It’s that time of the year again. End of financial year sales, tax returns and paperwork all come to mind when June 30 hits, however there’s a whole lot of new changes that come into effect for the new financial year 2018-19.
From July 1 a slew of Federal and state tax and subsidy changes and new policies will come into play. While some are welcome, others aren’t exactly what we all hoped for. Things like power price reductions and some Federal Government tax relief will roll out automatically, while other changes will require a more proactive approach if they’re to be effective.
The 32.5 per cent tax Bracket has been lifted from $87,000 to $90,000 and the minimum wage will get a 3.5 per cent increase. There will be a new rebate for people earning up to $125,000 a year. The low and middle income tax offset will be paid as part of the tax return for the year 2018-19 and will mean between $200 and $530 extra depending on how much someone earns.
However, the planned changes to penalty rates hit those working in retail, hospitality, fast-food industries and pharmacy in the hip-pocket. Hospitality workers will experience a 10 per cent drop in penalty rates, retail workers a 15 per cent drop, with those who are casual being slugged an extra 5 per cent decrease. Those working in pharmacy will experience a 15 per cent drop and fast-food workers a 10 per cent drop in penalty rates, while companies with a turnover of between $25 million and $50 million will now pay a lower tax rate of 27.5 per cent.
GST will now be applied to every online purchase from overseas, irrespective of price. The green and gold kangaroo Australian food labels will also now show the percentage of Australian produce in the item, and from July 1, Queensland and Western Australia will ban single-use, lightweight plastic bags from major retailers, bringing the states into line with the ACT, South Australia and Tasmania.
Retailers will no longer be able to supply single-use lightweight plastic shopping bags less than 35 microns in thickness.
The changes to superannuation rules that encourage older Australians to downsize their homes and boost their retirement funds will come into effect, which means people aged 65 years and over will be able to contribute up to $300,000 from the sale of their family home to their super. First-home buyers who have been saving up since last year via the ‘first home super saver scheme’ will now be able to access up to $15,000 of their voluntary contributions for a deposit.
Parents receiving Family Tax Benefits could have up to $28.28 a fortnight cut from their payments if their children aren’t immunised.
In south-east Queensland and South Australia Origin Energy will reduce residential power bills by 1.3 per cent and small business power bills by 4 per cent, while AGL plans to reduce their residential power bills by 1.6 per cent for NSW, Queensland and south Australia.
And Glasses will no longer be allowed in passport photos