Australia’s new rules: All the changes coming on July 1
The start of the new financial year – also known as July 1, 2018 – brings with it a raft of changes. Here’s what you need to know.
Power prices to drop
From July 1, power bills will drop slightly across the country with Origin Energy and AGL both announcing a welcome (if slight) decrease in prices.
Residential Origin customers in NSW and ACT will see no changes to electricity but prices in southeast Queensland and South Australia will drop by 1.3 per cent and 1 per cent respectively. Origin gas bills will drop by 3 per cent in NSW but not change elsewhere.
AGL customers in NSW will see electricity prices by 0.3 per cent. In Queensland, there will be a 1.6 per cent drop and a 0.4 per cent in South Australia. Gas prices will, however, increase by 1.8 per cent in NSW and 2.1 per cent in South Australia. Gas prices in Queensland will remain flat.
EnergyAustralia has yet to announce its updated prices but intend to do so shortly.
Plastic bag ban
From July 1, single-use plastic bags will be banned in Queensland, Victoria and Western Australia, which brings them in line with South Australia, the ACT, Northern Territory and Tasmania.
NSW has not banned plastic bags but most major retailers have scrapped them, bringing in a virtual nationwide ban.
Both major supermarkets Woolworths and Coles announced they will be phasing out single-use plastics.
Glasses banned on passport photos
From July 1, people will have to ditch their specs in new passport photos.
The new rule has come into place to “further strengthen the integrity of the Australian passport,” the Australian Passport Office said.
“Research has shown that glasses adversely affect passport facial matching,” the department added. “Matching is more accurate without glasses. A limited exemption for medical reasons may apply where supported by a medical certificate."
Downsizing incentives
From July 1, people aged 65 and older will be able to contribute up to $300,000 from the sale of their family home to their superannuation. The downsizer contribution can only be made for the sale of one home and is not affected by existing contributions caps.
To be eligible, the downsizer must have owned the home for at least 10 years prior to the sale and live in it as their main residence. The contribution is not tax deductible and will be considered when determining eligibility for the age pension.
Country of origin food labels
From July 1, all food packaged and imported is required to comply with the Country of Origin Food Labelling Information Standard 2016.
Although country of origin labelling has been mandatory for years, consumers have said they find the labelling confusing, such as “made with Australian and imported ingredients”.
Under the new system, labels will have to include information about where the food was produced, grown, made or packaged. Australian food will carry the kangaroo symbol and an indication of the proportion of Australian ingredients by weight through a statement and a bar
Online shopping tax
Amazon will stop shipping to Australian addresses from its international store when the government’s new online GST laws comes into effect on July 1. The new law requires businesses with annual turnover greater than $75,000 to collect GST on purchases under the current low-value threshold of $1000.
Better credit score
From July 1, comprehensive credit reporting (CCR) will become mandatory. This means banks will have to share details of positive and negative financial history with other lenders.
At the moment, most lenders only share negative information but under the new system, they will have to share positive information as well.
The CCR has been around since 2014, but the Big Four have refused to take part. Treasurer Scott Morrison has stepped in and Experts say the change will likely result in most Australians seeing their credit score increase.
Tax relief
Taxpayers will be receiving a small relief in the form of either an annual lump sum tax offset or increased tax brackets from July 1.
If you earn up to $37,000 a year you will get a maximum offset of $200. If you are earning between $37,000 and $90,000 you will get a maximum offset of $530. If you’re earning $90,000 a year you will also pay $135 less tax.
Parking fines slashed
The 10 most common parking fines in NSW will be slashed by 25 per cent, with the changes affecting zones around Barangaroo, the Sydney foreshore, The Botanic Gardens, Centennial Park, Sydney Olympic Park, and Wentworth and Parramatta Parks.
The State Government issues only 10 per cent of all parking fines, which amounts to $15 million a year compared with $172 million from local councils.
NSW Treasurer Dominic Perrottet said he was pushing councils to follow his lead in slashing minimum fines from $110 to $80.
“Fines should be a deterrent to an offence, but they also should be fair, and not used as an easy option to build a bankroll for whatever project is flavour of the day,” Mr Perrottet said earlier this month.
Minimum wage increase
Australia’s lowest paid workers will get a 3.5 per cent pay increase from July 1, with the national minimum wage to increase by $24.30 per week following the Fair Work Commission’s 2017-18 Annual Wage Review.
That brings the weekly minimum wage to $719.20, an increase from $694.90.
Family payments changes
The government has combined existing childcare subsidies into a single means and activity-tested payment from July 2. The change is expected to increase payments by as much as $1333 a year for the average child.
About 1.2 million families are eligible for the childcare subsidies, but parents must update their Centrelink details through MyGov. Under the new system, both parents must be working, studying, volunteering or searching for work at least eight hours a fortnight to be eligible.