The 2024-25 Financial Year is upon us and it has brought several new laws which may impact you.

Tax Rate Changes

All workers who earn over the tax-free threshold of $18,200 will pay less tax from 1 July due to Stage 3 Tax Cuts. These were passed by parliament earlier in the year.

The new tax rates will:

• Reduce the 19% tax rate to 16% for incomes between $18,200 and $45,000;
• Reduce the 32.5% tax rate to 30% for incomes between $45,001 to a new $135,000 threshold;
• Increase the threshold at which the 37% tax rate applies from $120,000 to $135,000; and
• Increase the threshold at which the 45% tax rate applies from $180,000 to $190,000.

Superannuation

Superannuation guarantee rate

The amount of superannuation required to be paid by employers will increase as a result of the superannuation guarantee rate. From 1 July 2024 the superannuation guarantee will increase to 11.5% from 11%. From 1 July 2025 the rate will increase to 12% for a final time.

Super contribution caps

From 1 July, you will be able put more money into your super fund through concessional contributions, with the concessional contributions cap increasing from $27,500 to $30,000.

A concessional contribution is made pre-tax, for example through salary sacrifice. These contributions are taxed at 15%, which is lower than the marginal tax rates.

The cap for non-concessional contributions, which are made after tax, will increase from $110,000 per financial year to $120,000.

Employee Entitlements

Paid Parental Leave

Parents will be able to access up to 22 weeks (110 days) of paid parental leave under the Paid Parental Leave scheme, an increase from 20 weeks. This will apply for parents of children who are born or enter into care on or after 1 July 2024.

The amounts of leave will increase again from July 2025 (120 days) and July 2026 (130 days).

These entitlements are claimed through Centrelink unless employers have their own personalised policies.

New Minimum Wage

As of 1 July 2024, the national minimum wage and the modern award minimum wage will increase by 3.75% to $24.10 per hour.

This will see full-time minimum wage employees’ income increase from $882.80 to $915.90 per week.

It is essential that employers are aware of these changes and how they may impact their businesses. Should you have any questions, please don’t hesitate to get in touch with your advisor.