As we approach the new financial year, it’s important to be aware of several changes coming into effect from 1 July 2024. These updates impact various aspects of payroll, superannuation, tax, and employment benefits. Below, we outline the key changes to help you prepare and ensure compliance.

Termination Payments

Superannuation

Superannuation contributions and caps are changing:

Superannuation Guarantee Rate: Increases to 11.5%.

Maximum Contributions Base (per quarter): Rises to $65,070.

Concessional Contributions Cap (annual): Increased to $30,000.

Non-Concessional Cap (annual): Increased to $120,000.

All income paid on or after 1 July 2024, including back pays, will be subject to the new superannuation guarantee rate of 11.5%.

Payment 1 July 2023 1 July 2024
Superannuation Guarantee 11% 11.5%
Maximum Contributions Base (per quarter) $62,270 $65,070
Concessional Contributions Cap (annual) $27,500 $30,000
Non- Concessional Cap (annual) $110,000 $120,000

Employer Contributions

Employer super contributions under the cap are taxed at 15%. Contributions exceeding the cap are taxed at marginal rates. Employees with taxable income (including super) over $250,000 will face a higher tax rate of 30%.

Concessional Contribution Cap

Since 1 July 2018, employees can use their unused concessional caps on a rolling basis for five years. Managing these caps is not a payroll function and employees should consult their super fund or financial adviser.

Cents per Kilometre

From 1 July 2024, the ATO cents per kilometre rate will increase to $0.88. The Clerks Award comparison rate is yet to be announced.

Payment 1 July 2023 1 July 2024
ATO cents per km $0.85 $0.88
Clerks Award comparison $0.95 TBA

Fair Work Updates

Significant changes include:

National Minimum Wage: Increases to $915.90.

Wage Increase in Awards: Set at 3.75%.

These changes apply from the first full pay period starting on or after 1 July 2024.

Payment 1 July 2023 1 July 2024
National Minimum Wage $882.80 $915.90
Wage Increase in Awards 5.75% 3.75%
Government Paid Parental Leave $882.75 TBA
Unfair Dismissal High Income Threshold $167,500 TBA

Personal income tax rates and thresholds

The government has announced changes to individual income tax rates and thresholds effective 1 July 2024:

Current Tax Rate

Taxable income Tax on this income
$0 – $18,200 Nil
$18,201 – $45,000 19%
$45,001 – $120,000 32.5%
$120,001 – $180,000 37%
$180,001 and over 45%

NEW Tax Rates from 1 July 2024

Taxable income Tax on this income
$0 – $18,200 Nil
$18,201 – $45,000 16%
$45,001 – $135,000 30%
$135,001 – $190,000 37%
$190,001 and over 45%

Working Holiday Maker (WHM) Tax Rates

Current WHM Tax Rate

Taxable income Tax on this income
$0 – $45,000 15%
$45,001 – $120,000 32.5%
$120,001 – $180,000 37%
$180,001 and over 45%

WHM Tax Rate from 1 July 2024

Taxable income Tax on this income
$0 – $45,000 15%
$45,001 – $135,000 30%
$135,001 – $190,000 37%
$190,001 and over 45%

Fringe benefits

 

Item FBT from 1 April 2023 FBT from 1 March 2024
FBT rate 47% 47%
Type 1 Gross-up Rate (with GST) 2.0802 2.0802
Type 2 Gross-up Rate (without GST) 1.8868 1.8868
RFBA threshold Exceeds $2,000 Exceeds $2,000
RFBA minimum grossed-up value $3,773 $3,773
Minor benefits threshold Under $300 Under $300
Car parking threshold $10.40 per day TBA
Benchmark interest rate 7.77% 8.77%

Living Away From Home

Allowance (food)

Family Groupings Reasonable Food Component (weekly) Statutory Food Component (weekly) Exempt Food Component (weekly)
One Adult $331 $42 $289
Two Adults $497 $84 $413
Three Adults $663 $126 $537
One Adult and One Child $414 $63 $351
Two Adults and One Child $580 $105 $475
Two Adults and Two Children $663 $126 $537
Two Adults and Three Children $746 $147 $599
Three Adults and One Child $746 $147 $599
Three Adults and Two Children $829 $168 $661
Four Adults $829 $168 $661

 

Important LAFHA rules

LAFHA is paid in two components:

  • Exempt Food Component – when using the ATO formula.
  • Exempt Accommodation Component – for reasonable accommodation costs.

Eligibility Considerations

  • You must be required to live away from home for work-related purposes.
  • The period you will be away from home is greater than 21 days, but no greater than 12 months.

You must intend to return home and be maintaining a house in Australia that is available to move back into.

  • LAFHA declaration must be completed.
  • Documentation must show that the statutory component has been deducted.

Instant asset write off extension

As part of the 2024–25 Budget, the government announced it will continue to improve cash flow and reduce compliance costs for small businesses by extending the $20,000 instant asset write-off by a further 12 months until 30 June 2025.

Luxury car tax

The following table lists the LCT thresholds for the financial year the car was imported, acquired or sold.

If you import or sell a car with a GST-inclusive value above these LCT thresholds, you must pay LCT except in certain circumstances. In general, the LCT value of a car includes the value of any parts, accessories or attachments you supplied, or imported, at the same time as the car.

Financial year Fuel efficient vehicles Other vehicles
2024-25 $91,387 $80,567
2023-24 $89,332 $76,950
2022-23 $84,916 $71,849
2021-22 $79,659 $69,152
2020-21 $77,565 $68,740
2019-20 $75,526 $67,525
2018-19 $75,526 $66,331
2017-18 $75,526 $65,094
2016-17 $75,526 $64,132
2015-16 $75,375 $63,184
2014-15 $75,375 $61,884
2013-14 $75,375 $60,316
2012-13 $75,375 $59,133

Car GST Thresholds

If you buy a car and the price is more than the car limit ($69,674), the maximum GST credit you can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2024–25 income year, the maximum GST credit you can claim is $6,334 (that is, 1/11 × $69,674).

You can’t claim a GST credit for any luxury car tax you pay when you buy a luxury car, even if you use it for business purposes.

Staying informed about these updates is crucial for compliance and effective payroll management. If you have any questions or need assistance, please feel free to contact us. At Gecko Cloud Solutions, we are committed to helping you navigate these changes smoothly.

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