Netflix and MP wages up

Raft of changes come into effect from Saturday

CUTS to penalty rate cuts, rises in the cost of digital products and superannuation amendments are just some of federal changes to come into effect from tomorrow.

The prices of digital products, including streaming services such as Netflix, will increase by about 10 per cent on July 1 as the application of the GST is extended.

Hundreds of thousands of Australia’s lowest-paid workers in the hospitality, retail and fast-food industries will wear cuts to Sunday penalty rates, under a Fair Work Commission decision criticised by Labor and the unions.

But 2.3 million Australians will also get a 3.3 per cent pay rise under the commission’s recent minimum wage determination.

The new national minimum weekly wage will be $694.90 (up $22), equivalent to $18.29 per hour. However, Prime Minister Malcolm Turnbull and other federal MPs will receive pay rises of at least $4000 a year while high income earners – those making more than $180,000 per year – will also get a bit more as a two per cent “deficit levy” is removed.

Changes to superannuation will affect contributions and the way super and retirement income is taxed.

If an Australian earns less than $40,000 a year or is selfemployed they will benefit from more flexible super contribution rules.

High income earners or those with large super balances will be subject to new contribution limits and a balance cap that will change how much can be added super pool.

As well, first-home buyers will be allowed to use up to $30,000 of voluntary superannuation contributions for a deposit on a house or apartment. But landlords will no longer be able to deduct travel expenses to inspect residential rental properties.

Seasonal to an individual’s workers should benefit from the start of twoyear trial by the federal employment department allowing up to 3800 people a year to earn an extra $5000 without impacting income support payments.

They will also get an annual allowance of up to $300 when the work is carried out more than 120km from home.

July 1 also signals a new streamlined pathway to permanent residency for New Zealand citizens.