What a year to date this has been for changes!
There have been numerous legislative changes passed in the last few months and with the changes that were already planned, it appears almost everyone would be affected in some way.
Here are just a few of the changes that may impact you. You can expect that your Adviser will be reviewing the impact of these changes on your current strategies.
The revised stage 3 tax cuts are now law, having passed parliament on 27 February 2024 and received assent on 5 March 2024.
The changes are:
- a reduction from the 19% tax rate to 16% for incomes between $18,200 and $45,000.
- a reduction of the 32.5% tax rate to 30% for incomes between $45,000 and a higher $135,000 threshold.
- an increase to the threshold at which the 37% tax rate applies from $120,000 to $135,000.
- an increase in the threshold at which the 45% tax rate applies from $180,000 to $190,000.
Superannuation
- Last chance to use any unused concessional contributions from 2018/19.
- The contribution caps will be increased from 1 July 2024 with concessional contributions increasing from $27,500 to $30,000. Non-concessional contributions will increase from $110,000 to $120,000.
- This will see the increase in the maximum super contribution base used to determine the maximum limit on any individual employee’s earnings base for each quarter of any financial year go from $62,270 to $65,070.
- Super Guarantee rates (SGC) will increase from the current 11% to 11.5% on 1 July 2025.
- The general transfer balance cap will remain at $1.9 million for 2024/25.
- The preservation age finally hits 60 on 1 July 2024.
Age Pension
The Work Bonus was increased temporarily from $7,800 to $11,800 units up until 31 December 2023, Recent legislation has permanently increased this from 1 January 2024.
We have also seen an increase in age pension as of the 20 March. Indexing of age pension occurs on 20 March and 20 September.
If you wish to understand how these changes may impact you, and potentially take advantage of them to help you build your life of true wealth, please contact our office to discuss with one of our Advisers.
Katrina Dhu (MFinPlan, GradDipFinPlanC, DFS(FP), ADFS[FP]) is a representative of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.
Any information provided to you was purely factual in nature. It has not been taken into account your personal objectives, situation or needs. The information is objectively ascertainable and is not intended to imply any recommendation or opinion about a financial product. This does not constitute financial product advice under the Corporations Act 2001 (Cth). It is recommended that you obtain financial product advice before making any decision on a financial product such as a decision to purchase or invest in a financial product. Please contact us if you would like to obtain financial product advice.