Introduction


In this newsletter, we look at some of the important updates for the 2024 financial year.

Please click on the following topic of interest to learn more:

Individuals Update
Business Update
Superannuation Update
Individuals Update

Tax Time 2024


Please take note of the following tips for your 2023/24 individual tax return: 

  1. We cannot start preparing individual tax returns until mid-to-late July. This is a recommendation from the ATO and provides time for employers, banks, Centrelink, etc. to finalise their data with the ATO which is matched with your tax return.  
  1. Where returns are lodged before this information is finalised, the ATO are likely to hold onto refunds or perform audits to correct any errors.
Did you know? We are able to access many of your details including payment summaries from your employer, interest on bank accounts, dividends and private health insurance information directly from the ATO.  This information becomes available to us progressively throughout July.

Our standard fees to complete your 2024 individual tax return are as follows:
  • Tax Return (Individual) - $231 
  • Tax Return (Couples) - $429
  • Additional Schedules - $88 per schedule
Please note that the above is a guide only and fees can vary based on complexity. For a personalised quote please contact our team.

Changes to Income Tax Rates  
The Australian Government has made changes to individual income tax rates and thresholds. This change will apply to all taxable income you earn from 1 July 2024. This means from 1 July, for most taxpayers, you will pay less tax each payday and keep more of what you earn.

The changes will not impact your 2023-24 tax return. For details, please click here.

Cents Per Kilometre Rate Increase
If you're claiming work-related car expenses using the cents per kilometre method, this rate has increased to 85c per kilometre for the 2023-24 income year.

The cents per kilometre rate is an all-inclusive rate and covers all of your eligible car expenses including registration, insurance, repairs, maintenance, fuel, and decline in value. You can't claim a deduction for these costs separately, elsewhere in your return.

NSW Land Tax Thresholds 
You must register for land tax if the value of your taxable land is above the land tax threshold of $1,075,000. Certain land (such as your principal place of residence) is exempt for land tax purposes. You can calculate the value of your taxable land using this link here. If you are concerned whether you may be required to be registered for land tax purposes, please contact our office so we can assist you further.
Business Update

Superannuation Guarantee Payments for Employees
The ATO are now using Single Touch Payroll and superannuation data to increase their audit activity on employers who do not pay their employee’s Superannuation Guarantee or pay it late.

As a reminder, Superannuation must be paid on an employee’s Ordinary Time Earnings at least quarterly as follows:

Quarter Period Due Date
1 1 July – 30 September 28 October
2 1 October – 31 December 28 January
3 1January – 31 March 28 April
4 1 April – 30 June 28 July

Where employers do not pay the correct amount of superannuation guarantee or make a late payment for the quarter, a Superannuation Guarantee Charge (SGC) statement must be lodged. This statement self-assesses interest and penalties on the late payment and dates back to the start of the quarter, not the due date.

If you have any concerns, please contact us.

Small Business Energy Incentive
On 30 April 2023, the Australian Government announced it will provide businesses with an annual turnover of less than $50 million with an additional 20% deduction on spending that supports electrification and more efficient use of energy. This measure is now law.

The energy incentive applies to eligible expenditure on assets between 1 July 2023 and 30 June 2024 ('the bonus period'). It also applies to eligible expenditure on improvements to existing assets incurred during the bonus period.

    The energy incentive helps small businesses make investments like:
  • electrifying their heating and cooling systems
  • upgrading to more efficient fridges and induction cooktops
  • installing batteries and heat pumps.

$20,000 Instant Asset Write-off
The instant asset write-off (IAWO) threshold has temporarily increased from $1,000 to $20,000 for 2023-24. The IAWO allows you to deduct the full cost of eligible assets which cost less than $20,000. 

Eligible assets must be first used or installed ready for use between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply on a per asset basis, so you can instantly write off multiple assets.

Increase to Super Guarantee
The super guarantee rate has increased from 11% to 11.5% from 1 July 2024. The rate used will depend on when your employee is paid, not when the income is earned – therefore the new rate will need to be applied to any payments made on or after 1 July 2024.

Minimum Wages Increase from 1 July 2024
The national minimum wage has increased by 3.75% to $24.10 per hour or $915.90 per week based on a 38-hour week for a full-time employee. For more details, and to ensure you are meeting your employer obligations, please click here.

Company and Business Name Fees Increase
ASIC will increased company and business name fees from 1 July 2024 in line with indexation. Please click here for further details.

NSW Payroll tax thresholds
The payroll tax rate of 5.45% and the annual payroll tax threshold of $1.2 million have not changed for the 2024-25 financial year. If you are concerned whether your business should be registered for payroll tax purposes, please contact our office so we can assist you further. 
Superannuation Update

Change to Contribution Caps
The concessional contribution cap has increased to $30,000 (from $27,500) and the non-concessional (after tax) cap is $120,000 (from $110,000) from 1 July 2024.

Carry-Forward Concessional Contributions
Did you know you may also be eligible to carry forward any unused cap space from the five prior financial years? If your super balance was below $500,000 on 30 June 2024, you may be able to contribute and claim a tax deduction for more than the $30,000 annual limit

Contact us to find out more.

Better Targeted Superannuation Concessions
On 28 February 2023, the Australian Government announced from 1 July 2025 a 30% concessional tax rate will be applied to future earnings for superannuation balances above $3 million

Contact Us

For further details on any of the above, please contact us.



HC Partners Pty Ltd • Oscar Street, Umina Beach • 02 4341 9000 

info@hcpartners.com.au 

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