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West Australian
29-06-2025
- Business
- West Australian
From wages and parental leave to battery rebates, here's what's changing for new financial year
Minimum wage, superannuation and parental leave are all set for a shake-up next week as the new financial year is ushered in next week. From how you get paid to how much you'll be charged for electricity, there are plenty of changes in store and PerthNow spoke to two financial experts to break down what it will mean for you. From July 1, those on the national minimum wage will have their pay boosted by 3.5 per cent. The wage will be lifted to $24.95 per hour or $948 per week. About 2.9 million people will benefit from the boost. In Western Australia employees over the age of 21 will see a 3.75 per cent increase to the minimum wage, equivalent to $953.00 per week. Canstar data insights director Sally Tindall said the increase would be welcome but was unlikely to help everyone in need. 'This is a really important increase for those workers on the minimum wage and award wages,' she said. 'The cost-of-living crunch has really hit those on the lowest incomes the hardest, and this increase will help those people keep up with additional expenses. 'It's not a silver bullet ... this increase is incredibly welcomed but for some people it won't go far enough in helping them make the dollars and cents add up month after month.' Along with a pay increase for those making the least, all workers will now have more paid into their super accounts. From July 1, the mandatory minimum payment rate will be upped from 11.5 per cent to 12 per cent. The increase caps off the gradual rise in the super guarantee which has resulted in incremental rises from 9 per cent in 2013. Ms Tindall said the changes would be especially good news for younger people. 'More money will be going into people's super accounts, which means it will take the pressure off Australians when they hit retirement, knowing that they have a decent amount of money in super,' she said. 'It will impact younger Australians the most because they will be on that 12 per cent guarantee for a long period of time and see that nest egg grow. 'Not just from their employers contributions over time but also hopefully from the returns that are generated within the super fund over that time as well.' Expectant parents will be eligible for up to 24 weeks or 120 work days paid leave., if their child is born or adopted from July 1. It is an increase from the previous 110 days, and is part of a four-year move to boost the number of days to 130 by mid-2026. Secondary carers will now have 15 days of paid parental leave reserved for them as part of the total 120, up from 10. Both parents will also be able to take up to 20 days at the same time, up from 10. Those taking parental leave will also now be paid superannuation during their time off for the first time, equal to the superannuation guarantee rate. personal finance expert Sarah Megginson said families were benefitting from multiple changes. 'With the new hourly rate of minimum wage up ... that of course, impacts things like paid parental leave,' she said. 'If you're eligible for paid parental leave, it means that you'll be getting $948 per week for almost six months and you can share that between both parents.' It's not all good news come July 1. From next week West Australian households can expect to be slugged an extra 2.5 per cent for their utility bills. The change was confirmed in the 2025-26 State Budget which indicated that average household would pay nearly by nearly $100 more a year for their water and power. Motor vehicle charges, such as a registration fees and the cost of a driver's license, will increase by a total of 3.3 per cent. The Emergency Services Levy — an annual charge paid by all property owners — will also increase by 5 per cent. Ms Megginson said those doing it tough would not be looking forward to increased bills once again. 'Our bills have just been going up and up and up for many, many years and no one really has the appetite to hear they're going up again,' she said. 'But on July 1 we will see an increase to energy prices and it's not insubstantial. it's a pretty decent price hike and it depends where you live.' West Aussies are set to benefit from two battery rebates at once with the combining of State and Federal initiatives. Synergy customers will be able to claim up to $5000 for a rebate on their battery purchase while Horizon Power customers can claim up to $7500. For households with a combined salary of less than $210,000 they can also access no-interest loans of up to $10,000 with a repayment period of up to 10 years. Ms Tindall said while not everyone could afford to make the investment, the rebates were still likely to boost uptake. 'These battery incentives will help increase the take up of solar batteries and with the State Government combining with the Federal Government I do expect that that will see as a decent boost in WA,' she said. 'It is limited to people who can afford the cost of the battery, even with the rebate, and that to many families will be a difficult expense to have to stump up even with the rebates.'
