Australians are facing a raft of changes this new financial year that could impact their earnings, spending, savings, and lifestyle. From the rising superannuation and changes to the minimum wage to higher energy bills and extended parental leave policies, July 1 has carried with it key changes that need to be on your radar.
What’s important is to recognise when and how those changes occur and to respond with wisdom so that you protect yourself financially and make wise decisions moving forward, especially when it comes to your home loan, household budget, and longer-term planning. When it comes to Australians navigating these phase changes,
Superannuation Guarantee Rises Again
Since July 1, the rules about superannuation have changed a little. The super guarantee rate, which is the amount of money your employer has to put into your a pension, has gone up to 11.5%. This payment is based on your regular pay, and all eligible employees should get it.
The rate will go up again to 12% by July 1, 2025, so there will be another bump.This can help you save for retirement, but it can also change how much money you take home or how much cash your business has. BeSmart Finance helps employees and business owners understand these changes so they can keep their money in order and make better decisions about loans and budgets.
BeSmart Finance partners with employees, strategists, and business owners to determine what changes in government policy mean for monthly income and cash flow. If you are finding your paycheck stretched, it could be the right time to make some changes to the type of loan products you are using or test out a refinance.
Minimum Wage Increase Offers Relief
The minimum wage will increase 3.5 % after the Fair Work Commission gave the pay raise the tick of approval. The hourly wage is now $24.95 dollars, and a full-time worker can expect to receive a weekly wage of 948 dollars. The increase is good news for millions of Australians who work in hospitality, retail, aged care, and construction.
That is progressive, particularly in times of rising living costs for households on lower or middle incomes. But it also presents a golden opportunity to rethink financial goals.
BeSmart Finance has plenty of clients using the wage rise to make additional repayments, pay off their loan quicker, or start saving for further property investments. Our certified advisers guide you as you invest new funds in better strategies.
Paid Parental Leave was extended:
There’s also a big win for families, with paid parental leave to be extended to 24 weeks by July 2025. It eventually will stretch to 26 weeks by 2026. Parents will also have access to more flexible options around shared leave and partner-specific days.
Electricity Bills Set to Rise:
Electricity prices will rise for households in New South Wales, South Australia, and Southeast Queensland. This is because of a change in the Default Market Offer from the Australian Energy Regulator, which applies to standing offer rates.
Such price hikes can squeeze the average Australian budget. Be Smart Finance can jump in with ways to help you share the load if power bills and cost-of-living pressures are rising. We provide homeowners with the flexibility to restructure their loans, which can lower monthly payments or help them obtain better interest rates, giving you more control during uncertain times.
Seize the Reins before the Costs Go higher:
In the aftermath of this year’s budget, it is important to take a moment to reflect on the implications of these changes in public policy, including on your family budget. Every monetary move made by the government, whether it is related to superannuation, wages, family planning, or bill rises, has a ripple effect.
If you’ve been considering reviewing your mortgage or haven’t looked at your loan terms in a while, now is the ideal time. Be Smart Finance has special review sessions where we help you to see where you stand at the moment, where you would like to go, and what the lending options are that are real and hassle-free and are tailored to your future.
Contact BeSmart Finance now to start planning and borrowing smarter. Our team listens to your past and present financial history and helps you make the best decisions to ensure your lifestyle remains aligned with your goals.Speak with our expert team at 0408 659 819 today! Visit our website at www.besmartfinance.com.au to explore more. You can also book a one-on-one consultation at your convenience by clicking here.
