Just a few changes to tax in the budget this time …………..

The proposed tax cuts are being implemented from 1st July which comprise the following

• the tax free allowance remains unchanged at $18,200,
• the 19% rate on earnings up to $45,000 drops to 16%,
• and the 32.5% rate on earnings up to $135,000 (previously $120,000) drops to 30%

The rates above this remain unchanged at 37% and 45% however the top rate now kicks in at $190,000.

Note that medicare at 2% is in addition to the rates above.

For tax planning this means where possible bring expenses into this year and push income in to next. So get those donations and deductible super contributions done before June 30th.

ASSET WRITE OFF. It is great to see that businesses will still be able to write off assets costing up to $20k in full through to 30 June 2025.

PARENTAL LEAVE. If you are are an employer paying paid parental leave you need to pay super on that – but not for another year. It starts 1 July 2025.

All the major proposals are on this 20 second read from our friends at MLC.

Lindsay 0413 952180