As of 1 July this year, various changes are expected to occur in the laws of Australia.
The changes that individuals will face in Australia at work and at home are outlined below.
Finance and Tax
1. Income Tax Relief
Taxpayers will be given tax breaks through the introduction of the Turnbull government’s 7-year income tax revision policy. It will be a step-by-step policy whereby the first phase of the policy will be to reduce tax liability from $200 to up to $530.
Following from this, in the second phase of the policy, in addition to the tax rate of 32.5%, it will raise the upper tax bracket from $87,000 per year to $90,000 whereby approximately 3 million workers will experience up to $135 in tax cuts and from 1 July 2022, approximately 1.8 million taxpayers will benefit up to $1,350 by raising the tax rate to $120,000. In the third and final phase, the 37% tax break will be abolished and, in its stead, the 32.5% tax rate will be applied for those earning up to $200,000 annually.
2. Property and GST
In May last year, the Federal Government announced that through the revision of the GST Act, it would strengthen the compliancy with the Act, requiring buyers of new residential property or land to pay GST (Goods and Services Tax) directly to the ATO. In the past, the system required the Purchaser to pay the Contractor the amount payable plus GST however, the Contractor often failed to pay their GST properly.
However, most individuals purchasing property will go through real estate specialists such as Solicitors or Conveyancers, therefore if you’re familiar with these revisions, you do not have to worry. As of 1 July 2018, these amendments will take effect.
3. GST and Online Shopping
Under the new online GST related laws introduced by the Turnbull government, businesses seeking to impose GST on purchases under $1,000 per year must have annual sales of $75,000 or above.
Family Care
1. Family Payments
If you receive Family Tax Benefit (FTB) Part A and income support payment (income allowance), however due to your high income you are unable to receive income support payment, you can calculate the rate of FTB A from your income test.
Note the things that must be taken into consideration, whilst no income subsidy is being paid, the amount of FTB Part A payment may be reduced or suspended and if the child is no financially independent, the rate of payment to the child may also vary. If the child’s vaccination or health care requirements are not being met, for every child, a maximum reduction of $28.28 will occur for two weeks.
2. Childcare
From 2 July, parents will be able to use the new Child Care Package at Child Care Subsidy (CCS). The new Child Care Subsidies (CCS, Child Care Assistance) is a system that replaces the current Child Care Benefit and Child Care Rebate systems.
Through the support of Child Care Safety Net, the CCS is designed to be simpler than the multiple subsidy systems currently in place which will aid low-middle income earning families. In order to be qualified for CSS, you must have children under the age of 13 who do not attend high school. Additionally, vaccination requirements must be met and the parent o carer must meet Australian residential requirements.
3. Payments for Carers
From the start of July, the government will be providing Carer Supplement and Child Disability Assistance Payments. If you are eligible, by 31 July money will be credited into your designated bank account however, if you have not received such payment, please check your Centrelink Account online.