Tax cuts 2024 and changes in the new financial year

As we enter a new financial year, stay informed about the 2024 tax cuts and latest super changes impacting your financial planning. The upcoming adjustments, including tax cuts and increases in superannuation contributions, present new opportunities and considerations for every working Australian. Let’s dive into what these changes mean for you.

Tax rate changes 2024

Starting from 1 July, every working Australian will benefit from a tax cut:

• reduce the 19% tax rate to 16%
• reduce the 32.5% tax rate to 30%
• increase the threshold above which the 37% tax rate applies from $120,000 to $135,000
• increase the threshold above which the 45% tax rate applies from $180,000 to $190,000

*Above tax rates exclude the 2% medicare levy

This means someone earning $75,000 will see an additional $1,554 in their pocket, supporting lower-income earners. Meanwhile, individuals $135,000+ will experience less favourable outcomes than the previously proposed tax changes.

This shift is a significant change from the coalition government’s earlier legislation.

Superannuation guarantee increase

The new financial year also brings a rise in the superannuation guarantee from 11% to 11.5%. So, if you’re an employee receiving the minimum superannuation contribution from your employer, you’ll see an increase in your superannuation savings.

This adjustment is crucial for your long-term retirement planning and may require you to reassess your superannuation contribution strategy, especially if you aim to maximise your concessional contributions each year.

Super cap increases

Additionally, both the concessional and non-concessional contribution caps are set to increase. These caps are indexed, with the concessional contribution cap rising by $2,500 to $30,000, and the non-concessional contribution cap increasing by $10,000 to $120,000. These higher caps will allow you to contribute more to your superannuation to enhance your retirement savings and tax benefits.

Tax cut opportunities and adjustments

The new financial year’s tax cuts and superannuation changes bring significant opportunities and adjustments. By understanding these updates, you can make informed decisions to optimise your financial strategy and ensure you’re making the most of the available benefits.

At Precision Wealth Management, we’re here to help you navigate these changes and plan effectively for your future.

Tax cuts 2024 and changes in the new financial year

Ready to maximise your financial potential with the latest tax cuts and superannuation updates? Contact us at Precision Wealth Management today for personalised advice and strategies tailored to your financial goals. Let’s make the most of these changes together.

DISCLAIMER – The information provided in this blog is general and does not consider your individual financial needs or objectives. It does not constitute personal advice. We recommend seeking out professional and independent financial, legal and tax advice which has been designed for your individual situation before acting on any information contained below.