Perth Now
29-06-2025
- Business
- Perth Now
Five huge changes to WA household budgets coming this week
Minimum wage, superannuation and parental leave are all set for a shake-up next week as the new financial year is ushered in next week. From how you get paid to how much you'll be charged for electricity, there are plenty of changes in store and PerthNow spoke to two financial experts to break down what it will mean for you. From July 1, those on the national minimum wage will have their pay boosted by 3.5 per cent. The wage will be lifted to $24.95 per hour or $948 per week. About 2.9 million people will benefit from the boost. In Western Australia employees over the age of 21 will see a 3.75 per cent increase to the minimum wage, equivalent to $953.00 per week. Canstar data insights director Sally Tindall said the increase would be welcome but was unlikely to help everyone in need. 'This is a really important increase for those workers on the minimum wage and award wages,' she said. 'The cost-of-living crunch has really hit those on the lowest incomes the hardest, and this increase will help those people keep up with additional expenses. 'It's not a silver bullet ... this increase is incredibly welcomed but for some people it won't go far enough in helping them make the dollars and cents add up month after month.' Canstar data insights director Sally Tindall said a number of changes on July 1 would help household's bottom line. Credit: Supplied Along with a pay increase for those making the least, all workers will now have more paid into their super accounts. From July 1, the mandatory minimum payment rate will be upped from 11.5 per cent to 12 per cent. The increase caps off the gradual rise in the super guarantee which has resulted in incremental rises from 9 per cent in 2013. Ms Tindall said the changes would be especially good news for younger people. 'More money will be going into people's super accounts, which means it will take the pressure off Australians when they hit retirement, knowing that they have a decent amount of money in super,' she said. 'It will impact younger Australians the most because they will be on that 12 per cent guarantee for a long period of time and see that nest egg grow. 'Not just from their employers contributions over time but also hopefully from the returns that are generated within the super fund over that time as well.' Expectant parents will be eligible for up to 24 weeks or 120 work days paid leave., if their child is born or adopted from July 1. It is an increase from the previous 110 days, and is part of a four-year move to boost the number of days to 130 by mid-2026. Secondary carers will now have 15 days of paid parental leave reserved for them as part of the total 120, up from 10. Both parents will also be able to take up to 20 days at the same time, up from 10. Those taking parental leave will also now be paid superannuation during their time off for the first time, equal to the superannuation guarantee rate. personal finance expert Sarah Megginson said families were benefitting from multiple changes. 'With the new hourly rate of minimum wage up ... that of course, impacts things like paid parental leave,' she said. 'If you're eligible for paid parental leave, it means that you'll be getting $948 per week for almost six months and you can share that between both parents.' personal finance expert Sarah Megginson. Credit: Supplied It's not all good news come July 1. From next week West Australian households can expect to be slugged an extra 2.5 per cent for their utility bills. The change was confirmed in the 2025-26 State Budget which indicated that average household would pay nearly by nearly $100 more a year for their water and power. Motor vehicle charges, such as a registration fees and the cost of a driver's license, will increase by a total of 3.3 per cent. The Emergency Services Levy — an annual charge paid by all property owners — will also increase by 5 per cent. Ms Megginson said those doing it tough would not be looking forward to increased bills once again. 'Our bills have just been going up and up and up for many, many years and no one really has the appetite to hear they're going up again,' she said. 'But on July 1 we will see an increase to energy prices and it's not insubstantial. it's a pretty decent price hike and it depends where you live.' West Aussies are set to benefit from two battery rebates at once with the combining of State and Federal initiatives. Synergy customers will be able to claim up to $5000 for a rebate on their battery purchase while Horizon Power customers can claim up to $7500. For households with a combined salary of less than $210,000 they can also access no-interest loans of up to $10,000 with a repayment period of up to 10 years. Ms Tindall said while not everyone could afford to make the investment, the rebates were still likely to boost uptake. 'These battery incentives will help increase the take up of solar batteries and with the State Government combining with the Federal Government I do expect that that will see as a decent boost in WA,' she said. 'It is limited to people who can afford the cost of the battery, even with the rebate, and that to many families will be a difficult expense to have to stump up even with the rebates.'
