With a new financial year quickly approaching, Australians are bracing for a wave of changes that could offer a glimmer of hope from July 1 amid the relentless cost of living pressures. For homeowners, buyers, and renters alike, these updates may provide some much-needed financial relief.
With mandatory employer superannuation contributions increasing, individuals can look forward to a more robust retirement fund, potentially easing future financial burdens.
The rise in the national minimum wage is set to bolster the income of many, offering a reprieve for those struggling to keep up with mortgage repayments or rent.
For Centrelink recipients, a slight increase in payments could mean the difference between financial strain and stability, particularly for those balancing housing costs.
While some residents may face higher electricity bills, the federal Government’s solar battery rebate present opportunities for savings that could alleviate the financial strain on households.
All up, some homeowners and renters could pocket thousands of dollars more a year,
Here’s a handy list of what to expect from July 1.
SOCIAL
Minimum wage boosted to nearly $25 per hour
The Fair Work Commission revealed earlier this month how much the national minimum wage would increase by.
It’s currently $24.10 per hour, which works out to $915.90 per 38-hour week or $47,626.80 per year.
But this will be hiked by 3.5 per cent on July 1 to $24.90 per hour, or $948 per week.
All up, those on a minimum wage could pocket $1605 more over the coming 12 months through the promised wage boost alone.
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Centrelink customers can expect a raft of pay increases from July 1. NCA NewsWire / Mark Brake
Centrelink payments and thresholds are getting hiked
Millions of Centrelink recipients will see a small increase in their payments from July 1 as part of regular indexation to ensure the cash boosts keep up with the rising cost of living.
That includes payment increases for families receiving the Family Tax Benefit A and B, the Multiple Birth Allowance, and the Newborn Supplement.
Around 2.4 million Australians will benefit from the latest round of indexation, which will see a range of rates, thresholds and limits increase by 2.4 per cent.
That equates to payment increases of between $4.48 to $48.
Income and asset thresholds will also be increased for recipients of the Age Pension, Disability Support Pension and Carer Payment.
Medicare Levy Surcharge thresholds go up
This is an extra tax you have to pay if you earn over a certain amount and don’t have private health insurance.
Singles who earn over $101,000 and families who earn over $202,000 and don’t have appropriate hospital insurance will now have to pay the surcharge.
This is up from $97,000 and $194,000, respectively.
Paid parental leave goes up
Paid Parental Leave (PPL) will increase to 120 days or 24 weeks after being set at 110 days or 22 weeks.
If your child was born after July 1 last year, you’ll be able to get the current rate of the Centrelink payment.
However, if your child is born after July 1 this year, parents will benefit from the extension.
Not only that, but superannuation will start being paid on PPL.
This means parents getting the support will get an extra 12 per cent of their payment as a contribution to their super fund.
ELECTRICITY
Cost of Living Support
From 1 July 2025, every household and around one million small businesses will see another $150 in rebates automatically applied to their electricity bills in quarterly instalments, on top of the previous rebates already being rolled out to Australian households and small businesses.
Cheaper Home Batteries Program
It’s no secret that the cost of electricity is about to go up but those who can afford it could find some relive through the Australian government’s Cheaper Home Batteries Program. The initiative, which launches on July 1, offers a 30 per cent upfront discount on eligible battery systems. This program, delivered through an expansion of the Small-scale Renewable Energy Scheme (SRES), aims to incentivise the uptake of solar battery storage for households, small businesses, and community facilities.
The discount is expected to be provided by solar and battery retailers and installers.
Home batteries can significantly reduce electricity costs, with potential savings of up to 50-80 per cent off your power bill, according to Solar Battery Group.
For example, a household with moderate energy usage and a 10kW solar battery might save over $1400 per year and see a return on investment within 10 years.
Jonathan Prendergast displaying his battery that is used to power his home in Como during peak times. Photographer: Ted Lamb
HOME OWNERSHIP
Universal 5 per cent deposit
From January 1, 2026, income limits under the First Home Buyers Guarantee will be abolished, allowing any first homebuyer to purchase a home with just a 5 per cent deposit without having to pay Lenders Mortgage Insurance.
Prices on eligible properties will also be lifted and there will be no income caps or participant limit. It means homeowners on a limit budget will be able to get their foot through the door faster with just $30,000 in savings needed for a $600,000 home.
Smaller mortgages through Help to Buy
Labor’s Help to Buy shared equity scheme, where the government covers up to 40 per cent of a home’s cost that first home buyers can buy out at a later date, is said to be expanded later this year.
Smaller mortgages mean lower repayments and homebuyers will also be able to gradually buy out the government’s stake over time.
Rent relief
Labor’s Commonwealth Rent Assistance scheme will continue in the new financial year. The initiative is a non-taxable Australian government payment designed to help eligible individuals and families with the cost of renting in the private or community housing market. It’s paid as an add-on to existing social security payments like pensions, allowances, or Family Tax Benefit Part A. The amount of CRA received is determined by income, rent paid, and household circumstances.
CRA is paid at a rate of 75 cents for every dollar of rent paid above the threshold, up to a maximum amount that varies based on household type.
Assistive Technologies and Home Modifications Scheme
This scheme will provide funding for individuals to access assistive technologies and home modifications to support independent living at home.
There will be 3 funding tiers for assistive technology and 3 funding tiers for home modifications ranging between $5000 and $15,000.
Renters can also expect to walk away with more money in their pockets.
CONSTRUCTION
Getting more Aussies into their own homes
To meet ambitious housing targets, Labor is looking to incentivise more people into trades.
This mean investing $78m to fast track the qualification of 6000 tradies to help build more homes across Australia.
From July 1, 2025, eligible apprentices will also receive $10,000 in incentive payments, on top of their wages, over the life of their apprenticeship to work in housing construction.
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