As the new year approaches, significant changes are set to take effect in Australia starting January 1, 2025.
These alterations will impact various financial facets, including payments from Centrelink, superannuation contributions, and costs related to essential services, with varying effects on consumers’ finances.
Centrelink Payment Increases
Beginning January 1, 2025, over one million Australians will benefit from increased Centrelink payments, as part of the government’s regular indexation process.
Notable adjustments include Youth Allowance and Austudy, which will see increases of up to $30.60 per fortnight, while the Carer Allowance will rise by $5.80. Detailed lists of these adjustments are available for those interested.
Superannuation Boost
From July 1, 2025, compulsory superannuation contributions are set to increase from 11.5% to 12%. This change means employers will contribute a larger portion of employees’ salaries to their superannuation funds.
Additionally, superannuation will now also apply to parental leave pay, aligning with government efforts to enhance retirement savings.
Starting July, couples will be eligible for an extended 24 weeks of paid parental leave, rising to 26 weeks by 2026. This adjustment is expected to benefit around 180,000 families annually.
Passport Price Increase
On January 1, 2025, the cost of Australian passports will rise, consistent with annual adjustments based on the consumer price index. Currently, an adult passport for a 10-year period costs $398.
Moreover, travelers heading to the UK will be required to secure an Electronic Travel Authorisation (ETA), effective January 8, which will entail a fee of $20 and allow multiple entries for up to six months across two years.
Medicare Adjustments
Changes to Medicare thresholds will be implemented on January 1, 2025, to align with inflation. The Original Medicare Safety Net threshold will rise from $560.40 to $576, while the Extended Medicare Safety Net will increase from $2,544.30 to $2,615.50.
For concession card holders and families eligible for the Family Tax Benefit A, this threshold will rise from $811.80 to $834.50. These adjustments will determine the points at which higher rebates are applicable.
Additionally, the operating hours for Medicare’s phone service will transition from a 24/7 availability to a schedule of 7 am to 10 pm from Monday to Friday and 7 am to 7 pm on weekends, starting January 2.
Health Insurance Extras Reset
For those with health insurance extras policies, it’s important to note that benefit limits will reset on January 1, 2025. Major health insurers such as Medibank, Bupa, HCF, NIB, and HBF typically reset benefits at the year’s start.
Research by iSelect highlights that many consumers have not fully utilized their benefits, with popular policies offering around $1,750 in unused limits.
These new measures reflect the government’s commitment to improving financial support for Australians, while also addressing cost-of-living challenges.