Courier-Mail
13-05-2025
- Business
- Courier-Mail
Brutal truth about how Gen Z and Millennials are buying homes
Debt to secure debt: Younger home buyers often lean on debt to get the home deposit needed to secure a mortgage. Younger Australians are increasingly climbing the property ladder on the blood, sweat and tears of others because they can't do it themselves. Exclusive mortgage research has uncovered the sources of home buyers' deposits and the other upfront costs of home purchasing, exposing a brutal truth: a lot of the time it's not their money. Close to a quarter of Gen Z and Millennial home buyers polled in the survey said they funded their home deposits with borrowed money. And a similar proportion said they got help in the form of a cash gift from their parents, while government handouts were becoming another popular method for buying, especially among Gen Z. The Mortgage Choice survey also revealed home buyers below the age of 43 – making them either a millennial or part of Gen Z – were increasingly relying on sources outside of savings to crack the market. Units often offer a more affordable entry point into the market but Gen Z buyers often still struggle to come up with the deposits needed. It comes as separate analysis showed the deposit hurdle has become the biggest barrier to homeownership for many aspiring home buyers due to cost of living pressures and runaway home price growth. Simply put: many younger home seekers have been watching home prices grow at a faster rate than they can save and have struggled to come up with a deposit large enough to support their purchase plans. Mortgage Choice CEO Anthony Waldron said cash gifts from family were becoming a particularly common way for younger Australian to buy a home. 'As property prices have reached new record highs, getting into the market has become harder, so we asked survey respondents how they were doing it,' Mr Waldron explained. 'We found that more than a fifth of Gen Z respondents were funding their home loan deposit with a cash gift from family making the bank of mum and dad one of the largest lenders in the country.' Bidders will often bring their parents to auction to help them. Picture: Josie Hayden 'Our survey supports what we hear from Mortgage Choice brokers, particularly those in Sydney where median home prices have climbed to over $1.1 million. 'Our brokers tell us that many first home buyers can't afford to buy in Sydney without a cash gift, and those gifts range in value from $10,000 to as much as $500,000.' The Mortgage Choice research followed a recent poll, which showed a significant proportion of Aussies were not supporting their lifestyles with their own earnings but with debt. Finder noted that many Aussies were overextending themselves to keep up appearances and the higher cost of their holidays, cars and clothes were limiting their ability to save or plunging them into debt. Credit reporting agency Equifax had a similar finding, showing more than half of Aussies 18-24 were using Buy Now Pay Later services, which was dragging on their credit scores. MORE FIRST HOME BUYERS LOOKING Mortgage Choice home loan submission data revealed an uplift in first-home buyer activity over the March quarter, with the number of loans rising 5.6 per cent. The value of loans rose 12.3 per cent year-on-year. Home prices have risen nationally over the past year. Mortgage chalked the rise down the recent drop in home loan interest rates – and the prospect of more cuts – driving renewed optimism in the housing market. About a third of survey respondents said interest rates had made them more confident to buy – up from 23 per cent in the previous quarter and up 20 per cent year-on-year. By comparison, a year ago, 63 per cent of survey respondents said interest rates were adversely impacting their confidence.
News.com.au
05-05-2025
- Business
- News.com.au
Homeowners face ‘tough' debt decision after Albo election win
Newly re-elected Prime Minister Anthony Albanese has been urged to make cost of living support an urgent priority as alarming new polling shows debt problems have pushed many Aussies to the edge. The study showed mortgage repayments were swallowing more than half the monthly income of about one in five Aussie homeowners, who now face tough financial decisions to keep their homes. About three quarters of mortgage holders surveyed in the research were spending over a third of their household income on repayments – defined as 'mortgage stress'. This was despite the February cut to interest rates and a recent frenzy of refinancing activity as homeowners sought to cash in on cheaper loans. Mortgage stress levels were now at a 'crisis point', according to Finder, which pointed to additional research that showed about one in 10 homeowners had missed a repayment in the last six months. Finder home loans expert Richard Whitten said many households would need a lot more support than just another interest rate cut to stay afloat. 'The loan to income ratio has blown way out with millions teetering on the edge due to mortgage stress,' Mr Whitten said. 'Unexpected costs could spell serious financial trouble for many homeowners.' Mr Whitten said recent rate cuts and the prospect of another cut in May would offer much-needed reprieve for millions of Australians, but most households needed more cuts to make a real difference. 'Many families will still face tough financial choices to keep their homes,' he said. Nerida Conisbee, the chief economist at Ray White Economics, said the Albanese government's re-election could deliver mixed outcomes for the housing market. She pointed out that much of the housing policy announced in the lead up to the election was about supporting first-home buyers getting into the market. This included the government's flagship shared equity scheme, which will allow first-home buyers to snap up homes with deposits as low as 5 per cent. This policy, while aimed at improving accessibility for first-home buyers, was 'likely to drive prices higher in the near term before supply-side measures can take effect,' Ms Conisbee said. Much of the rise in prices would come at the most affordable end of the market, she added. '(That's) not great for affordability. But it will be a positive for people that already own property in those areas.' More interest rate cuts would help, Ms Conisbee said. 