Tax cuts for every Australian taxpayer
The Government is delivering tax cuts for all 13.6 million Australian taxpayers from 1 July 2024 with the objectives to ease cost‑of‑living pressures for middle Australia, reverse bracket creep and boost labor supply.
From 1 July this year, the Government will:
- reduce the 19 per cent tax rate to 16 per cent
- reduce the 32.5 per cent tax rate to 30 per cent
- increase the income threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
- increase the income threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
With the end of the financial year fast approaching now is the time to start planning for next year. If you’d like to discuss what we can do for your business call us or get in touch today.
2024-25 Budget
The government announced it will continue to improve cash flow and reduce compliance costs for small businesses including the extension of the $20,000 instant asset write-off by a further 12 months until 30 June 2025.
If you want more information – click here
From 1 July 2025 a 30% tax rate will be applied to earnings on superannuation balances above $3 million, this is an increase on the current 15%.
To find out more – click here
If you’d like to discuss how the budget affects your business call us to book an appointment
Superannuation Guarantee is going up 1st July to 11.5%
On 1 July 2024, the superannuation guarantee (SG) rate is increasing from 11% to 11.5%. This increase can have a positive impact on the amount of super that employees save and can spend in retirement.
From an employers perspective it is a further increase in business costs, and there is one more increase planned on 1 July 2025 to 12%.
For more details click here.
Have you considered aligning your business financial year with the calendar year or another date?
Have you considered aligning your business financial and tax year with the calendar or other year?
Valid circumstances to change may include:
- the need to synchronise your balance dates with the controlling entity of your economic group or the entity that holds the majority of your membership interests
- the wish to align your balance date with the income tax consolidated group you have just exited because your accounting systems are already set up to meet the former income tax consolidated group’s reporting requirements and it will be too costly to adjust your systems to a new balance date
- an ongoing event, industry practice, business driver or other ongoing circumstance that makes 30 June impractical as a basis to calculate taxable income. This would include difficulties with ascertaining inventory for stock valuations, and having multiple financial reporting requirements (for example, a franchise to a franchisee).
This will make reporting and compliance easier for your business!
A one off change can make things simpler.