The 1 July tidal wave of changes affecting your finances

A raft of changes are coming into effect from 1 July – here’s what the new policies will mean to your hip pocket.

The start of a new financial year brings an enormous number of changes… everything from superannuation and childcare to pay rises and paid parental leave.

RateCity.com.au has compiled a list of major changes that could see a material impact to your bank account.

Key changes include:

Increase to the childcare rebate (from 10 July).
Release of 50,000 new places in the Home Guarantee Scheme with wider eligibility conditions.
Increase to electricity prices up to 25 per cent.
Increase to the Super Guarantee from 10.5 per cent to 11 per cent.
Increase the Age Pension Age to 67.

National changes that could affect your hip pocket 1 July 2023

But wait, there’s more…

NSW changes from 1 July 2023

Queensland changes from 1 July 2023

ACT changes from 1 July 2023

How to make the most of any extra cash

If you do find yourself sitting on a little windfall after the 1 July changes, don’t waste it. Use your extra cash to:

1. Pay down your debts

Trying to get ahead while you still hold debt is like pouring water into a bucket with a hole in it. Plug the bucket first by getting rid of any excess debt you’re carrying.

Some debt reduction methods to try:

2. Invest in your education

Any qualification that will put you on a path to earning more money is a good investment in your future. You should also consider putting money towards improving your financial or property know-how as well. This might be in the form of buying books, attending seminars, workshops, a TAFE or industry qualification or even a university degree.

3. Invest in the sharemarket

Every little bit you can put towards building your portfolio counts. Setting up a regular direct debit (for example, the extra you’ll receive each month via the 1 July changes to the child care subsidy) into an ETF account is a good place to start.

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