1 July Brings Big Changes: Wage Hike, Parental Leave Boost, and Stricter Road Rules

As 1 July draws near, significant reforms are set to impact millions of Australians, ranging from wage increases to new road safety measures. This is the latest round of changes designed to improve the financial well-being of low-income workers and families, alongside stricter rules for drivers.

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Australia 1 july changes
Australia 1 july changes. credit : shutterstock | en.Econostrum.info - Australia

As 1 July draws near, several key reforms are set to take effect, impacting Australians across various sectors. With a focus on improving the quality of life, these changes come at a time when many are grappling with the ongoing cost-of-living pressures.

Among the most significant adjustments are wage increases, enhanced parental leave, and stricter road safety measures. These reforms aim to support low-income workers, families, and improve road safety. Here’s an overview of the key updates that will shape the new financial year.

Minimum Wage Increase and Superannuation Adjustments

Starting on 1 July, millions of Australians will see a boost to their income. According to the Fair Work Commission, the minimum wage will rise by 3.5%, increasing to $24.95 per hour, or $948 per week for full-time workers. 

This wage hike will benefit approximately 2.6 million workers, including those in the lowest-paid industries. The change is part of ongoing efforts to address the pressures faced by low-income workers in an economy where inflation continues to affect purchasing power.

In addition, the superannuation guarantee will also increase to 12%, marking the final step in a five-year plan designed to boost retirement savings. By this measure, individuals earning $100,000 annually could see an additional $125,000 in superannuation by the time they retire, securing a more comfortable financial future.

Changes to Parental Leave and Road Safety

In an effort to support working parents, the federal government has expanded the paid parental leave scheme. Parents will now be entitled to 120 days, or 24 weeks, of paid leave, with plans to increase this further by 2026. 

This extension offers greater flexibility for families and underscores the government’s commitment to supporting carers and parents in balancing work and family responsibilities. The changes will allow parents to claim leave up to three months before their child enters their care, helping ease the financial burden during the early stages of parenthood.

On the road safety front, new AI-powered surveillance cameras will be rolled out across Australia to catch drivers using mobile phones behind the wheel. The penalty for such behaviour is steep: fines of up to $1,209 and the loss of five demerit points. 

Other state-based road rule changes are also expected, with stricter penalties for not wearing a seatbelt in New South Wales and speed limit reductions in parts of Queensland. These changes reflect a growing concern about road safety and aim to deter reckless driving habits.

Additional Key Reforms: Disability, Pension, Centrelink, and More

In addition to the wage and parental leave reforms, several other important changes will also take effect on 1 July. The National Disability Insurance Scheme (NDIS) will see some services’ rates lowered, such as physiotherapy sessions, which are reduced by $10 to $183.99 per hour. Psychology session prices will be standardised at $223.99 across all states and territories. 

For pensioners, while the pension rate itself remains unchanged, increased income and asset thresholds will allow more people to qualify for benefits. Couples will see a fortnightly increase of $34.50, while singles will receive $22.50 more. 

Centrelink recipients will also benefit from a 2.4% increase to their payments due to regular indexation. The government is introducing a program offering a 30% discount on home battery systems, making them more accessible to households looking to install energy storage solutions. 

Additionally, paid practical placements will now be available for tertiary students in fields like nursing, teaching, midwifery, and social work, providing them with $319.50 per week during their placements. 

Lastly, individuals with cystic fibrosis will see the cost of life-saving treatments significantly reduced under the Pharmaceutical Benefits Scheme, with a maximum price of $31.60 per script, or $7.70 for those holding a concession card.

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