What are the changes?
- Reduce 19% tax rate to 16% (for incomes between $18,200 and $45,000)
- Reduce the 32.5% tax rate to 30% (for incomes between $45,000 and $135,000)
- Increase the threshold at which the 37% tax rate applies from $120,000 to $135,000
- Increase the threshold at which the 45% tax rate applies from $180,000 to $190,000
Changes Outlined
| Up to $18,200 | NIL |
| $18,201 to $45,000 | 16% on anything over $18,200 |
| $45,001 to $135,000 | $4,288 + 30% on part over $45,000 |
| $135,001 to $190,000 | $31,288 + 37% on part over $135,000 |
| $190,001 and over | $51,638 + 45% on part over $190,000 |
Bringing Deductions Forward
Gifts and Donations
- If you have a tradition of gifting and donating to appeals and telethons later in the year
- Consider making these donations to the charities before June
Rental Properties
- Do you have a rental property that’s looking sad and could do with a coat of paint or perhaps just needs gutters cleaned?
- Get onto it now, as you’ll be bringing the deduction into 2024 reducing your rental income and keeping your tenants happy at the same time.
Superannuation
- Consider making after-tax contributions into your Superfund
- Be mindful of contribution caps, Division 293 tax on contributions and seek financial advice prior to taking action
Sole Traders
Do you have a small business which you operate through your name?
Consider These Possibilities:
Depreciation
- Currently small business entities can immediately deduct the business portion of 100% of the cost of most depreciating assets up to $1,000
- This threshold however may soon increase to $20,000 for the 2023-24 income year
Obsolete Stock
- Write off stock before June 30th 2024 for a full tax deduction
Log Book
- Has your business travel increased Post-COVID?
- Your car expenses claim may be higher than you thin
- Consider starting a new logbook
- A logbook must be kept for 12 weeks, the 12 weeks may overlap two income years provided it includes part of the year
Deductible Expenses
- Stock up on those consumables that are used often and bring forward those deductible expenses before 30th June 2024
Prepay Deductible Expenditure
- All taxpayers may claim deductible prepaid expenditure where the cost is below $1,000 (excluding GST) or is required by law (eg. Car Registration)
- Where the expenditure is $1,000 or more, small business entities can deduct the full amount of prepaid expenditure if it relates to a period of 12 months or less
This is also available to non-business expenditure of individuals (eg. Work Related Expenses or Rental Property Expenses)
Insurance
- Consider your level and type of cover now and take out new or increase your policies before 30th June 2024
Skills & Training
- Take advantage of the small business entity skills and training boost before it ends on 30th June 2024
- The Boost provides enables small business entities to deduct an additional 20% of expenditure that is incurred for the provision of eligible external training courses to their employees by registered providers in Australia
Defer Income
- Where possible, push income into the 2024-25 year where it will be taxed at lower rates
Salary Sacrifice
- Consider salary sacrificing into your Super before 30th June 2024
- Be mindful of the contribution caps, seek financial advice prior to taking any action
Interest Received
- Ensure term deposits mature AFTER 30th June 2024
Recent Comments