The Australian economy is poised for a turnaround, with several significant changes set to take effect on July 1, 2024. These adjustments will impact families, workers, business owners, and retirees. Let’s delve into the details:
Tax Cuts
If you’re among the 13.6 million Australians who pay taxes, you’ll notice a boost in your paycheck. The stage 3 tax cuts, passed in February, will finally come into effect. Here’s a breakdown of the new tax brackets:
- Up to $18,200: No tax
- $18,201–$45,000: 16% tax rate
- $45,001–$135,000: 30% tax rate
- $135,001–$190,000: 37% tax rate
- Above $190,000: 45% tax rate
Remember, these changes apply to taxable income earned from July 1, 2024, onward.
Minimum Wage Increases
Over 20% of Australian workers will benefit from a minimum wage increase. The minimum and award wages will rise by 3.75% to $24.10 per hour. For those on the national minimum wage working a 38-hour week, this translates to $913.91—a welcome boost.
Social Services Payments
Certain government payments will also see slight increases due to July indexation. Welfare payments, including Family Tax Benefit A and B, Newborn Supplement, Multiple Birth Allowance, and Stillborn Baby Payment, will be adjusted to keep up with changes in indices like the Consumer Price Index. Rent Assistance payments will receive a 10% boost. Additionally, income and asset thresholds for pensioners will increase.
Superannuation Payments
Your employer will contribute more to your superannuation nest egg. Minimum super guarantee payments will rise by 50 basis points to 11.5% of your earnings.
As we approach July 1, 2024, these changes promise to shape Australia’s economic landscape. Whether it’s tax relief, wage hikes, or social services adjustments, Australians can anticipate a positive impact on their financial well-being. Stay informed and make the most of these developments.
