Welcome to a New Financial Year!

We have entered a new financial year from 01st July 2024 for many taxpayers in Australia. This brings out some changes to tax laws and related matters. RCB Advisors team have summarised some of these changes in this newsletter. Please take time to read these through and feel free to contact our team members for any clarification or assistance.

Stage 3 individual income tax cuts

Stage 3 tax cuts announced by the government took place as at the start of this financial year on 01st July 2024. This will provide tax cuts to all Australian tax resident taxpayers with tax rates of 19% being replaced with 16% for income bands to $45,000 and dropping to 30% for income between $45,000 - $190,000 and no change to top marginal tax rate of 45% for income over $190,000 (up from $180,000 in the previous year). The rate cuts impact all non-resident and working holiday taxpayers too.

Please read more here

Employer SGC Rate up to 11.50%

Employer’s superannuation guarantee charges rate (SGC) to make contributions to their employees is going up from current rate of 11% of the Ordinary Earnings to 11.50% effective 01st July 2024.

Small Business instant asset write-off threshold extension to 30th June 2025 proposed:

The government has announced that the instant asset write-off threshold for small businesses applying the simplified depreciation rules to be $20,000 for the 2023–24 has now been proposed to be extended to 2024–25 income years. Bills to increase this threshold are currently before parliament. The “lock-out” rule preventing a small business entity from choosing to apply the simplified depreciation rules for 5 years after opting out will also continue to be suspended until 30 June 2025. It is likely these will pass both the houses. So, if you are considering investing in any business asset and taking advantage of the instant write-off in the 2024-25 financial year, please take notice of this opportunity. This applies to both new and second-hand assets with some exceptions where this write-off is not available.

Payroll Tax Threshold in Victoria Goes Up from 01st July 2024

Payroll Tax Threshold in Victoria is going up from $700,000 annually to $900,000 annually with monthly threshold at $75,000 per month for monthly returns. The payroll tax rate remains the same at 4.85%.

From 01st July 2025, the threshold will further go up to $1,000,000 annually or $83,333 for monthly returns with tax rate of 4.85% remaining the same.

In all cases, the special discounted pay roll tax rate of 1.2125% applies to all Regional Employers i.e. 85% or more of your total Victorian Taxable wages relate to regional staff across Victoria.

Superannuation – Concessional and non-concessional threshold going up from 01st July 2024

Concessional: The concessional superannuation contribution cap is going up from $27,500 to $30,000 from 01st July 2024. These include the Employer’s superannuation guarantee charge rate (SGC as well as any personal contributions claimed in your personal tax return.

Non-concessional: The non-concessional superannuation contribution cap is going up from $110,000 to $120,000 from 01st July 2024. These are your post tax contributions i.e. contributions, you do not claim a personal tax deduction for.

Please note that are limitations on the above contributions due to age, work status and total superannuation balance requirements so please contact your advisor for further assistance.

For further assistance with the above announcements and opportunities, please contact your RCB Advisors team member as soon as possible.

Source: CCH, ATO and The Treasury