'Albo can't control those obviously. But they will be coming through now because of the global slowdown and inflation under control. 'A global slowdown, however, may come with rising unemployment so that is a risk factor … The real challenges come if people lose their jobs so it's really crucial they remain employed.' A possible financial lever the Albanese government could pull would be allowing a freeze on mortgage repayments, like those ushered in during the Morrison government's tenure during Covid. This step wouldn't be necessary unless unemployment went up markedly from current levels, Ms Conisbee explained. Finder money expert Rebecca Pike said some promised Labor policies may help if the government can deliver on them. 'The election of the Labor government means that Australians get the budget promises of tax cuts, energy rebates, student loan discounts and childcare subsidies, to name a few,' she said. 'This will be a huge help for so many struggling Aussies who have been battling rising costs. 'There may be some concern around what impact the budget measures might have on inflation, but for now people can breathe a little easier. And for the everyday Aussie, that's all they really need right now.' Housing Industry Association managing director Jocelyn Martin said the Albanese government should also prioritise home building. She also pushed back against any suggestion that the housing crisis lies outside the Federal Government's remit. 'We've heard it too often — that housing and planning is a state issue, or that the Commonwealth has limited levers to pull. That excuse simply doesn't stack up anymore. 'The Federal Government has the influence, the resources and the leadership role to bring all levels of government together. It can drive the co-ordinated policy, funding and reform needed to move the dial on supply and affordability — not just tinker at the edges. 'This was reinforced in yesterday's election results and with voters outlining housing as a key issue to be addressed as a matter of priority. We urge the new Government and the entire parliament to work together to implement the solutions already on the table. 'Housing Australians must not become a casualty of politics-as-usual. We can't afford more years of delay and stalling of key policies being implemented – we need action within weeks not years.'
News.com.au
28-04-2025
- Business
- News.com.au
Aussies' $3k loss could flip script on interest rate cut
Aussies are planning to hunker down this year and save rather than spend in a trend expected to drag on businesses and stymie economic growth and property prices. New polling has revealed 'rebuilding savings' has emerged as the top financial goal for Aussies this year, with respondents indicating they planned to save more even if interest rates were cut. It suggests widely anticipated cuts in interest rates later this year, which would have the aim of boosting a sluggish economy, may not produce as large an economic sugar hit as regulators would like. If this scenario plays out it could mean the decision by more Aussies to save, rather than spend, will lead to a higher chance of further RBA cuts down the track. A common reason Aussies wanted to save more money and reduce their spending was due to cost of living pressures and a financial hangover from years of higher interest rates, the polling showed. Nearly half of all Australians surveyed said they had dipped into their savings within the last year to manage living expenses The average Aussie withdrew $3,600 from a designated savings account over the past 12 months to cover everything from medical treatment to mortgage repayments. The research found 18 per cent of Australians had depleted their savings to pay for everyday essentials, while one in 10 raided their savings to pay for an emergency expense. With their savings now depleted, a third of Aussies said their top financial goal this year was to save more and rebuild their bank balances. Another common priority was boosting income, with about a quarter of Aussies saying this was their biggest financial goal for the rest of the year. Finder personal finance expert Sarah Megginson said Aussies have set their sights on recovery. 'People want to regain a sense of control over their money, whether that's by increasing their income, reducing debt, or boosting their super,' she said. Ms Megginson said the trends pointed to a climate of lower economic sentiment. 'When people prioritise saving over spending, it can directly reduce consumer demand for goods and services,' she said. 'This can lead to decreased sales for businesses, which can have the impact of prompting them to cut back on staff hours, headcount and production. 'Since consumer spending is a major driver of economic growth, a sizeable drop can slow down the economy.' Ms Megginson noted that increased savings was a good thing at an individual household level. 'For individuals, higher savings can provide a necessary financial buffer against unexpected expenses or economic downturns.' Rebecca Pike, money expert at Finder, said the cost of living has negatively impacted the wealth status of Australians. 'It's disappointing that households had to empty their savings to stay on top of expenses. 'From health crises to job losses, millions have had to turn to their savings to get themselves or someone they know out of trouble.' Ms Pike said the cost of living is to blame. 'Many are struggling to pay their bills and are left to dip into their savings jeopardising their financial goals.' Westpac last week announced it expected the Reserve Bank to cut the cash rate by 0.25 per cent at its May meeting. Interest rate cuts have historically driven up home prices but the boost from another cut may be less pronounced this time due to looming global uncertainty. Westpac's chief economist Luci Ellis told 'turmoil abroad' suggested a weaker economic environment ahead. 'Global growth – and especially US growth – will be slower; the response of China will be disinflationary for the world outside the US; and uncertainty is likely to delay decisions on some investment projects.'
