EOFY brings many changes

The new financial year brings with it many money changes, such as superannuation changes, new taxes and price increases. Here are the ones that may affect you starting 1 July.

Changes to super
If you’ve been following YourLifeChoices, then these changes will come as no surprise to you, as we’ve been reporting on them since they were announced. The $1.6 million transfer cap, end of tax exemptions and reduction of concessional caps and non-concessional contributions are the ones that will affect most of you. For Debbie’s comprehensive breakdown of the changes, read Time to review your super?

Power prices to soar
From 1 July, New South Wales, South Australia and Queensland residents will see their power prices increase by up to 20 per cent. But the hardest hit will be ACT residents, with their combined electricity and gas bills expected to increase by around $580 per year. Victoria and Tasmania operate under different tariffs with increases already in place.

Netflix tax
All purchases of international digital products and services will carry an extra 10 per cent levy designed to even the playing field for local businesses.

Minimum wage increases
For those of you still working, the national minimum wage is set to increase by 3.3 per cent – the biggest pay-rise for low-income workers in six years.

Bulk billing incentives
Since the Federal Government unfroze the Medicare rebate in last month’s Budget, there will be extra incentives for patients to be bulk billed. The move means doctors receive a slight pay rise, but the rebate for standard doctor visits won’t kick in until July 2018 and specialists until 2019.

Cheaper medicines
A deal with pharmaceutical companies means that some generic medicines will be less expensive.

More taxes for property investors
Some state and federal changes will mean that local and foreign property investors will cop more taxes and surcharges. From 1 July, the Foreign Investor Surcharge Duty in NSW will be doubled from four per cent to eight per cent, and the annual land surcharge for foreign buyers will rise from 0.75 per cent to two per cent a year. While in Victoria, off-the-plan stamp duty concessions for non-residing home buyers will affect local and foreign property investors.

Will you be affected by any of these changes, either directly or indirectly?

Written by Leon Della Bosca

Leon Della Bosca has worked in publishing and media in one form or another for around 25 years. He's a voracious reader, word spinner and art, writing, design, painting, drawing, travel and photography enthusiast. You'll often find him roaming through galleries or exploring the streets of his beloved Melbourne and surrounding suburbs, sketchpad or notebook in hand, smiling.
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