Welfare payments, workplace reforms, among changes to kick in from January 2025

New Year’s Day is set to bring a suite of changes - including a cash boost for some Australians.

Change might be a New Years cliché, but a slew of new taxes, benefits, laws and regulations that will kick off from January 1, 2025 might make you think otherwise.

From social services to employment reforms and harm minimisation efforts, a suite of changes will come into effect in the New Year. Here’s a taste of what’s to come.

Increased income support payments

Welfare payments are indexed regularly and are linked to price changes like the Consumer Price Index, a key measure of household inflation.

In 2025, Youth Allowance recipients will receive an increase of anywhere from $15 to $30.60 per fortnight, depending on their family situation. The parental income test threshold for Youth Allowance will also increase by $2555 per annum to $65,189.

Out of the 26,125 people on Austudy payments around Australia, the largest increase is $30.60 per fortnight which goes to single parents with children. Single people and those partnered, but without children will get a $24.30 increase.

Welfare payments are set to increase to help ease cost of living pressures. Picture: NCA NewsWire /Mark Brake

Changes to the ABSTUDY Living Allowance payment - for Aboriginal and Torres Strait Islander Australians while studying or training - see those studying a Masters or Doctorate get the biggest increase, with a $54 boost that cashes in at $1285.40 per fortnight.

The remaining fortnightly increases range from $1.50 for a child under 16 (tertiary) to $30.60 for independent, single people under 16 and aged 16 – 21 with a dependent child.

The biggest increase for Australians under 21 on the Disability Support Pension will be for independent singles under 18, independent singles from 18-20 and a member of a couple at $30.10 per fortnight.

Jobseeker income limits will remain fixed for all family situation brackets.

Wage theft criminalisation

Part of the Labor government’s “Closing Loopholes” industrial reforms package, the federal criminalisation of wage theft is the final leg in a series of workplace relations legislation that includes the right to disconnect.

The new offence only applies to underpayments that happen after the provisions take effect.

Penalties include up to 10 years in prison and a $1.565 million fine for individuals, as well as a $7.825m penalty for companies.

Small businesses with under 15 employees won’t be referred for criminal prosecution if the comply with a Voluntary Small Business Wage Compliance Code (Voluntary Code).

This code is yet to be released.

The visibility of ATMs will be affected in pubs and hotels to further gambling harm minimisation efforts. Picture: Chris Pavlich.

ATM visibility changes at hotels and registered clubs

New gambling harm minimisation efforts will see ATMs or EFTPOS cash withdrawal facilities in NSW to be located outside of a 5-metre radius of any entrance to, or exit, of a gaming area in a hotel or club.

These machines will not be allowed to be visible from a gaming room, its entry, or any area where gaming machines are located.

Signs for gaming machines will not be allowed to be visible from an ATM or EFTPOS withdrawal machine.

Updates to foreign resident capital gains withholding (FRCGW) rules

FRCGW intends to help the Australian Taxation Office collect tax liabilities owed by nonresidents selling Australian properties.

Under the current rules, Australian residents selling property must provide a clearance certificate to the purchases before or at settlement where the value of the property is greater than $750,000 to avoid 12.5 per cent of the property sale being withheld and paid to the taxation office.

From January 1, 2025, the withheld amount increases to 15 per cent, while the minimum $750,000 is scrapped. This means the rules now apply to all property sales.

Originally published as Welfare payments, workplace reforms, among changes to kick in from January 2025