A Heap of EOFY Changes Start Today. Here’s What Young People Need to Know.

Did someone say more money?

Today (1 July) marks the start of the new financial year. It also means that a heap of new laws have come into effect as of today that change everything from your tax return to more money in your super (winning!).

Ngl though, it can all be pretty confusing. To help, we’ve broken it down so you can understand what’s happening and whether you will stand to benefit from the changes or not.

Note: if there are some words that go way over your head here, check out our explainer on tricky financial words, it’s a proven lifesaver.

$1,080 tax back for some.

Earlier in June, the government passed a $1,080 tax cut. Don’t get too excited though, they’re not going to be giving you $1,080 straight into your pocket like some people thought (I know, it’s a bummer).

It’s all dependent on how much you earn according to Mark Chapman, director of tax communications at H&R Block.

“Basically, if your income is less than 37,000, you will receive $255. If your income is between $37,001 and $48,000, the tax offset will increase steadily to $1,080,” Chapman told news.com.au.

“Between $48,000 and $90,000, you will get the maximum of $1,080.”

If you earn more than that, the tax offset will slowly phase out with the more you earn.

Mo' money for your retirement.

Yeah, we get it, you’re young and the last thing you want to think about right now is superannuation and how much you have in it.

Give it 10 years and that’ll change. As of today, your employer’s contribution to your super fund has gone up from 9.5 per cent to 10 per cent. More money in your super = a happy future you, trust us.

A pay rise for some of y’all.

For some of you, today means you're gonna get more $$$ in your pay cheque. Earlier this month, the Fair Work Commission ordered a 2.5 per cent pay increase to the minimum wage, meaning as of today you could get your hourly rate bumped up to $20.33 an hour.

We say 'could' ‘cos the rollout is going to be staggered for workers in industries hardest hit by the COVID-19 downturn. If you’re working in retail, you won’t see a bump in pay until September. Likewise, anyone in tourism, fitness and aviation will have to wait until November.

Medicare is changing.

From today, the federal government has brought in its changes to the Medicare Benefits Schedule. More than 900 health services and procedures will now be ineligible for government rebates or face a reduction. 

This includes private surgeries like orthopaedic, general and heart surgery. To get the full rundown on these changes, check out our article on what the Medicare changes mean for young people.

That’s everything you need to know about the money changes in your life that matter. If you’re wanting more info on tax time, take a look at our How Tax In Australia Works article or jump over to the Dollars and Sen$e page for anything and everything finance related.

As always, we recommend chatting with your parents, trusted family members or a financial expert before making any financial decisions.

Header Image: NBC