All the changes coming into effect from January 1, 2024 in Australia
January 1 will see some major changers across Australia - It’s good news for some, but bad news for others.
2024 is finally upon us.
Just like July 1, the first day of the New Year always brings with it a raft of changes as new laws and regulations, fees and charges, and taxes and benefits come into effect.
Here are all the biggest changes you need to know about from January 1, 2024.
Disposable vape crackdown
Importation of all disposable vapes containing nicotine will be banned from January 1 under the “toughest laws” in the world.
The government announced in May that it would outlaw the importation of non-prescription vaping products in the biggest smoking reforms in a decade.
Under the new laws, the only vapes legally allowed into Australia will be pharmaceutical products prescribed by a doctor and dispensed through a pharmacy to help people quit.
New measures will also see packaging and flavours used for pharmaceutical vapes severely limited, and potentially extend laws banning workplace smoking to vaping.
More than 3.5 million Australians aged 14 and older smoke or vape according to June research released by Cancer Victoria.
“This is the number one behavioural issue in school communities around the country, indeed around the world … it’s just driving people crazy,” Health Minister Mark Butler told the ABC in November. “It’s driving parents crazy.”
Welfare payments increase
More than 936,000 Australians receiving youth, student or carer support will see a 6 per cent boost to their payments from January as indexation takes effect.
Young job seekers and students will see their Youth Allowance payments increase between $22.40 and $45.60 a fortnight, and those receiving Austudy will get an increase of between $36.20 and $45.60 a fortnight.
Recipients of Disability Support Pension aged under 21 years will receive payment increases of $31.10 to $44.90 a fortnight, and over 600,000 carers will receive additional financial support as Carer Allowance will increase to $153.50 a fortnight.
“Australia’s social security system is a safety net that is continually strengthened and improved to support all vulnerable Australians,” Social Services Minister Amanda Rishworth said in a statement.
“Through regular indexation, our payments are adjusted in line with changes in the cost of living to retain their purchasing power.”
New home gas ban
New homes built in Victoria from January 1 will be banned from connecting to natural gas.
The controversial ban was announced in July by former Victorian Premier Daniel Andrews, who billed it as a cost of living measure claiming households will save up to $1,000 off their annual energy bills while reducing household emissions.
From January 1, planning permits for new homes and residential subdivisions will only connect to all-electric networks.
To encourage new homeowners to go all-electric, eligible new home builders, as well as existing homeowners and renters, can access $1,400 solar panel rebates and interest free loans of $8,800 for household batteries.
All Victorian households and businesses are also eligible for gas to electric rebates to upgrade heating and cooling and hot water heaters.
Victorian Energy Minister Lily D’Ambrosio said getting Victorians on more efficient electric appliances would lead to big savings on bills.
“We know that with every bill that arrives, gas is only going to get more expensive,” she said.
“That’s why we’re stepping in to help even more Victorians get the best deal on their energy bills. Reducing our reliance on gas is critical to meeting our ambitious emission reduction target of net zero by 2045 and getting more Victorians on more efficient electric appliances which will save them money on their bills.”
Section 93Z and Gaza protests
The government intends to use a lesser-known provision of the Crimes Act 1900 to address the rise of antisemitism and Islamophobia stemming from the ongoing conflict in Gaza.
Section 93Z of the act establishes an offence wherein a person, through a public act, deliberately or recklessly threatens or incites violence against another individual or group based on factors such as race, religious beliefs, affiliation, sexual orientation, gender identity, intersex status, or the fact that the person is living with HIV-AIDS.
Notably, recent governmental reforms have eliminated the prerequisite for cases under Section 93Z to be initially referred to the director of public prosecutions (DPP) before advancing further.
New ‘global minimum tax’
Australian-based subsidiaries of major multinational corporations will be subject to a minimum tax rate of 15 per cent, marking a significant development in the OECD’s ongoing effort to modernise the global business taxation framework.
Effective for income years commencing on or after January 1, this domestic minimum tax is a key component of a comprehensive set of measures the federal government implements to address tax concerns related to multinational companies.
$60 toll cap in NSW
NSW motorists using toll roads will be limited to racking up a weekly toll bill of $400, if they want to benefit from the $60 cap — a key election promise of the Labor government before it won the state election in March.
