The new financial year is now here, and there are a few important changes that are coming into effect.
Here’s what you need to know for the new 21/22 financial year.
SUPERANNUATION RISE & SALARIES MAY FALL
From today, Australian’s will receive a 0.5% boost to their Superannuation Fund. Legislation requires your Super contribution to increase from 9.5% to 10% this new financial year, rising 0.5% every year till 2025 when it hits 12%.
This means an average 30year old worker is set to gain an extra $80,000 to $100,000 in their Superfund under this change which is equal to an extra $6 per week.
The downside however is that some industries may see their salaries fall for employers to make these extra contributions.
It’s been revealed that workers from major Australian companies such as Telstra, AGL and ANZ will be paid less under these changes. However, both Telstra and ANZ commented to news.com.au that only senior management positions would experience these cuts.
OTHER SUPERANNUATION CHANGES
The rule that prohibits workers earning less than $450 a month from receiving Superannuation is set to be abolished as well, meaning that everyone who works, is entitled to Superannuation, regardless of how much they earn. This change is due to begin from July 1 2021, subject to the legislation being approved by Parliament.
THOUSANDS OF AUSTRALIANS WILL RECEIVE $1080 IN TAX RETURNS
There is a juicy tax return on its way to thousands of Australians bank accounts and here’s how you get it.
If you earn less than $37,000 a year, you’ll receive $255, and it you earn between $37,001 and $48,000 your tax break will rise steadily to $1080. Please note this tax break is only for individuals who earn up to $126,000 a year.
And the best part is, you don’t need to complete anything extra with your tax return to receive this, simply lodging you tax return is enough.
This policy is set to benefit some 10 million Australians at a cost of $7.8 Billion from the Government’s coffers.
There are approximately 900 Medicare Benefits Schedule (MBS) items (related to private surgery) that are due to change after a review of all 5,700 Medicare Rebates.
Many changes are due to be announced, which affects medical procedures including general surgery, orthopedic surgery, and cardiac surgery which may lead to an increase of up to $10,000 per patient, of extra fees.
Any small to medium business than has an annual turnover of less than $50 million will have their corporate tax payment requirements lowered to 25%.
This reduction has been many years in the making, with companies having to apply for the decrease between 2017-2018 and 2019-2020.
Companies had to pay 27.5% when the policy first began.
By 2020, that number dropped to 26%, and now has dropped again.
PAY RISE FOR NSW FRONTLINE WORKERS
NSW workers on the front lines of the Coronavirus Pandemic will receive a well-deserved pay increase this financial year of 1.5%.
In June 2020, a planned pay rise for over 400,000 Government employees was put on hold for 12 months for fear of job loss. The Government saved an estimated $3 billion by delaying this increase which was slammed by unions forcing the NSW Government to offer workers a one-off $1,000 stimulus payment which at the time, was labelled as an insulting gesture.
There are many more updates on the horizon so for more information, check out the 2021-2022 Budget website here: https://budget.gov.au/index.htm .