As we all embark on a new financial year, DFK Benjamin King Money would like to provide the below summary of the new changes from 1 July 2024.
New individual income tax rates from 1 July 2024
The new personal income tax rates from 1 July 2024 are:
| Taxable income | Tax on this income |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Please note that the above rates do not include the Medicare levy of 2%.
Tax Savings
- Taxpayers earning up to $45,000 will see tax cuts up to $804.
- Those earning between $45,001 and $146,499 will benefit from tax cuts up to $3,729.
- For incomes above $146,501, the tax savings will be lower compared to previous projections, up to a maximum of $4,529 for those earning $200,000 or more.
Any businesses with employees need to ensure that their payroll systems have taken into account the above income tax changes.
Superannuation Changes
From 1 July 2024, the scheduled 0.5% increase to Superannuation Guarantee Contributions begins. This is an increase from 11.0% to 11.5%.
As above any businesses with employers need to ensure that their payroll systems have taken into account this contribution increase.
The concessional contributions cap from 1 July 2024 has increased to $30,000 per financial year up to 74 years of age, however between the age of 67 and 74, you will need to pass the work test (working 40 hours in a 30 day period) to make concessional contributions.
The annual non-concessional contributions cap from 1 July 2024 has increased to $120,000 provided your total super balance at the end of the previous financial year is less than $1,900,000.
If you have any questions about the content of this article, please contact your DFK Benjamin King Money representative.