Higher power bills; superannuation and wage increases set to hit Australians in coming days

Increases in power bills and superannuation guarantees are set to affect millions of Australians in coming days, as Labor lauds upcoming rises in the minimum wage on July 1.

Social Services Minister Tanya Plibersek says the July 1 changes will make a huge difference to the lives of Australians. Picture: Martin Ollman

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Increases in power bills and superannuation guarantees are set to affect millions of Australians in coming days, as Labor lauds rises in the minimum wage from July 1.

The start of the new financial year will usher in a series of changes, including a 3.5 per cent increase to the minimum wage, a new 12 per cent superannuation guarantee and the introduction of superannuation payments on paid parental leave, which is also set to increase from 22 to 24 weeks.

Social Services Minister Tanya Plibersek spruiked the changes on ABC’s Insiders on Sunday, saying they would “make a huge difference to the lives of Australians”.

Among other key reforms is a 4.6 per cent increase to skilled visa income thresholds, as well as a 2.4 per cent indexation on social security payments, which the government says will benefit 2.4 million recipients across the country.

This will include increases for those receiving family tax benefit payments, and higher income and asset thresholds for those receiving the age pension.

Other Australians set to benefit from changes in the new financial year include future teachers, nurses, midwives and social workers, who will receive about $331 per week while undertaking mandatory placement as part of their courses, and housing construction apprentices, who will receive a $10,000 incentive payment.

The government will also provide households and about one million small businesses with another $150 in energy bill rebates, as well as a 30 per cent discount on the installation of a battery for those looking to move to solar.

Higher energy bills warning

However, acting opposition leader Ted O’Brien warned that Australians would face higher energy bills resulting from the Australian Energy Regulator’s increases to maximum prices retailers can charge customers.

Ted O'Brien says the new financial year will bring “another wave of cost increases”. Picture: Martin Ollman

“The energy regulator’s Default Market Offer for 2025 kicks in across NSW, South Australia, Queensland,” Mr O’Brien said.

“Compared to 2024-25, from 1 July prices for households will be up to 9.7 per cent higher, and up to 8.5 per cent higher for small businesses.”

Mr O’Brien said the new financial year would constitute “another wave of cost increases and economic pressure”, and also pointed to Labor’s contentious proposal to increase tax on superannuation balances above $3m, the removal of tax deductibility on interest charged by the ATO on overdue tax debts, and the commencement of a new Australian Competition and Consumer Commission mandatory mergers notification regime, which he said could cost businesses more than $1m.

Leading independent economist Saul Eslake said the 3.5 per cent minimum wage rise amounted to an increase in real wages that would affect about 20 per cent of the workforce and should provide a boost to the economy.

“While there’s a cost of that to employers, there is a boost to people’s incomes and that’s people who are most likely to spend all of it,” Mr Eslake said.

He said there should be no further increases to the superannuation guarantee rate once it hit 12 per cent on July 1.

“I agree with (former federal treasurer and Cbus chairman) Wayne Swan that 12 per cent is enough,” Mr Eslake said.

“I think 12 per cent is enough, and in some cases more than enough, to give people a decent income in retirement, provided they’re contributing over their working life.”

Mr Eslake said while 12 per cent may not be sufficient for those who took extended periods out of the workforce, such as women caring for children or older relatives, this should be addressed through targeted measures rather than by increasing the superannuation contribution rate for all.