The new fiscal year is fast approaching and a number of things need to be revamped.
It’s a big milestone in the middle of the year when a lot of policies go into effect that will impact your health, your wages, and even the price of your next craft beer.
Here’s what you need to know for July 1, 2021.
Pensions will go up, some wages will go down
From the start of the new fiscal year, working Australians will receive a 0.5% increase in their pension fund.
The legislation requires the super to drop from 9.5% to 10% as of July 1, then 0.5% each year, until it reaches 12% by 2025.
The pension guarantee is the mandatory amount that employers must contribute to the retirement savings of their workers.
Workplace pensions spokesman Stephen Jones said the average 30-year-old worker would be pocketing an additional $ 80,000 to $ 100,000 in super under the change, and that would work out to about an additional $ 6 per week .
The downside is that some workers will get a pay cut, with employers drawing on their base pay to make up the difference.
Workers at major Australian companies, including Telstra, AGL and ANZ, have revealed that some will be paid less under the new change.
Telstra and ANZ told news.com.au that only senior positions suffered a pay cut.
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Other changes to the retirement pension
This is not the only change for your super.
The rule that prevents workers who earn less than $ 450 a month from receiving a retirement pension should be removed.
This means that no matter how much you earn, you are entitled to the super.
This is the threshold which means that almost twice as many women as men do not get a super contribution when they work in precarious part-time jobs.
The change is supposed to start on July 1 as long as the law receives royal assent.
Thousands of Australians owed up to $ 1,080 in tax returns
This handy tax break is heading into your pocket in July, with up to $ 1,080 up for grabs.
Low and middle income tax compensation is available to all taxpayers whose income does not exceed $ 126,000.
The amount available varies depending on your income.
You don’t need to fill out anything on your tax return to receive it; simple accommodation is sufficient.
Mark Chapman, director of tax communications at H&R Block, previously told news.com.au: “Basically, if your income is less than $ 37,000, you will receive $ 255. If your income is between $ 37,001 and $ 48,000, the tax deduction will steadily increase to $ 1,080.
The tax stay has been extended for a year – leaving the painful decision to reduce it until after the federal election.
The policy is expected to benefit some 10 million Australians at a cost of $ 7.8 billion from government coffers.
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Medicare discounts to update, add or remove
About 900 Medicare Benefits Schedule (MBS) items with discounts related to private surgery are expected to change after a review of the 5,700 Medicare discounts.
All kinds of changes could be announced that affect medical procedures, including general surgery, orthopedic surgery, and cardiac services.
Initial estimates suggest that this could result in up to $ 10,000 in additional costs per patient.
The MBS is a list of medical services that the government subsidizes through Medicare to reduce costs.
The exam in the MBS ran from 2015 to 2020.
Tax stay for owners of small and medium-sized businesses
Corporate tax that small and medium-sized businesses have to pay will drop at 25 percent.
A company is entitled to this stay if its annual turnover is less than $ 50 million.
The reduction has been in preparation for several years.
Between the 2017-2018 and 2019-2020 revenue years, companies had to apply for the tax reduction.
Businesses were required to pay a 27.5 percent tax when the policy began.
By 2020, that number had been reduced to 26% and now it is reduced again.
Salary increase for frontline workers in NSW
NSW workers on the front lines of the coronavirus pandemic will benefit from a long overdue pay rise in the coming fiscal year.
They will receive a 1.5 percent pay rise.
In June of last year, a planned salary increase for 410,000 civil servants was suspended for 12 months.
The government cited fears of job losses as the reason for the freeze.
They saved about $ 3 billion by delaying wage increases.
However, Gladys Berejiklian’s decision was criticized by the unions.
This prompted the government to offer workers a one-time stimulus payment of $ 1,000 that is expected to cost $ 200 million.
At the time, it was an insulting gesture.
Boost to the arts sector
Tax compensation for producers of the Covid-19 response package is expected to boost the arts sector in Australia.
Tax relief will benefit producers making feature films or television series in the Australian entertainment industry.
The package gives producers a 30 percent tax refund.
Productions must cost at least $ 1 million to be part of the package.
The stimulus applies to a production that meets all the eligibility conditions and begins filming from July 1 on Australian soil.
Stay on craft beer
About 1,000 small brewers and distillers will receive $ 255 million in tax relief under the Excise rebate scheme for manufacturers of alcoholic beverages.
The government is more than tripling the ceiling on the excise exemption from $ 100,000 to $ 350,000.
Prior to the July 1 change, qualifying brewers and distillers were getting a 60% rebate, up to $ 100,000.
From now on, 100% of their excise funds will be covered.
“There will no longer be an obligation to pay excise duties,” said a government statement.
It is hoped that the reprieve will lead to lower prices for craft beer.
Superior council rate
They will have to pay a two percent increase in counseling fees.
In the last fiscal year, taxpayers have experienced a 2.6 percent increase.
In fiscal year 2022-2023, it is expected to increase by another 2.5%.
Residents of the greater Sydney area are going to be hit by a double whammy as public transport costs will rise as well.
Opal tariffs will increase by 1.5 percent to offset inflation, NSW Transport said.
Individual trips will cost 1.5% more in the new fiscal year, starting July 5. However, there will be no change to the weekly travel limit of $ 50 or the daily limit of $ 2.50 for retirees.
Buses or tram journeys less than 3 km in length will not be affected by the price increase.
Victorian businesses that struggled during the state’s extended lockdown last year have until the end of this fiscal year to secure a grant for their business.
the Amendment to Treasury laws (2020 measures n ° 5) 2020 bill passed both houses in December of last year.
It is designed to give Victorian businesses a helping hand after the severe restrictions they endured.
Victorian Business Support Grants for small and medium-sized businesses became non-taxable and non-exempt income under the bill, essentially saving them from paying taxes.
The exemption only applies to payments made to small businesses between September 13, 2020 and June 30 of this year.
As of July 1, 2021, business owners will no longer be able to benefit from this tax break if they receive a grant.
Changes in Queensland
Like NSW, Brisbane residents are considering an increase in counseling fees.
Payments to boards will increase by 3.75%, which means the average person has to pay an additional $ 15.65 per quarter or $ 1.20 per week.
It comes as Brisbane Mayor Adrian Schrinner revealed the council’s debt has reached $ 2.8 billion.
Counseling fees have not climbed as high for Brisbane residents since fiscal 2016-17, when residents saw a 4.7% increase.
Last year, municipal rates were frozen amid the pandemic.
Last chance for companies using the Instant Asset Write-off Program
This is the last chance for companies to make the most of the Instant asset write-off program.
Small and medium-sized businesses have until June 30 to use or install a business expense purchased under the rule.
This write-off is a practical tax break for businesses as it allows them to purchase an asset and immediately obtain the tax deduction.
As part of the coronavirus stimulus package announced last year, the program has grown from $ 30,000 to $ 150,000 (net of GST) for each asset.
The profit margin has also been changed as part of the coronavirus package.
Businesses with total sales of less than $ 500 million can make a tax-deductible purchase.
Previously, a business had to have sales of $ 50 million or less to qualify.
However, this only works if the company has already purchased the item as of December 31 of last year.