A New Financial Year Begins The start of a new financial year is the perfect time to pause, reset and take a fresh look at your finances. With market growth last year, tax changes now in effect and cost of living pressures still a concern, this is a good moment to check in on your plan and see if it still suits your goals.

Australian Markets Finish Strong

Despite global challenges, the Australian share market ended the last financial year with strong results. The ASX 200 gained nearly 10 percent, its best return since the COVID recovery. In the US, markets also performed well in June as hopes grew for interest rate cuts and calmer trade conditions. Oil prices spiked and then dropped sharply as tensions in the Middle East eased, and the Australian dollar climbed to a seven-month high.

Tax Changes Are Now in Effect

The Stage 3 tax cuts began on 1 July. These changes will benefit most Australians earning under $150,000, with more take-home pay showing up in payslips from this month. It’s worth thinking about how to make the most of the extra money, whether that’s paying off debt, boosting savings, or putting it towards long-term goals.

Cost of Living Pressures Continue

Even with signs of market recovery, many Australians are still feeling the pinch. Grocery prices, rent and insurance premiums remain high, and interest rates are still uncertain. A quick review of your spending and savings can help you stay in control. Looking for better deals on bills and cutting out unused subscriptions can go a long way.

Energy and Phone Bills Are Rising

From July, some households will see higher energy costs, with electricity bills going up across several regions. Telstra and Optus have also raised prices on a number of phone and internet plans. On the positive side, eligible households and small businesses can receive up to $150 in rebates from the Energy Bill Relief Fund to help with power costs.

MoneySmart’s Tips for the New Financial Year

MoneySmart suggests starting the new financial year with simple habits like reviewing your budget, setting up automatic savings, and learning more about how your investments work. Even small steps can make a big difference if they’re done consistently.

Let’s Make This Year Count

This is a great time to check that your financial plan still fits your life.