A new tax year has begun and with it comes a number of changes for individuals and businesses. Read on for some of the key changes that will effect you and/or your business from 1 July 2024.
Individual
Income Tax
The stage 3 tax cuts are now live and apply to all salary payments made from 1 July. The new rates mean that every wage earning taxpayer will receive some reduction in the tax they are paying or are liable for. The new rates are:
| Tax Years from 1 July 2020 to 30 June 2024 | Tax Years from 1 July 2024 | ||
| Taxable Income $ | Marginal Tax Rate % | Taxable Income $ | Marginal Tax Rate % |
| 0 – 18,200 | Nil | 0 – 18,200 | Nil |
| 18,201 – 45,000 | 19 | 18,201 – 45,000 | 16 |
| 45,001 – 120,000 | 32.5 | 45,001 – 135,000 | 30 |
| 120,001 – 180,000 | 37 | 135,001 – 190,000 | 37 |
| Above 180,000 | 45 | Above 190,000 | 45 |
The above rates do not include the Medicare Levy which remains at its current level of 2 per cent.
Superannuation
All employees will receive an increase in the minimum superannuation guarantee (SG) entitlement. The minimum SG rate will increase from 11 per cent to 11.5 per cent from 1 July 2024.
Student Loans
Effective from 1 June 2023, the way HELP loans are increased by indexation each year is to be amended so the lower of the Consumer Price Index (CPI) or the Wage Price Index will be used to apply indexation to HELP loans. Previously, HELP loans were indexed solely by reference to CPI.
The Australian Taxation Office will automatically adjust any outstanding HELP loan balance that was indexed on 1 June 2023 and on 1 June 2024, and apply any resulting credit to the individual’s HELP account.
Business
Minimum Wages
From 1 July 2024, the National Minimum Wage will increase by 3.75%. This means the new National Minimum Wage will be $24.10 per hour, or $915.90 per week.
This increase will apply from the first full pay period starting on or after 1 July 2024.
Superannuation
All employers will be required to pay an increase in the minimum superannuation guarantee (SG) entitlement to their employees. The minimum SG rate will increase from 11 per cent to 11.5 per cent from 1 July 2024.
Instant Asset Write-Off Scheme
The instant asset write-off scheme for small business will be extended for another year to 30 June 2025. This scheme applies to small businesses with an aggregated annual turnover of less than $10 million. This will enable small businesses to instantly write off eligible depreciating assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025.
The $20,000 threshold applies on a per asset basis, so small businesses can instantly deduct the cost of multiple assets by 30 June 2025.
Assets costing $20,000 or more, which are not eligible for the scheme, can be placed into the small business simplified depreciation pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter.
How We Can Help
If you require any advice regarding taxation law, please do not hesitate to contact our expert lawyers at admin@valorumlaw.com.au or voregan@valorumlaw.com.au. Our expert tax lawyers will be on hand to assist you.
The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.
Contributors: Paul O’Regan
