New fiscal year: all changes from July 1 you need to know

The new fiscal year starts on July 1, and that means a long list of changes that will affect you and your family.

Good news is on the way, including money raises for families and a pension increase.

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But many bills are also expected to rise.

Family benefits

About 1.4 million families will receive a welcome financial boost, with increased payment for those who receive the family tax benefit sharing A and B.

Those who receive Part A family tax benefits, “with a child under 13 get up to $200 extra in their payments, and anyone with a child over 13, up to $250,” said Finder’s Graham Cooke.

The pressure on the cost of living will be eased by higher family payments. File image. Credit: Nazar Abbas PhotographyGetty Images

There is also an additional childcare allowance for people with more than one child.

“It will be the highest payment for subsequent children, which should mean higher income for most families receiving that benefit,” Cooke says.

For those receiving Part B Family Tax Benefit, there will be an increase of as much as $164.25 per year when a family has a youngest child under five.

For those Part B Family Tax Benefit families with a youngest child ages five to 18, they receive up to $116.80 more per year.

The changes are expected to affect more than 1.4 million families, said Amanda Rishworth, minister for social services.

“The indexation process complements the levers we use in portfolios to address the rising cost of living,” she said.

Medicines

There are also changes to the Pharmaceutical Supplements Scheme.

The safety net threshold is lowered for both general patients and concession card holders, allowing more people to pay less — or get their medications for free.

Many drugs are about to cost less under the PBS. Credit: Morsa imagesGetty Images

Effective July 1, the PBS Safety Net threshold for concession card holders will be lowered to $244.80, Services Australia said.

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

This advantageous Safety Net Price is valid until 31 December 2022.

pension

The pension will increase by half a percent to 10.5 percent from 1 July.

So a bigger investment in your future from your employer – but what does it mean for you?

“The average 30-year-old should see about $66,000 rise by retirement age,” says financial expert Vanessa Stoykov.

“When you consider what $66,000 can do for your life when you’re older — that changes the game.”

The pension will increase as of 1 July and your pension savings will increase. File image. Credit: Image sourceGetty Images

There are also new pension rules for people with the minimum wage.

Unless you are under 18 and working less than 30 hours a week, all employees, however little they earn, are now eligible for guaranteed super contributions.

“This is a big win for anyone who works part-time — whoever (earns) dollars also gets a super advantage,” Stoykov says.

Energy costs

The energy crisis is about to hit us all again, with massive increases in power prices being passed on from July 1.

Residents of New South Wales can expect a rise of up to 18 per cent, those in Queensland and Tasmania can expect a rise of around 12 per cent, South Australians can expect a 9 per cent increase and Victorian flow will increase by 5 per cent.

The smallest increases will occur in the Northern Territory and Western Australia, where prices will increase by about 2.5 percent.

Changes in energy prices in Australia from July 1. Credit: sunrise

“Finder’s research found that household stress caused by energy bills has doubled in the past month,” Cooke said.

“It does mean it’s a really good time to contact energy suppliers in your area because it’s a really good time to see if you can get a better deal.”

Good news if you live in the ACT, your energy bill actually drops by 1.25 percent.

phone bills

If you’re with Telstra, your bill will go up in July – and other companies are expected to follow suit.

“You’ll often find that smaller, less-named providers offer much better value,” Cooke advises.

Many people’s phone bills are about to rise. Credit: Anita KotoGetty Images

“For example, Telstra customers can switch to Boost, a company owned by Telstra(and) running on the Telstra network, but it’s a lot cheaper per month if you’re on a budget.”

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