2024/25 Federal Budget
What changes have come from the 2024/25 federal budget?
First the government has confirmed that the revised personal tax rates cut has been enacted into law. The below tables outline the marginal income tax rates and thresholds that will apply. These rates will apply from 1 July 2024;
The Government has also increased the Medicare levy low- income threshold amount for singles, families and seniors and pensioners and will apply for 1 July 2023.
For each dependent child or student, the family income thresholds will increase by a further $4,027.
All small businesses with an aggregated annual turnover of less than $10 million will be able to claim an immediate deduction of the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use by 30 June 2025.
From 1 July 2025, the instant write off threshold will revert back to (less than) $1000.
In order to combat fraud, the ATO has extended the time it can retain a BAS refund from 14 days to 30 days. All legitimate refunds will be largely unaffected.
The government also announced that it will be paying superannuation on commonwealth funded Paid Parental Leave for births and adoptions on or after 1 July 2025. Eligible parents will receive an additional payment based on the Superannuation guarantee rates, as a contribution to their superannuation fund.
The Government is recalibrating the Fair Work Entitlements Guarantee Recovery Program to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.
The Government has proposed to amend the tax law to give the Commissioner discretion not to use a taxpayers refund to offset old tax debt, where the tax debt had put that old tax debt on hold prior to 1 January 2017.
The Government will provide funding to provide $319.50 per week from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of nursing (midwifery), teaching or social studies.
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