During the election, Labor in opposition said they would bring in a $60 weekly maximum spend on tolls, with drivers able to claim back the amount spent over it.
The two-year trial will begin from January 1, with the first round of rebates set to be issued through Service NSW from April 2024.
To be eligible, drivers must be a NSW resident and use their cars for a private reasons, which excludes rideshare operators, heavy vehicles, taxis and cars which are registered to a business. The cap is also only eligible for trips taken on NSW toll roads and cannot be claimed back through interstate toll accounts.
In December, the government announced a “fair use” provision would also be put in place, meaning drivers can claim up to $400 a week on tolls, or receive a maximum weekly rebate of $340.
Motorists in western and northwest Sydney are expected to benefit most from the policy, which is forecast to apply to about 720,000 drivers. This includes estimates of about 13,240 account holders in Kellyville, 10,952 in Baulkham Hills, and 10,366 in Greystanes.
Second home tax hike
Victorians who own more than one home will be slugged with 10 years of increased taxes from January 1 under a “temporary” measure designed to help the state pay down its Covid debt.
Under Victoria’s budget changes announced in May, those who own more than one home will pay at least $5,000 over the next 10 years, with a new $500 annual tax for investment properties with a land value between $50,000 and $100,000.
The payment will increase to $975 for homes valued between $100,000 and $300,000, while an extra 0.1 per cent of the land value will be applied to properties worth more than $300,000.
Treasurer Tim Pallas said roughly 860,000 landowners would be affected by the land tax change, of which 380,000 will be first-time taxpayers.
“The Covid debt levy is targeted at those with the greatest ability to pay following the pandemic,” he told parliament.
“We think it is fair that Victorians with multiple properties make a modest contribution to repaying Covid debt.”
Free kindy in Queensland
Parents in Queensland will be able to access free kindy starting from January 1.
Kindergarten, for children aged at least four-and-a-half, is 15 hours per week, 40 weeks per year, offered in long day care services and sessional kindergarten services.
Announced under former Premier Annastacia Palaszczuk in June’s state budget, the free kindy initiative will provide cost-of-living relief of up to $4,600 per year for an estimated 50,000 additional families.
Around 14,000 Queensland families were already eligible for free kindergarten. The free kindy expansion will cost the state $645 million and bring the investment in kindergarten to $2 billion over four years.
“This investment will put thousands of dollars back into the pockets of families at a time when we know people are doing it tough and support parents getting back into the workforce,” Ms Palaszczuk said earlier this year.
“There are currently around 8,000 children who are eligible to attend a kindy but don’t, and it’s time to close that gap.”
The Queensland government has teamed up with The Wiggles to spread the message during the children’s group’s end-of-year Wiggly Big Day Out Tour which ran from November to December.
“We’re proud to partner with the Queensland Government to promote the important message that kindy is free for all families from 2024,” Blue Wiggle Anthony Field said in a statement.
Plastic bags banned, again
Heavyweight plastic bags will be banned in the ACT from January 1, under the next phase of the territory’s crackdown on single-use plastics.
The territory was the second jurisdiction after South Australia to ban lightweight plastic bags in 2011, with the thicker reusable bags becoming popular — but they weren’t actually reused as much as had been hoped.
“We did see some members of the community use some of the heavyweight plastic bags that were meant to be reusable as single-use items,” City Services Minister Chris Steel told Riotact in July.
“So what this ban will mean is that we will have better alternatives that are more sustainable, that can still be reused but also recycled.”
A large number of single-use plastic items were banned under the Plastic Reduction Act 2021, including cutlery, stirrers, takeaway food and drink containers, straws and cotton buds.
Additional items have been banned in two stages — from July 1, 2023, single-use plastic plates and bowls, polystyrene loose-fill packaging and trays, and plastic microbeads in washing and cleaning products.
From January 1, heavyweight and boutique plastic bags, greater than 35 microns in thickness, will also be banned.
“We know some of these single-use items often find their way into the environment or straight into landfill, where they persist for hundreds of years,” Mr Steel said.
“So part of the reason we’re doing this phase-out is to make sure we’re moving to more sustainable alternatives that can break down or be recycled more easily.”
Easier for seniors to work
Seniors and veterans who still want to work will be able to earn more income before their pension payments are affected from January 1.
The federal government is permanently increasing the Work Bonus limit by $4,000 — from $7,800 to $11,800 — cementing what had been a temporary measure until the end of 2023.
