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Whether you are an employer or an employee, it's crucial to prepare for the end of the financial year (EOFY). As an Australian tax resident, understanding your tax and superannuation obligations is essential to ensure a smooth transition into the new financial year.
What’s changing on 1 July 2024?
Here’s a summary of the key changes coming into effect on 1 July 2024:
Tax cuts reduce personal income tax rates and change the thresholds.
Superannuation guarantee increases from 11% to 11.5% - check the impact on any salary package arrangements.
Superannuation caps increase from $27,500 to $30,000 for concessional super contributions and from $110,000 to $120,000 for non-concessional contributions.
Luxury car tax threshold increases to $91,387 for fuel-efficient vehicles and $80,567 for all others.
Car limit for depreciation increases to $69,674.
$300 energy relief credit for households/$325 energy relief credit for business comes into effect (credited automatically quarterly).
Pay as you go (PAYG) withholding
From 1 July, the individual income tax rate thresholds and tax tables will change, which will impact your PAYG withholding for the 2025 tax year.
Resident tax rates 2023–24
Tax Rates (%) | Current Taxable Income Range ($) | From 1 July 2024 ($) |
0 | 0—18,200 | 0—18,200 |
16 |
| 18,201—45,000 |
19 | 18,201—45,000 |
|
30 |
| 45,001—135,000 |
32.5 | 45,001—120,000 |
|
37 | 120,001—180,000 | 135,001—190,000 |
45 | >180,000 | >190,000 |
Superannuation guarantee (SG) rate change
From 1 July, the SG rate will increase to 11.5%. Make sure you pay your SG contributions by 28 July in full, on time and to the right fund.
Non-concessional contributions caps & Contributions caps
Concessional contributions include:
employer contributions (including contributions made under a salary sacrifice arrangement)
personal contributions claimed as a tax deduction.
From 1 July 2024, the contributions cap increases from $27,500 to $30,000.
The non-concessional contributions cap:
The maximum amount of after-tax contributions you can contribute to your super each year without contributions being subject to extra tax.
From 1 July 2024, the non-concessional contributions cap increases from $110,000 to $120,000.
Changes to car thresholds
Income tax
The car limit for 2024–25 is $69,674. This is the highest value you can use to calculate depreciation on a car where both of the following apply:
you use the car for business purposes
you first use or lease the car in the 2024–25 income year
As a business owner, you can claim a tax deduction for expenses for motor vehicles you use for business purposes.
If you use a motor vehicle for both business and private purposes, you can only claim a deduction for the business part. You must be able to show the percentage you claim as business use and have records to support your claim.
Goods and services tax (GST)
If you buy a car and the price is more than the car limit, 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.
Luxury car tax (LCT)
The LCT threshold for 2024–25 is:
$91,387 for fuel-efficient vehicles. This is in line with an increase to the motor-vehicle purchase sub-group of the Consumer Price Index (CPI)
$80,567 for all other luxury vehicles, in line with an increase in the ‘All Groups’ CPI.
If you’re looking to buy a luxury car, remember to be cautious of those who offer to buy one from a dealer on your behalf at a discount. This may be a scheme to evade LCT. You may be at risk if they don’t have the right insurance or if the car is damaged or defective.
Single Touch Payroll (STP) Reporting
Remember to make STP finalisation declarations by 14 July for all employees paid during the financial year. Make sure to:
Check your employees' year-to-date amounts for accuracy
Ensure your declaration is for the 2023–24 financial year
If you discover any mistakes, correct your STP data promptly and re-finalize. Good record-keeping practices and regular reviews of your payroll policies and procedures are essential to adapt to any changes that might impact your business.
Energy relief credit
All Australian households will receive a $300 rebate from the Energy Bill Relief Fund to ease cost of living pressures in the 2024-25 financial year. Some business could be eligible for a $325 annual rebate from the Energy Bill Relief Fund in the 2024-25 financial year if it meets the state or territory definition of electricity "small customer", based on annual electricity use.
How payments will be made:
From 1 July 2024, it’ll apply the rebates directly into customers’ electricity accounts in quarterly instalments. The timing of the quarterly rebates depends on when you receive your bill. If you receive your own bill there’s nothing you need to do, it’ll happen automatically.
No matter whether you are an employer or an employee, these changes taking effect on July 1 will impact your life in Australia. Staying informed and prepared is key to navigating these updates smoothly. If you have any questions or need assistance, please contact us to find the best solutions tailored to your needs.