Here’s a summary of the big hip pocket changes that start tomorrow.

July 1 is the start of a new financial year that should breed optimism. For a lot of wage earners, pay rises kick off on the first day of the financial year and compulsory superannuation goes up too.

For parents, leave payments also increase.

For bosses in struggling businesses, however, the day brings pressure that will require help from an improving economy, lower interest rates or via some smart pivoting from those in charge.

But it’s not all bad news for bosses.

The only clearcut plus about July is that historically it’s a good month for stocks. Why? Well, many investors sell losing stocks before July 1 to offset their tax bills on the stocks sold that had a capital gain. That creates a buying opportunity in July.

As the chart below shows, the month is a good one for local share players. Bosses of listed companies should like July because the share price of their companies should rise.

But back to the outlays for employers and the boosts to the bottom lines of others.

Here’s a summary of the big hip pocket changes that start on Tuesday:

1. The minimum wage increases by 3.5% going from $24.10 an hour (or $915.90 a week) to $24.95 an hour (or $948 a week).
2. Award wages also go up by 3.5%, which affects 2.9 million workers.
3. Centrelink indexation payments go up by 2.4%.
4. Superannuation payments rise from 11.5% to 12%.
5. Paid parental leave goes to 24 weeks, or 120 days.
6. Support for students and apprentices, with student loan debts to be cut by 20% and student loan paybacks now will start when incomes reach $67,000 a year.
7. Energy bill relief of another $150 comes along from July 1 for households and about one million small businesses.
8. The Government will pay about 30% of the cost of installing a battery system alongside solar energy for households and businesses. This is the Cheaper Home Batteries program.
9. An aged pension will be more accessible, with changes to the tests for qualifying for a pension.

While many of these changes put pressure on employers and the Government, the latter has more of a role to play. This is because we're seeing signs that the 13 interest rate rises since 2022 have hurt the economy.

Thankfully, inflation is looking under control and the July rate cuts will help households start spending, which businesses need to see. Businesses will like the news that economists such as AMP’s Shane Oliver said on Friday:

“We continue to expect the RBA to cut rates again in July, August, November and February.”

Provided the Trump tariffs don’t KO the outlook for global growth, then lower rates and generous government spending should send the local economy’s growth in the right direction.

And employers will need these pluses to cope with the negatives that July1 is bringing to their bottom lines.