The 2024/25 Federal Budget was announced on 14th May 2024 with the stated aim to assist with
cost-of-living pressures and stimulate growth over the long-term. There were no surprises given most
of the spending initiatives and tax cuts were flagged prior. A few of the more relevant points to
consider in the upcoming 12 months include:
- Legislated ‘Stage 3’ Tax Cuts – Commencing 1 July 2024
Most taxpayers will receive a tax cut next month. The table below reflects the changes by the
current Government announced early 2024.
- Increase in superannuation guarantee contributions from 11% to 11.5% start 1 July 2024.
- Increase in FY25 concessional (before tax) contribution threshold to $30,000 (from $27,500).
- Increase in FY25 non-concessional (after tax) contribution threshold to $120,000 (from $110,000).
- Increased ability to bring forward 3 years of contributions of $360,000 (from $330,000).
- Small Business Support – $20,000 Instant Asset Write-off
Small businesses (with an aggregated annual turnover of less than $10M) will continue to be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30th June 2025. - Energy Bill Relief Fund
The Government will extend and expand the Energy Bill Relief Fund to provide a $300 rebate to all Australian households and a $325 rebate to eligible small businesses on 2024-25 bills. - Division 7A interest Rate now 8.27%
The ATO prescribed rate for individuals borrowing money from Pty Ltd companies has increased to a punitive rate. If you have a Div7A it may be worth looking at your alternative funding options.