person or $600,000 per couple into their super account using the so-called “downsizing measure” as long as they are eligible.

Major government changes

Following Labor’s election victory, from July 1, a series of departmental and administrative changes will come into effect.

From this date, a new Ministry of Employment and Workplace Relations will be created to implement the government’s agenda on labor relations, jobs, skills and training.

A new Department of Climate Change, Energy, Environment and Water will also be created, while the Department of Health will be renamed the Department of Health and Elderly Care and the Department of Infrastructure, Transport, Regional Development and Communications will be renamed Department. 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 natural disaster response and mitigation, including the National Recovery and Resilience Agency.

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

Immigration

Short-term Temporary Skills Shortage (TSS) Subclass 482 visa holders who have worked in Australia during the pandemic will have access to a new Australian permanent residency pathway from July 1.

From then on, TSS visa holders will be able to apply for permanent residence through the Temporary Residence Transition (TRT) stream of the ENS (Subclass 186 Employer Nomination Scheme) visa.

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

Free drugs

Starting in July, the PBS backstop threshold for concession card holders will be lowered to $244.80.

This means that concession card holders will receive their PBS drugs for free when they reach the lowered threshold.

Car prices are skyrocketing

Changes to the luxury car tax threshold mean that next month the threshold for fuel-efficient vehicles will be increased by 6.6% to $84,916.

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

Help with childcare

“Blended families” – where both members of the couple receive the childcare subsidy for different children in their family – will automatically receive the higher subsidy from July.

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

Telstra customers in a hurry

From next month, prices for Telstra’s mobile plans will increase in line with the Consumer Price Index.

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

However, the telecom operator noted that further hikes could be on the horizon, saying that “pricing of plans will include an annual review and may increase each year.”

Read related topics:tax time

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