Updates starting July 1st: Salary, retirement fund, government benefits, and other changes

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Australia’s lowest-paid workers will receive a pay boost from 1 July, with the national minimum wage increasing by 3.5 per cent.

The new rate will be $24.95 per hour, or $948 per week, based on a 38-hour week. The Fair Work Commission decision, handed down earlier this month, affects more than 2.6 million Australians and will apply from the first full pay period on or after 1 July.

Millions of Australians will also see a boost to their Centrelink payments, with a 2.4 per cent increase to help ease the rising cost of living.

For families receiving Family Tax Benefit (FTB) Part A, the maximum rate of payment for children aged under 13 will increase to a new rate of $227.36 a fortnight. For children aged 13 or over, the rate will increase to $295.82 a fortnight.

The maximum rate of Family Tax Benefit Part B will increase to $193.34, and for families with a youngest child aged five or over, the rate will increase to $134.96 a fortnight.

The FTB has been increased annually since its introduction in 2000, under both Labor and Coalition governments.

Social Services Minister Tanya Plibersek said in a statement the payments were essential for helping families manage the cost of raising children and that indexation is one way the government is making sure support keeps up with inflation.

Super increase

The superannuation guarantee, which is the minimum amount employers must contribute to their employees’ super, is set to rise from 11.5 per cent to 12 per cent.

The new rate applies to all salary and wages paid on or after 1 July, even if the work was performed before that date.

The paid parental leave superannuation contribution will apply to parents receiving government-funded parental leave pay on or after 1 July.

Paid parental leave overhaul

From 1 July, Australian families will benefit from a more generous paid parental leave scheme, with the amount of government-funded leave increasing from 20 to 22 weeks.

This is part of the federal government’s plan to progressively expand the scheme to 26 weeks by July 2026, the equivalent of six months of paid leave. Once fully rolled out, families will receive around $24,000 in total support following the birth or adoption of a child.

The policy is designed to give parents more time at home with their newborns and greater flexibility in how leave is taken. Parents can choose to take leave separately or at the same time, and spread it across two years, allowing for a staggered return to work or shared caregiving.

Immigration changes for skilled workers

The government has made changes to Australia’s skilled visa system in an effort to reduce worker exploitation and attract talent.

A new Core Skills Occupation List will replace the existing Skilled Occupation List, focusing on roles with genuine shortages.

Employers will have to meet stricter criteria, including offering market salary rates and proving they’ve advertised the job locally.

The Department of Home Affairs also announced that income thresholds for skilled visas will increase by 4.6 per cent.

This change will not apply to existing visa holders and nominations lodged before 1 July 2025.

Road rules get tougher

NSW will introduce harsher penalties for drivers using their mobile phones.

From 1 July, those caught using their phone behind the wheel, even while stationary at traffic lights, can be fined up to $1,209 and lose five demerit points.

In Victoria, the road rule requiring drivers to slow down to 40 km/h for emergency responders will now include tow truck, roadside assistance and incident response workers.

Queenslanders will see a 3.4 per cent hike in vehicle registration fees as well as traffic fines.

Nationally, AI-powered surveillance cameras capable of detecting mobile phone use will be rolled out, as governments crack down on distracted driving.