2023-2024 Federal Budget Write-up
Employers will need to make super contributions on the same day as they pay their employees’ salary and wages. Currently they only need to contribute to super once a quarter. The Government estimates this would increase the retirement savings of a 25-year-old median wage earner by $6,000. This will take effect from the 1st of July 2026
Increased tax on earnings on balances over $3 million
The Government is reducing super tax concessions for people whose total balance exceeds $3 million, bringing the headline tax rate to 30% (up from 15%). The higher tax rate is only payable on earnings corresponding to the proportion of a person’s super that is greater than $3 million. This will take effect from the 1st of July 2025.
Small Business Changes
Energy Bill Relief
Eligible small businesses will receive a rebate of $650 per year and eligible households $500 per year on their power bills. Starting July 2023 and lasting for two years.
Instant Asset Write-off Increase
The Government will improve cash flow for small businesses by temporarily increasing the instant asset write-off threshold to $20,000 for businesses with an aggregated annual turnover of less than $10 million. This will be in place from the 1st of July 2023 until the 30th of June 2024.
Tax Bracket Changes
There were no changes to the tax brackets for the 2023-24 financial year. However changes will be coming in the 2024-25 year as detailed in the table below.
This is only a small selection of points from the 2023-2024 budget. If you would like to read a more in-depth write-up of the budget the government’s own document is linked below.