Millions of Australians will receive a cash boost when minimum wage, superannuation and paid parental leave changes come into effect next month.
From July 1, the minimum wage will be increased 3.5 per cent, from $24.10 per hour to $24.95 per hour, affecting more than 2.6million Aussies.
The new rate will total $948 per week, based on a 38-hour work week, after the Fair Work Commission decision handed down earlier this month.
Nearly 10million Aussies will also get an automatic boost to their retirement savings next month, as the superannuation guarantee rate rises from 11.5 per cent to 12 per cent.
It means employers will pay, on average, an extra $317 into employees’ super accounts each year.
In total, that could mean an extra $132,000 in super for young Australians by the time they retire.
The federal government will also start paying super on its paid parental leave scheme, with the change applying to parents who receive parental leave pay on or after July 1.
The scheme is also expanding, with the amount of government-funded leave increasing from 20 weeks to 22 weeks on July 1 – part of the Labor government’s plan to expand it to 26 weeks by July next year.
Anthony Albanese’s government will give Aussies a cash boost when minimum wage, superannuation and paid parental leave changes come into effect next month
Millions of Australians will receive a cash boost when minimum wage, Super and paid parental leave changes come into effect next month
Also from July 1, Services Australia payments will be indexed (adjusted in line with inflation) by 2.4 per cent.
Paid Parental Leave, Family Tax Benefit A and B, the Newborn Supplement, and Multiple Birth Allowance will all receive a modest increase, affecting about 2.4million Australians.
For example, a family receiving Family Tax Benefit A will pocket an extra $5 a fortnight.
Parents with triplets will receive an extra $120 a year, while first-time parents of a newborn child will pocket an additional $48 over 13 weeks.
Minister for Social Services Tanya Plibersek described indexation as a ‘crucial way to help families when cost of living rises’.
‘Millions of recipients of social security payments will see more money in their bank account,’ Plibersek said.
However, asset limits and income thresholds will also increase by 2.4 per cent.
That means some previous recipients will become ineligible for JobSeeker Payment, Youth Allowance, Austudy, ABSTUDY Living Allowance, Parenting Payment, Special Benefit and Parenting Payment Single.
The July indexation will not impact youth and student payments, which are indexed each year in January.
