July cash boost – how much will you get?

The onset of July means the middle of winter in Australia. Apart from those who embrace the ski season, few Aussies are thrilled by the prospect. But this year there’ll be a financial lining to the gathering winter clouds – a July cash boost.

This year the July cash boost will come with an extra kick, thanks to the tax cuts announced by the Albanese government coming into effect. The average Australian will enjoy a tax cut of $2000, giving them an extra $40 per week in their pockets. Given the cost-of-living pressures of the past few years, this will come as welcome relief to most.

Meanwhile, thousands of Australian carers will also receive a July cash boost the form of an annual supplement. On top of that, pensioners will be among a range of other Centrelink customers who will receive relief through indexation.

The big July cash boost – tax cuts

July’s tax reductions have been long in coming, and long debated. They represent the so-called ‘stage three tax cuts’ originally formulated by the Liberal government under prime minister Malcolm Turnbull. They were part of the former government’s Personal Income Tax Plan announced in the 2018–19 Budget.

From the beginning, the stage three cuts drew criticism. The main one was that the cuts would benefit only Australians in the highest tax bracket. Anthony Albanese went into the 2022 Federal Election saying he had no plans to scrap the cuts. However, under intense public pressure, he announced modifications ahead of this year’s Federal Budget.

As part of his “tax cuts for all” promise, Mr Albanese’s changes mean that Australians earning less than $150,000 will get a larger return than promised in 2018. Those earning more than $150,000 will get a tax cut, too, but it will be less than was originally outlined.

Under the changes, households and couples with children will have between $56 and $75 more in their pockets each week. For households without children, the July cash boost will provide an extra $33 per week. 

Carers

The $600 Carer Supplement is an annual payment for those with caring responsibilities who get certain carer payments. Importantly, the supplement does not count towards your taxable income.

Full details of the supplement, payable on 1 July each year, are available through the Services Australia website.

Pensioners and others in line for a July cash boost

A July cash boost will also come to several other groups, courtesy of government indexation. Among those who are in line for financial relief are those on the Age Pension or the Disability Support Pension. Families on the Family Tax Benefit, Newborn Supplement and Multiple Birth Allowance will also receive a boost.

Pensioners will benefit from increases in income and asset thresholds, allowing more individuals to qualify for, or receive, higher payments. For those on fixed incomes, this will provide at least a partial buffer against rising costs driven by inflation.

A full list of payments that will increase as a result of the 1 July indexation can be found here.

How much will the July cash boost deliver to you? Will it be enough to make a meaningful difference? Let us know via the comments section below.

Also read: Pension rules require urgent overhaul: NSA

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