The massive cash injection millions of Australians are getting TODAY: What you need to know

Australians are set to benefit from their long-awaited tax cuts soon, with minimum wage earners getting a pay rise and everyone getting a discount on their electricity bills.

July 1 not only marks the start of the new financial year, but also the debut of Labour’s revised stage three tax cuts and a range of measures to help tackle the cost of living.

Treasurer Jim Chalmers insists these goodies will not worsen Australia’s inflation crisis or trigger another rate hike, amid fears the Reserve Bank could inflict more pain in August.

“The tax cuts that will flow to every taxpayer from Monday are within the same budget that was already taken into account, according to the Reserve Bank and Treasury forecasts,” Dr Chalmers said on Friday.

‘We have also ensured that energy bill reductions, cheaper medicines and Commonwealth housing benefit are aimed at bringing prices down, not up.’

Here’s what you need to know about the cash splash.

Tax cuts in phase three

Australia’s 13.6 million taxpayers will get relief on July 1, but Labor’s revisions to the former Coalition government’s third stage of tax cuts will deliver more sweeteners for lower and middle incomes.

Part-time workers making $45,000 a year — or less than the new full-time minimum wage of $47,627 — will get $805 a year back instead of nothing.

Those earning $80,000 — slightly more than the median wage of $74,500 — will get $1,679 back instead of $875.

Australians will receive their tax cuts as minimum wage workers get a pay rise and everyone gets a reduction in their electricity bills

Labor has maintained the 37 percent tax bracket for those earning between $135,000 and $190,000.

Meanwhile, the 45 percent tax bracket will kick in at $190,000 instead of $200,000.

This means that high-income earners earning €2,000,000 will receive €4,529 back instead of the original €9,075.

Increasing the minimum wage

Australia’s 2.7 million lowest-paid workers will get a 3.75 percent increase on Monday, boosting their hourly wage by $24.10 and increasing their weekly pay. $915.90.

Such minimum wage increases are often repeated in national prices, but the wage increase will be lower than May’s 4 percent inflation rate. This means that real wages will fall.

Westpac senior economist Justin Smirk said the increase was unlikely to lead to a rate hike as the Fair Work Commission had only awarded a small increase.

“The RBA would be comforted by the decision,” he said.

‘The FWC noted that not only were they taking into account the rising cost of living for workers affected by the decision, but they also took into account the revised tax relief in phase three and the broader cost of living relief that workers will receive from July 1. ‘

Australia’s 2.7 million lowest paid workers will get a 3.75 percent pay rise on Monday, boosting their hourly wage by $24.10 and taking their weekly pay to $915.90 (pictured is a barista in Parramatta, Sydney)

Discount on electricity

From July 1, everyone, regardless of their income, will receive an electricity rebate of $300, in four quarterly installments of $75.

This cut will last only one year, and there are serious concerns that inflation will rise again once it expires in June 2025 – or even fail to bring inflation down as promised.

Unlike the previous $500 rebate for seniors and health card holders, this $300 rebate – which will cost the budget $3.5 billion – does not come with a means test.

Prime Minister Anthony Albanese promised at the last election to cut the average annual electricity bill by $275 by 2025.

But in the year to May, electricity bills rose 6.5 percent – ​​a level above inflation.

The Reserve Bank left interest rates unchanged this month at 4.35 percent, the highest level in 12 years. However, in the accompanying statement, the bank supported the electricity discount as a form of government spending that will not contribute to inflation.

“Recent budget results could also have an impact on demand, although federal and state energy cutbacks will temporarily reduce headline inflation,” the report said.

“Continuing service price inflation is a major uncertainty.”

Commonwealth Housing Allowance

While Dr. Chalmers spoke about the 10 percent increase in Commonwealth rental assistance, this measure will not come into effect until September 20.

Vaping

Nicotine-free vapes are no longer available outside pharmacies; users now require a doctor’s prescription.