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Writer's pictureTax ProActive

Key Changes in the Australian Federal Budget 2024-2025

Updated: May 30



As part of our commitment to keeping you informed, Tax Proactive is pleased to provide you with an update on the key changes announced in the Australian Federal Budget 2024-2025, as well as other significant changes that will commence on 1 July 2024, which may impact your personal finances and business operations.


Here's what you need to know...


Personal Finance Specific Changes:


• Personal Tax Cuts:

Effective from 1 July 2024, tax cuts will be implemented. 

The tax rate for incomes between $18,201 and $45,000 will decrease from 19% to 16%, and the rate for incomes between $45,001 and $135,000 will reduce from 32.5% to 30%.


Here is the link to the new tax table for your reference: https://www.taxproactive.com.au/post/australian-tax-rates-for-2024-2025


• Cost of Living Measures:

The government will provide a $300 rebate for energy bills to more than 10 million households the federal government proposes to pay energy providers $300 for each residential electricity customer (some small businesses will also get $325) for the 2024-25 financial year, which will be applied as a quarterly credit on bills.


Let’s hope that the energy providers don’t increase their charges in the meantime.



Changes in Superannuation:


• Super Guarantee Rate Increase:

The Superannuation Guarantee rate will increase from 11% to 11.5% on 1 July 2024, and then from 11.5% to 12% on 1 July 2025.


• Super Contributions Caps Increase:

From 1 July 2024, the concessional contributions cap will be raised from $27,500 to $30,000, and the non-concessional contributions cap will increase from $110,000 to $120,000. The bring-forward cap will also increase to $360,000.



Business-Specific Changes:


• Instant Asset Write-Off:

Small businesses, with aggregated turnover of less than $10 million, will 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 between 1 July 2023 and 30 June 2025.


The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets.


Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that.



Consultation and Advice:


We understand that tax changes can be complex, and their impact varies widely depending on your individual circumstances. We are here to help you understand these updates and integrate them into your tax and financial planning effectively.


We invite you to call us at Tax Proactive to arrange an appointment to discuss tax planning for you, your business, and your family before 30 June 2024.

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