Power bills, family tax threshold, welfare payments to increase in the new financial year

Power prices, tax thresholds and welfare payments are due to change next week. Here’s what you can expect and why the social services sector says it won’t shift the dial for Territorians doing it tough.

Territorians will pay more for power from next week, at the same time thousands of families will see more dollars in the bank thanks to tax and welfare changes in the new financial year.

From July 1, Northern Territory electricity prices will rise by three per cent – above the current rate of inflation.

A new tariff will apply for large commercial customers using between 500 and 750 MWh a year, NT and Commonwealth government agencies will move to full cost pricing, and the solar feed-in tariff will double for energy exported to the grid between 3pm and 9pm.

The average household in Darwin would be paying almost 50 per cent more for power if not for the NT government funded Community Services Obligation (CSO), and even more in regional and remote areas.

NT power prices will increase by 3 per cent on July 1. Pic: Unsplash

The CSO was increased to $192m this year – a jump of $51m – to help shield Territorians from rising electricity supply costs.

“We want the lowest possible prices for households while maintaining a reliable network,” NT Treasurer Bill Yan said.

Meanwhile, the federal government will increase a raft of tax benefits and social security payments by 2.4 per cent in the new financial year.

Families receiving Family Tax Benefit Part A will see the maximum rate for children under 13 increased to $227.36 per fortnight, while the rate for children aged 13 and over will increase to $295.82.

For Family Tax Benefit Part B, the maximum rate will increase to $193.34 per fortnight.

The Paid Parental Leave annual income limit for individuals will rise to $180,007, and the family limit to $373,094 – building on reforms introduced two years ago.

Other changes from July 1 include higher income and asset thresholds across a range of payments, including Jobseeker, Youth Allowance, Austudy, Parenting Payment, Age Pension, Disability Support Pension, and Carer Payment.

NTCOSS chief executive Sally Sievers. Picture: Therese Ritchie

The Northern Territory Council of Social Service said that while every dollar counts for people on low incomes, “these small indexation increases simply aren’t enough to make a real difference”.

“A person on Jobseeker currently receives about $56 a day – that’s not enough to meet basic needs, let alone keep up with rising costs,” NTCOSS chief executive Sally Sievers said.

“These increases to family tax benefits — at most $7 a fortnight — won’t fundamentally shift the reality for Territorians doing it tough.

“Our latest Cost of Living report found that a sole parent on Jobseeker with two children would need to spend more than 80 per cent of their income just to afford a three-bedroom rental at current median prices in the NT.

“Changes to income thresholds may offer some help, but they don’t fix the core problem: the base rate of income support payments is not enough to live on.”

Federal Solomon MP Luke Gosling said the 2.4 per cent boost offered “practical cost of living relief for more than 21,000 Territorians who rely on social security to support their families, stay healthy, and meet daily expenses.”

“From single parents to pensioners, these changes reflect our commitment to building a stronger, more supportive social safety net — one that Territorians can rely on,” he said.