Single pensioners can earn $204 a fortnight and couples can earn $360 before it is counted under the pension income test — this is known as the pension income free area.
On top of that is added the $300 per fortnight Work Bonus, which increases the amount they can earn. In other words, a single age pensioner could earn up to $504 a fortnight from work and still receive the maximum rate of pension.
The Work Bonus Income Bank allows pensioners to accrue any unused part of the $300 Work Bonus to offset against future income, which is useful for those who undertake intermittent or occasional work.
From December 1, 2022, to December 31, 2023, the government introduced a one-off temporary credit of $4,000 to Work Bonus Income Bank balances and raised the maximum balance to $11,800.
In September, after campaigning from National Seniors Australia, the government announced it was making the change permanent from January 1.
“Many older Australians are choosing to supplement their Age Pension with paid work — and good on them,” Social Services Minister Amanda Rishworth said.
“We need to make sure that the system is incentivising older Australians to work if they want to. No one should be financially disadvantaged by staying in the workforce longer, or returning to the workforce after some time away.”
$200 help to beat ‘bin tax’
Brisbane households will be able to access a new $200 rebate when they install insinkerators and waste dehydrators from January 1, under a plan by council to help residents avoid the state government’s controversial “bin tax”.
The Towards Zero Waste strategy, announced by Lord Mayor Adrian Schrinner in November, contains a suite of measures aimed at helping households reduce the amount of waste they send to landfill.
Brisbane Council warns that the state government’s decision to increase the “bin tax” waste levy while also cutting rebates to councils will cost the city an estimated $338 million, or about $600 per household, over the next 10 years.
“Every Brisbane household will pay the state’s bin tax if we don’t take action,” Cr Schrinner said.
“The state government promised residents its waste levy wouldn’t effectively be bin tax but unfortunately that’s not going to be the case. Our strategy will help residents recycle, reduce the volume of waste that ends up in landfill and, importantly, minimise the impact of the state’s bin tax.”
Council will also increase the rebate for compost bins and worm farms from $70 to $100 from January 1.
Other elements of the strategy, which includes digitised waste vouchers, more community-based collection points and the staged rollout of a citywide household food waste recycling service, will be rolled out over coming years.
Cr Schrinner vowed that council would roll out a citywide food waste recycling service without cutting weekly red-top collections.
“Our commitment is simple,” he said.
“We will keep weekly red-top collections. We will not cut them to fortnightly. We’ve seen what’s happened when much smaller councils have rushed food waste recycling, cut red-top collections and caused a big stink with their residents.”
Cr Schrinner noted that “just recently there were reports of Sydney families being forced to freeze dirty nappies to avoid them festering for a fortnight in red-top bins”.
“Any attempt to simply switch on food waste recycling overnight in a council area the size of Brisbane — which has over 500,000 households — would be diabolical,” he said.
“It would create a massive stinking pile of contaminated waste that cannot be safely made into compost. It would leave our suburbs filled with foul-smelling red-top bins for a fortnight, particularly during the warmer months.”
Cats locked up, dogs leashed
Pet owners in Bendigo, central Victoria, will have to keep their dogs permanently leashed outside designated areas from January 1 under tough new rules passed by council.
Greater Bendigo City Council voted in May to permanently lock up cats and default to an on-leash municipality in 2024, while creating 21 new designated off-leash areas.
The 24-hour cat containment requirement will kick in later in the year, from July 1.
“Currently in Greater Bendigo, there is an order in place that requires cats to be secured to the owner’s property from sunset to sunrise,” Greater Bendigo Mayor Cr Andrea Metcalf said.
“The new order, when it comes into effect next year will require cats to be securely confined to the owner’s property at all times.”
Cr Metcalf said the decision came after an eight-week community consultation process which received a total of 194 submissions, with 75 per cent of cat containment submissions in support and 25 per cent opposed.
“Similarly, 83 per cent of dogs on leash submitters were supportive of the dogs on lead proposal with 17 per cent opposed,” Cr Metcalf said.
The new rules contain a number of provisions, including for “working dogs to be off leash when actively engaged in farming and stock moving activities, changes to the lead length requirements for practical, training and enforcement reasons” and “restrictions placed on several designated off-leash areas to ensure the designation does not impact on competing uses”.