• Wednesday, July 8, 2020

The Australians set to benefit most from July 1 changes

Discussion in 'World Affairs' started by Vanguard One, Jun 30, 2020.

  1. Vanguard One

    Vanguard One FULL MEMBER

    Dec 20, 2019
    +0 / 421 / -3
    Nurses, teachers and frontline healthcare workers are among the Australians set to benefit the most when a slew of policy changes begin on July 1.

    Canstar Editor-at-Large Effie Zahos told Today that an increase to the minimum wage will go a long way in lining the back pocket of essential workers during the coronavirus crisis.

    The change will be rolled out across all awards, Zahos explained.

    A Sydney nurse in St Vincent's Hospital emergency department's red zone inside an isolation room tends to a patient suspected of having coronavirus COVID-19 (Sydney Morning Herald / Kate Geraghty)

    "The Fair Work Commission announced a 1.75 per cent increase in the minimum wage to kick in from July 1," she said.

    "That's across all awards. Take note that is going to be rolled out in three trenches depending on what award you are on. From tomorrow it is the front-line workers, nurses, teachers, people in health care, they are looking at that.

    "If you are not on an award you still see an increase in the national minimum wage of about $13 a week."

    A couple sit at the window of Caffé E Torta in Melbourne. Small businesses will also benefit from the changes. (Getty)
    Other policy changes include the continuation of the instant assets tax write-off and lower tax rates.

    Zahos said both changes will help small businesses in the midst of the coronavirus slump as national unemployment hits 7.1 per cent.

    "What we are seeing from July 1 is the corporate tax rate will change from 27.5 per cent down to 26 per cent for businesses with a turnover of less than $50 million.

    "We will also see businesses with under a $5 million turnover the increase in small business tax discount from eight to 13 [per cent].

    "At the moment that cuts your tax by about $1000," Zahos explained.

    "Now more than ever small businesses are going to appreciate that."

    However with the good comes the not so-good; the government's free childcare policy is set to end in the next two weeks, Zahos said.

    "That is going to stop on July 13. That came in because in the height of COVID, so we are not going to see that from July 13."