2024 Budget - Personal Tax Rates
CoggerGurry • May 16, 2024
In the 2024–2025 Federal Budget, the Government did not announce any further changes to the personal tax rates.
The Government’s revised Stage 3 tax changes (as announced on 25 January 2024 and enacted into law by the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024) commence from 1 July 2024. The Treasurer said all 13.6 million taxpayers will receive a tax cut from 1 July 2024. The average annual tax cut is $1,888 (or $36 a week).
The tax rates and income thresholds from the 2024-25 for residents (as already legislated) are:
• taxable income up to $18,200 – nil;
• taxable income of $18,201 to $45,000 – nil plus 16% of excess over $18,200;
• taxable income of $45,001 to $135,000 – $4,288 plus 30% of excess over $45,000;
• taxable income of $135,001 to $190,000 – $31,288 plus 37% of excess over $135,000; and
• taxable income of more than $190,001 – $51,638 plus 45% of excess over $190,000.
This means, when compared to 2023–2024, that for 2024–2025 the 19% tax rate has been reduced to 16%; the 32.5% tax rate has been reduced to 30%; the 37% tax rate threshold has been increased from $120,000 to $135,000; and the 45% tax rate threshold has been increased from $180,000 to $190,000.
Scams are getting trickier, but there are some simple things you can do to keep your accounts safe: Use strong passphrases, not just passwords Instead of using the same password everywhere, try a passphrase—like a short sentence or four random words. Make it at least 14 characters long and mix in numbers, symbols, and upper/lowercase letters. Turn on Multi-Factor Authentication (MFA) MFA means you need more than just a password to log in—like a code sent to your phone or using your fingerprint. It makes it much harder for scammers to get in, even if they have your password. Keep your devices safe Lock your phone and computer with a passcode or biometrics (like Face ID). Set them to auto-lock if you leave them for a bit. Turn on “find my device” features so you can lock or erase your data if your device goes missing. Be suspicious of unexpected calls, emails, or texts If someone contacts you out of the blue, don’t rush. Don’t click on links or share personal info unless you’re sure it’s legit. Go directly to the organisation’s website and contact them using the official phone number or email. If you have any concerns or feel as though you may be a victim of a scammers, please contact us 03)5571 0111
If you’re planning to upskill or undertaking professional development this year, you may be eligible to claim some of your self-education expenses in your 2024–2025 income tax return. You incur self-education expenses when you: • take courses at an educational institution (even if you don’t gain a formal qualification); • undertake training provided by an industry or professional organisation. • attend work-related conferences or seminars; or • do self-paced learning and study tours in Australia or overseas. Your self-education expenses need to have a sufficient connection to your current employment income in order to make a claim. This means that your study must either maintain or improve the specific skills or knowledge you use in your current role or be likely to result in increased income in your current role. If you meet the eligibility criteria you may be able to claim a deduction for: • tuition, course or seminar fees incurred in enrolling in a full fee paying place; • general course expenses (eg stationery, internet usage); • depreciation on assets like laptops; • transport costs between home or work and your place of study. • accommodation and meals when your course requires you to be away from home for one or more nights; or • interest on loans where you use the funds to pay for deductible self-education expenses. If you would like to know more, you can click Here
In today's sharing economy, platforms like Airbnb have made it easier than ever to earn extra income by renting out a spare room or your entire home – but many Australians are unaware of the tax implications that come with these arrangements. The ATO has intensified its focus on all aspects of the sharing economy, particularly short-term rental arrangements, and has sophisticated data-matching capabilities with third-party platforms like Airbnb. This means they can identify discrepancies between what’s reported on your tax return and what the platforms' records show. When you rent out all or part of your residential property through digital platforms, the ATO requires you to declare this income on your tax return. Keeping meticulous records of all rental income earned is essential, as is maintaining documentation of expenses you intend to claim as deductions. One area where many property owners get caught out is capital gains tax (CGT). While your main residence is typically exempt from CGT, this exemption can be partially lost when you rent out portions of your home. The reduction in your exemption is calculated based on the floor area rented and the duration of the rental arrangement. This is a crucial consideration if you're thinking of selling your property in the future, as it could significantly impact your tax position. When it comes to deductions, you can claim a portion of expenses related to the rented space, including council rates, loan interest, utilities, property insurance and cleaning costs. The deductible amount depends on both the percentage of the property being rented and the duration of the rental period throughout the financial year. Platform fees or commissions charged by services like Airbnb are often 100% deductible, providing some relief against your rental income. As with all income items, you will need to maintain statements from rental platforms showing your income, along with receipts for any expenses you plan to claim. Without proper documentation, you risk having legitimate deductions disallowed during an ATO review or audit, potentially leading to additional tax liabilities. If your property is located in Victoria, the short stay levy of 7.5% of total booking fees may also apply. Please contact our office if you have any questions or queries - 03) 5571 0111
