Happy New (Financial) Year!
The 1st of July marks the first day of the new financial year!
Some key policy changes that will come into effect as of today are:
- The national minimum wage has increased (now $21.38 an hour)
- Your super has increased.
The superannuation guarantee has increased to 10.5% and will rise 0.5 per cent per year, until it reaches 12% by 2025.
- Business owners - you will now need to pay super for ALL employees, regardless of how much you pay them. This is because the $450-per-month threshold for super guarantee (SG) eligibility is being removed.
- You can save for your first home using your super fund.
Under the The First Home Super Saver (FHSS) first-home buyers can use voluntary super contributions of up to $15,000 each financial year to assist with the purchase of their first home.
From 1 July 2022, the amount of eligible contributions that can count towards your FHSS maximum releasable amount across all years will increase from $30,000 to $50,000. The amount of eligible contributions that can count towards this total for each financial year will remain at $15,000
- You can contribute to your super using the sale of your house.
Those aged 60 years or older, may be able to contribute up to $300,000 from the proceeds of the sale, or part sale, of your home into your superannuation fund.
- Your power bill will rise.
It is expected that power bills will increase by 18.3 per cent in NSW, 12.6 per cent in Queensland.
- Centrelink family payments have increased.
Family Tax Benefit Part A has increased by:
Up to $204.40 per year for families with a child under 13 years
$255.50 per year for those with a child 13 years and older
Family Tax Benefit Part B has increased by:
Up to $164.25 per year for families who have a youngest child under five
$116.80 per year for those whose youngest child is aged five to 18
- The Low and Middle Income Tax Offset (known as the LMITO or lamington) is being phased out.
The Government has however increased the payment for everyone by $420, for its last year of operation.
Please contact us if you need help navigating any of these changes (07) 5335 8000
