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  • MAGNIFY Wealth

Four upcoming tax and super changes

The new financial year will see several fresh tax cut changes, and also changes to superannuation contribution rules and rates.  Let’s have a closer look at what some of these changes may mean for you.

 

1.       Personal Superannuation Contribution caps on the rise


·         Concessional Cap – these are set to increase to $30,000 from 1 July 2024

·         Non-Concessional Cap – are set to increase to $120,000 1 July 2024

·         Non-Concessional Cap bring forward rules – are set to change and be subject to each individuals total super balance from 30 June in previous year

 

 

2.       Stage 3 tax cuts changes


As per changes announced in January 2024 this will attempt to further address the cost-of-living crisis which will see a reduced tax cut for high income earners and increase cuts for low- and middle-income earners. This takes effect from 1 July 2024.



Current Financial Original Stage 3 New Rates from

Year Changes 1 July 2024

Taxable Income

Tax Rate

Taxable Income

Tax Rate

Taxable Income

Tax Rate

Up to $18,200

Nil

$0 - $18,200

Nil

Up to $18,200

Nil

$18,201 - $45,000

19%

$18,201 - $45,000

19%

$18,201 - $45,000

16%

$45,001 - $120,000

32.5%

$45,001 - $200,000

30%

$45,001 - $135,000

30%

$120,001 - $180,000

37%



$135,001 - $190,000

37%

> $180,000

45%

> $200,000

45%

> $190,000

45%

*Plus Medicare levy of 2%. These tax rates apply to Australian resident taxpayers. Different rates apply if you’re a working holidaymaker or you’re a non-resident for tax purposes

 

3.       Cary forward concessional contribution rules form of age


How does this work?


This will allow taxpayers to carry forward unused concessional cap amounts and apply them to increase their cap in later years.


Who is eligible?

·         You have a total super balance of less than $500,000 as at 30 June of previous

financial year

·         Have unused concessional cap amounts in any of 5 previous financial years


NOTE:   You will be required to have concessional contributions in excess of current

concessional cap

 

4.       End of an Era – Superannuation Preservation age hits 60 on 1 July 2024

 

Preservation Age

Date of Birth

Age of Member on 30 June 2023

Preservation Age

Financial year preservation age reached

Before 1 July 1960

63+

55

2014-15 or earlier

From 1 July 1960 to 30 June 1961

62

56

2016-2017

From 1 July 1961 – 30 June 1962

61

57

2018-19

From 1 July 1962 – 30 June 1963

60

58

2020-21

From 1 July 1963 to 30 June 1964

59

59

2022-23

On or after 1 July 1964

58 or less

60

2024-25 or later


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