If you’ve been feeling the pinch at the checkout, the petrol pump, or when opening your latest electricity bill, you’re not alone.
The cost of living has been a hot topic across Australia, and the Albanese government is promising some much-needed relief starting today, 1 July.
Whether you’re a minimum wage earner, a new parent, a tradie apprentice, or part of a family juggling rising expenses, there’s a good chance you’ll see a little extra in your pocket soon.
What’s changing, and who benefits?
Let’s break down the key changes and what they mean for you:
1. Minimum wage and award wage increases
Australia’s 2.9 million workers on minimum wage or awards are set for a 3.5 per cent pay rise. This is a welcome boost, especially as it outpaces the current inflation rate of 2.4 per cent.
The new minimum hourly rate will be $24.95, which translates to $948 a week or $49,296 a year for full-time workers.
For the 200,000 Aussies on the minimum wage, that’s an extra $1,669 a year.
While the Fair Work Commission made the official call, the government is keen to take credit for delivering on its election promise to support working Australians.
If you’re on an award or minimum wage, check your next payslip – you should see the difference.
2. Superannuation and paid parental leave improvements
From 1 July, compulsory employer super contributions rise from 11.5 per cent to 12 per cent. This might not sound like much, but over time it can make a significant difference to your retirement savings.
And for the first time, super will also be paid on government-funded paid parental leave, helping new parents (especially mums) avoid a superannuation gap.
Paid parental leave itself is increasing from 22 to 24 weeks, giving families more time at home with their new arrivals.
The income limits for eligibility are also rising, with individuals able to earn up to $180,007 and families up to $373,094 and still qualify.
3. Tradie apprenticeships get a boost
If you or someone you know is considering a career in the trades, there’s more good news. New apprentices in housing construction will receive up to $10,000 in incentive payments over the course of their apprenticeship.
These are paid in $2,000 instalments at six months, one year, two years, and three years – a handy top-up to help with tools, travel, or just making ends meet while learning the ropes.
4. Family benefits on the rise
Families receiving Family Tax Benefit Part A will see the maximum payment for children under 13 rise to $227.36 a fortnight, and for those 13 and over, up to $295.82.
Family Tax Benefit Part B is also increasing, with the maximum rate now $193.34 a fortnight, or $134.96 for families whose youngest child is five or older.
5. Student debt relief
If you’re still paying off a university loan, there’s a silver lining: Labor has promised to cut student debt by 20 per cent, averaging a $5,520 reduction per person.
This is being backdated to 1 June, so you might already be in line for a smaller HECS-HELP balance.
6. Electricity rebates and future tax cuts
While the $75 quarterly electricity rebate will continue until the end of 2025, the government is already looking ahead to further relief.
From July 2026, the income tax rate for those earning $18,201 to $45,000 will drop from 16 per cent to 15 per cent, saving $268 a year.
In July 2027, it drops again to 14 per cent, bringing total relief to $536 over two years. Anyone earning above $45,000 will also benefit from these cuts.
What’s the catch?
While these changes are a step in the right direction, it’s worth noting that some relief–like the bigger tax cuts–won’t kick in for another couple of years.
And with costs like rent and insurance still on the rise, many households may find the extra cash is quickly absorbed by everyday expenses.
How to make the most of your boost
Check your payslip: Make sure your wage increase and super contributions are correct.
Review your family benefits: If you’re eligible for Family Tax Benefit, ensure you’re receiving the new rates.
Plan for the future: Consider how the extra cash can help with bills, savings, or even a little treat for yourself.
Stay informed: Keep an eye on future changes, especially the upcoming tax cuts.
Credit: 7NEWS Australia / YouTube
Your say
Are you one of the Aussies set to benefit from these changes? Will the extra cash make a real difference to your household budget, or does it feel like a drop in the ocean? We’d love to hear your thoughts and experiences.
Please share your comments below and join the conversation with other YourLifeChoices members.
Let’s help each other navigate these changing times and make the most of every dollar!
Also read: Big cost-of-living relief is on the way after Labor’s re-election—here’s what to expect
Pensioners a big fat zero it’s like we don’t exist
2.6 million Australians on the pension get nothing.
The government doesn’t care.
There were 91 Australians who earned, key word EARNED more than $1 million in total income yet paid no tax in 2022-23, according to newly released data from the Australian Taxation Office (ATO).
About time the government started going after these rich parasites and channel more money to those in greater need.
An increase in the aged pension outside of the March – September joke increase review.
John & Karl have said what I was going to say, If you are Employed and receive a Taxable Income, then you get some of this “relief”, otherwise you just get “Diddly Squat”.
Therefore as a Pensioner, these relief measures do absolutely NOTHING for me !!!
So the minimum wage is now $24.95! That is the minimum the government consider that a person can survive on. Can the government please explain then, why they consider it is acceptable for age and disability pensioners to receive just over $17 an hour, that figure includes rent assistance and the energy supplement.
Hear hear! Why should we ‘poor’ pensioners be left out in the dark?
Don’t we all have rent , electricity, food, fuel and insurances to pay, too? Of course, we do! We just don’t any relief from all these expenses.
My $5.40 per fortnight (with rent assistance) increase in March, has already been eaten up with increases in my phone & internet bill & Kayo increases – a total of $14 per month. Then there’s increases in CTP & contents insurances due in August, and that’s all before the next increase in September!
There’s one thing that I can say is that there’s a very big disparity between the prices of fuel where I live. From $1.499 to $1.929!