New financial year = new tax rates, caps, and super guarantee.

With the new financial year comes a handful of changes for you to familiarise yourself with. I’ve summarised them for you here.

Income Tax Changes

Starting from 1 July, 2024, there will be significant adjustments to the income tax brackets and rates.

$0 – $18,200: 0% tax rate (no change)
$18,201 – $45,000: 16% tax rate (down from 19%)
$45,001 – $135,000: 30% tax rate (down from 32.5%)
$135,001 – $190,000: 37% tax rate (threshold increased from $120,000)
$190,001 and over: 45% tax rate (threshold increased from $180,000)

These changes aim to provide tax relief across various income levels, with notable decreases in the bottom and middle brackets.

Superannuation changes

From 1 July 2024, the Super Guarantee (SG) rate will increase to 11.5%, continuing its upward trajectory until it reaches 12% by 1 July 2025. This means more of your income will be allocated to your superannuation, enhancing your retirement savings.

Additionally, the contributions caps for the 2024-25 financial year are as follows:

Concessional Contributions Cap: $30,000/year
Non-Concessional Contributions Cap: $120,000/year

For those with a total super balance exceeding $1.9 million, the non-concessional contributions cap will be $0, and the bring-forward rule will not apply.

Travel allowance entitlement changes

We’re still awaiting updates on changes to travel allowance entitlements. Stay tuned, and we’ll keep you informed as soon as more information becomes available.