What does the 2023-24 Budget mean to me?

Individuals

  • No changes to personal income tax rates for FY2024 ended on 30 June 2024:

    • 32.5% for income between $45,001 to $120,000

    • 37% for income between $120,001 to $180,000

    • 45% for income over $180,000

     

  • Further tax cuts from 1 July 2024:

    • 30% for income between $45,001 to $200,000

    • 45% for income over $200,000

  • Low and Middle Income Tax Offset (LMITO) which provided a tax offset of between $675 and $1,500 in the 2021-22 income year, is no longer available in the current 2022-23 income year and future income years

  • Medicare levy low-income thresholds will increase for the 2022-23 tax year and later income years:

    • $24,276 for singles

    • $40,939 for families (+$3,760/child)

    • $38,365 for single seniors

    • $53,406 for senior families

  • Medicare levy exemption for lump sum payments in arrears from 1 July 2024 for low-income taxpayers

Small Businesses

  • Temporary full expensing (TFE) and the temporary loss carry-back tax offset will end on 30 June 2023

  • Instant asset write-off threshold to be temporarily increased to $20,000 for FY2024

  • An additional 20% deduction (max. $20,000 per business) on spending that supports electrification and more efficient use of energy for small businesses with an annual turnover of less than $50 million

  • Lodgment penalty amnesty for small businesses with an aggregated turnover of less than $10 million covering lodgment of outstanding tax statements due from 1 December 2019 to 28 February 2022 if lodged from 1 July 2023 to 31 December 2023

  • GDP adjustment factor for PAYG and GST instalments reduces from 12% to 6% 

  • From 1 July 2026, employers will be required to pay their employees’ superannuation guarantee entitlements at the same time as their salary and wages paid

  • Small businesses will be permitted up to four years to amend their income tax returns from 1 July 2025

Superannuation

  • Increase in the minimum superannuation guarantee (SG) rate from 10.5% to 11% from 1 July 2023

  • Superannuation guarantee to be paid on Employees’ payday from 1 July 2026

  • The concessional tax rate for Super account balances above $3 million is proposed to increase to 30% from 1 July 2025

Housing

  • Expanding the eligibility criteria for the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee from 1 July 2023

  • Reducing the withholding rate for fund payments from Managed Investment Trusts (MITs) holding Build-to-Rent (BTR) properties to 15% (currently 30%) from 1 July 2024

  • Increasing the capital works tax deduction (depreciation) rate for construction costs from 2.5 % to 4% per year for BTR projects that satisfy certain eligibility criteria

For full details on the federal budget, visit the 2023-24 Budget website.

Alternatively, feel free to contact one of our specialists today to make a smart financial decision with the new budget.