Surprising ways you can be better off after changes to government rebates from July 1
A raft of price hikes on government levies are set to hit NSW households from July 1, but some surprising changes could see some of us with extra cash in our hip pocket. HERE’S MONEY YOU CAN GET FROM JULY 1.
NSW
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It’s almost July 1, which means a series of price hikes to key government taxes and services. While most years the family budget would take a hit, this year the government is giving households some relief.
At the start of each financial year, most government fees increase as part of inflation. But this year, COVID-19 has cushioned the blow, with a series of rebates available to households and business.
Here’s the list of government taxes and charges that will change from July 1, as well as the cash you can claw back through rebates.
Car registration
In welcome news for residents hit hard by COVID-19, car registration costs will remain the same from July 1.
The charges — which are some of the highest in Australia — usually rise with inflation, but this financial year the government is giving households a helping hand by freezing the increase for the next three months. This freeze will also apply to driver’s licence applications
Tolls
The news isn’t as promising for the state’s road tolls, which will increase by about 1 per cent — or between 1 and 8 cents — on most motorways.
This includes the Cross City Tunnel, Eastern Distributor, Hills M2 and Lane Cove Tunnel. The Sydney Harbour Bridge and Tunnel will increase on January 1.
Toll relief is, however, available for drivers who spend $1300 or more on tolls. These commuters will be entitled to free or reduced registration costs.
Energy
The cost of living will continue to rise next month, with energy prices set to change from July 1.
The increases will vary depending on your provider, but most are hiking costs to around $0.28 or $0.30 cents per kWh for residents.
From July 1, the Family Energy Rebate will, however, be available to NSW households with dependent children who need help covering energy costs.
Those eligible include NSW residents who hold an energy account and are recipients of the Family Tax Benefit.
A $200 rebate is also available for Seniors Health Card holders and extra help is available for concession card holders.
The Energy Accounts Payment Assistance program will also continue to provide eligible applicants with relief of up to $1600.
New gas prices will be announced on June 30.
Property transfer duty
Property transfer duty brackets are indexed to movements in the CPI on July 1. This will result in a reduction to effective transfer duty rates.
Land tax
There are no planned changes to land tax for July 1.
Childcare subsidy
From July 13, the free childcare scheme will end and the Child Care Subsidy scheme will once again start.
From mid-July, families who are caring for a child 13 or younger who is not attending secondary school and who use an approved service can apply for a payment. Other eligibility criteria apply.
Those financially impacted by COVID-19 will also have more access to the subsidy, with more details to be released soon.
Cash for your kids
Parents can also apply for a range of payments to support their children if they play sport or engage in creative or other extra-curricular activities.
The Creative Kids voucher of $100 will be available for school-aged kids to use on arts, language, music, coding and other creative activities.
An $100 voucher is also available under the Active Kids program to help with the costs of your child’s sports program.
First home buyers
First home buyers in need of a helping hand can apply for the First Home Owners Grant from July 1.
The scheme allows first home buyers buying or building a new home to a $10,000 grant if the home is less than $600,000.
A deposit scheme is also available at the start of the month allowing first homeowners to apply for a mortgage with a 5 per cent deposit.
Local government rates
Ratepayers will also have to keep forking out for council rates, which will rise at most councils by a maximum of 2.6 per cent.
Some residents can claw back some of this money under a $250 rebate for pensioners.
Small business
From July 1, thousands of small businesses reopening after COVID-19 can apply for a $3000 Small Business Recovery Grant.
The grant is available for businesses affected by the pandemic who have an ABN, total wages below $900,000, fewer than 20 full-time staff and an annual turnover of more than $75,000.
Other eligibility criteria apply and businesses can apply through Service NSW.
Payroll tax relief
Hundreds of millions of dollars will remain in the hands of NSW businesses with tax cuts for businesses set to take effect from July 1.
Businesses with payrolls of $10 million or less will be eligible for a 25 per cent reduction in their liabilities for 2019-20. The threshold will also be increased to $1 million at the start of the month.
These business are also able to defer payroll tax payments for up to six months.
Lower insurance premiums
Businesses can breathe another sigh of relief as the government won’t be increasing insurance premiums for businesses hit by the outbreak.
From June 30, premium rates for the Nominal Insurer, which protects more than 325,000 businesses, will remain unchanged.
In addition, icare has also reduced premiums by $52 million for thousands of businesses who have adjusted their wages as a result of COVID-19.
Icare CEO John Nagle also committed to maintaining premiums at 1.4 per cent of average base wages.
Sports grants
Sporting clubs across the state can also apply for extra cash as part of a $27.3 million recovery package for the sector.
From July 1, grants of up to $1000 will be available to around 12,500 local sporting clubs and associations as part of the Community Sport Recovery Package.
Check here for details of the rebates available to NSW residents.