As expected, the 2024 budget has the most minor changes for small and medium-sized businesses and individuals in my eleven years of practice. Below is a summary of what impacts my client base and things to consider before 30 June.

PERSONAL INCOME TAX MEASURES

Confirmation of the revised stage three personal tax rates commencing 1 July 2024

2024-242024-25 onwards
Table Income ($)Tax Payable ($) Taxable Income ($) Tax Payable ($) 
0 – 18,200 Nil 0 – 18,200 Nil 
18,201 – 45,000 Nil + 19% of excess over 18,200 18,201 – 45,000 Nil + 16% of excess over 18,200 
45,001 – 200,000 5,092 + 30% of excess over 45,000 45,001 – 135,000 4,288 + 30% of excess over 45,000 
200,001+ 51,592 + 45% of excess over 200,000 135,001 – 190,000 31,288 + 37% of excess over 135,000 
  190,001+ 51,638 + 45% of excess over 190,000 

Increased Medicare Levy Low-Income Thresholds

The Government has increased the Medicare levy low-income threshold amounts and phasein ranges for singles, families and seniors and pensioners that apply from 1 July 2023.

The threshold for singles has been increased from $24,276 to $26,000. The family threshold has been increased from $40,939 to $43,846. For single seniors and pensioners, the threshold has been increased from $38,365 to $41,089. The family threshold for seniors and pensioners has been increased from $53,406 to $57,198. The family income thresholds will now increase by $4,027 for each dependent child, up from $3,760. 

HECS Debt

To limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation

SMALL BUSINESS MEASURES

Small Business Instant Asset Write-Off

The Government will be extending the $20,000 instant asset write-off to small businesses to help improve cash flow and reduce compliance costs. Small businesses with an aggregated annual turnover of less than $10m will be able to immediately deduct eligible depreciating assets costing less than $20,000, which are first used or installed ready for use by 30 June 2025. The asset threshold applies on a per asset basis, so small businesses can instantly write off multiple assets. This measure is only available for smaller businesses. 

Small business new power bill relief  

Under the new power bill relief, from 1 July 2024, the Government will deliver rebates of $325 to around one million small businesses across the country. There is no detail on how to apply for such relief at this point.

If you have any questions regarding the budget and its impact, please contact Mark or the team at mark@mcaccg.com.au or 9923 2959.

This is general advice only and not to be interpreted as individual advice specific to your situation. Contact us to discuss the best solutions for your needs.”