Elevated Accounting Newsletter For June 2024

small business accountant melbourne

ATO debts

Paying your tax bill in full and on time will help you to avoid paying the general interest charge (GIC) that is applied by the Australian Taxation Office, which is currently 11.34% and accrues daily for some overdue debts.

Struggling to pay in full or on time?

You may be eligible for an ATO payment plan. If you would like to discuss your options please give us a call on 03 9682 7011.

Important Dates:

  • 30th June 2024 – End of financial year
  • 1st July 2024 – Superannuation Guarantee increases to 11.5%
  • 31st October 2024 – Due date for 2024 Income Tax Returns (when 2023 ITR was not lodged on time)

State Budget announcements:

Payroll Tax in Victoria
The payroll tax threshold will be increased:
  • Current - $700,000
  • commencing 1 July 2024 — $ 900,000
  • commencing 1 July 2025 — $1,000,000

The deduction associated with the tax-free threshold for payroll tax will begin phasing out for every dollar of wages above $3 million. Businesses with wages above $5 million will not receive any benefit associated with the payroll tax-free threshold.

Please note that payroll tax varies in different states of Australia.

Stamp Duty on Commercial Properties

An annual property tax will replace land transfer duty (stamp duty) on industrial and commercial properties.

As of 1 July 2024, industrial and commercial properties will transition to the new system as they are sold. The annual property tax will be 1 per cent of the property’s unimproved land value and will be payable from 10 years after the transaction. 

Federal Budget announcements:

Superannuation Caps
The government sets superannuation caps and transfer balance caps on contributions made to your super fund, however extra contributions that you make can still be a great way to increase your balance for retirement.

What are the caps on super?

The Australian government sets limits on how much you can tax-effectively add to your super each year which means if you contribute too much you may pay extra tax.

What are the types of super contributions?

There are two types of super contributions:
  • Concessional (before-tax)
  • Non-concessional (after-tax)

Concessional contributions (before-tax)

These contributions come out of your pay before income tax and you pay the 'concessional' rate of 15% tax when it goes into your super. This does increase to 30% if your income plus super contributions equates to more than $250,000 per year.

Examples of a concessional contribution?

Non-Concessional contributions (before-tax)

Non-concessional contributions come out of yours or your spouse's take-home pay after you've paid income tax.

Examples of a non-concessional contribution?

  • Voluntary super contributions you put into your super from your take-home pay, after tax
  • Spouse contributions

This table shows how much you are able to contribute per financial year from 1 July 2023.

Contribution type Cap from 1 July 2023 Total tax rate paid
Concessional (before-tax) contributions $27,500 per year
plus carry-forward amounts since 1 July 2018
15% contributions tax
or 30% contributions tax if your income plus contributions is more than $250,000 per year
Non-concessional (after-tax) personal/voluntary contributions $110,000 per year
or you can also use up to 3 years of cap ($330,000) under bring-forward rules, if your total super balance was less than $1.68m last financial year
or no contributions allowed if your total super balance was $1.9m or more last financial year
No contributions tax - but you do pay your normal income tax, which can be up to 47%

2023-24 concessional and non-concessional contribution caps

The following changes will be effective as of 1st July 2024:

  • The concessional contribution cap will increase from $27,500 to $30,000
  • The non-concessional contribution cap will increase from $110,000 to $120,000
  • The maximum non-concessional cap available under the bring-forward provisions will increase from $330,000 to $360,000

The updated concessional and non-concessional contribution caps are summarised below:

Contribution Caps 2023-2024 2024-2025
Concessional Contributions Cap $27,500 $30,000
Non-Concessional Contributions Cap $110,000 $120,000
Bring forward $330,000 over 3 years $360,000 over 3 years

Tax Rates

Individual tax cuts

From 1 July 2024, the amended Stage 3 tax cuts will come into effect.

Taxable Income ($)
1 July 2020 - 30 June 2024
Marginal Tax Rate
Taxable Income ($)
From 1 July 2024
Marginal Tax Rate
0 - 18,200 Nil 0 - 18,200 Nil
18,201 - 45,000 19 18,201 - 45,000 16
45,001 - 120,000 32.5 45,001 - 135,000 30
120,001 - 180,000 37 135,001 - 190,000 37
Above 180,000 45 Above 190,000 45

*The above rates do not include the Medicare Levy which remains at 2 per cent.

Start the new financial year off on the right foot – give us a call to discuss your plans so we can assist you to:

  • Estimate the amount of income tax payable
  • Estimate the amounts and timing of tax instalments and plan accordingly
  • Work out strategies to potentially minimise tax payable
  • Consider your business goals and profitability
  • Review your superannuation and how this can be incorporated into your tax strategy
  • Check that your business and investment structures fit your goals

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