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As we usher in the new year, 2024 brings significant tax and financial changes that will impact individuals and businesses.

We have broken down an overview of these changes, ensuring you are well-informed.

1. Electric Vehicle Rebates – Effective January 1

Changes in New South Wales and South Australia

As of January 1, prospective electric vehicle (EV) buyers in New South Wales and South Australia will no longer be entitled to a $3000 rebate as both states have concluded their respective incentives. However, EV purchases made up to the December 31 deadline (including deposits) will still be eligible for the rebate. New South Wales requires vehicle registration and rebate applications to be completed by June 30.

Dedicated electric vehicle rebate schemes continue to operate in Queensland (with $3000 to $6000 available) and Western Australia (offering $3500).

2. Reserve Bank Schedule – Effective February 5

Revamped Monetary Policy Meetings

Starting from the first meeting on February 5, the Reserve Bank of Australia will implement a new schedule for monetary policy meetings. Instead of 11 meetings annually on the first Tuesday of each month (except January), the Board will convene eight times a year. Meetings will be on Monday and Tuesday mornings, with decisions announced on Tuesday afternoon.

For homeowners with mortgages, the new schedule is anticipated to lead to less frequent home loan rate changes. However, lenders still retain the flexibility to adjust rates between meetings.

3. Stage Three Tax Cuts – Effective July 1

Restructured Tax Brackets

Commencing on July 1, the long-discussed stage three tax cuts will take effect, impacting the tax liabilities of many Australians. The current five-tax bracket system will be streamlined to four, consolidating incomes between $45,001 and $200,000 into a single bracket with a 30% tax rate. Additionally, the income threshold for the highest 45% tax rate will increase from $180,000 to $200,000.

2024-25 Income Tax Rates:

$0 – $18,200No tax
$18,201 – $45,00019%
$45,001 – $200,00030%
$200,001 and above45%

4. Superannuation Guarantee Rate – Effective July 1

Increased Employer Contributions

Starting July 1, Australian workers will experience another uptick in regular superannuation contributions from employers, with the Superannuation Guarantee rate rising from 11% to 11.5%. This marks the latest in annual increases, with the rate set to reach 12% by July 2025.

5. Increase to NSW Stamp Duty – Effective February 1

Impact on Property Transactions

The acquisition threshold for landholder duty for a private unit trust drops from 50% to 20%, unless the trust is registered as a ‘wholesale unit trust scheme’. This means a larger number of companies and unit trusts will become landholders for NSW landholder duty purposes. Duty on trust deeds will increase from $500 to $750, while nominal duty on transfers will increase from $10 to $20.

The change underscores the importance of considering these adjustments when engaging in property-related financial decisions.

6. Stamp Duty Rate for Business Re-structures – Effective February 1

Business Restructuring Considerations

Concession for duty on corporate reconstructions and corporate consolidations reduced from a 100% exemption to a 90% concession. Business professionals need to be mindful of these adjustments when planning re-structures, ensuring compliance and optimizing financial outcomes. Transactions occurring before or on 1 February 2024 will still be eligible for the full exemption if the transaction arose from an agreement or arrangement entered into before 19 September 2023 if transitional provisions are satisfied.

Are You Prepared For The Year Ahead?

As we navigate the complexities of the financial landscape in 2024, AFP Accounting and Business Advisory remain committed to keeping our audience informed and prepared.

Stay ahead of these changes, consult our expert team, and ensure that your financial strategies align with the evolving economic landscape.

Contact one of our specialists at enquiries@afpaccounting.com.au or call (02) 7804 1849.

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