All the 1 July changes you need to know about
All the 1 July changes you need to know about
The new financial year is just around the corner and there are a raft of big changes coming in.
Here is a summary of the key changes:
Stage three tax cuts
The redesigned cuts announced in the May budget come into effect on 1 July.
13.6 million people will receive a tax cut with the average taxpayer saving $1,888 per year.
Minimum wage increase
More than 2.6 million workers will receive at least an additional $33.10 per week from I July after the Fair Work Commission ruled to increase award and minimum wages by 3.75 per cent. This brings the national minimum wage to $24.10 per hour, or $915.91 a week.
Paid parental leave is being expanded
From 1 July 2024, families will receive an extra two weeks of paid parental leave (22 weeks total up from 20 weeks). This will increase to 24 weeks from July 2025 and 26 weeks from July 2026 (see Paid Parental Leave Amendment (More Support for Working Families) Bill 2023, Royal Assent 20 March 2024).
And from 1 July 2025, superannuation will be paid on Paid Parental Leave payments.
Superannuation Guarantee increase
From Monday 1 July, the compulsory superannuation contribution rate will increase from 11% to 11.5%.
You will need to use the new rate to calculate super on payments you make to employees on or after 1 July 2024, even if some or all of the pay period is for work done before 1 July 2024.
Superannuation caps increase
The concessional and non-concessional contribution caps are increasing from 1 July 2024 as follows:
- Concessional contribution cap increases from $27,500 to $30,000
- Non-concessional contributions cap increases from $110,000 to $120,000
- The maximum non-concessional cap available under the bring-forward provisions increases from $330,000 to $360,000.
Luxury car tax threshold increases
The Luxury car tax threshold for 2024-25 is:
- $91,387 for fuel-efficient vehicles
- $80,567 for all other luxury vehicles
$300 energy rebate
All households will receive a $300 power bill rebate over the coming financial year. This will be applied as four $75 quarterly credits.
Energy relief for small businesses
Around one million small businesses will receive $325 off their energy bills over 2024–25. This will be applied as an automatic quarterly credit on energy bills.
$20,000 small business instant asset write-off extended
Small businesses, with an aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2025. This measure extends the 2023-24 Budget announcement to the 2024-25 financial year.
Further help:
If you have any questions or would like further information, please contact us.
You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.
