The start of the new year brings a myriad of changes, influencing various aspects such as the tax rates for many Australians and the amount of superannuation they are entitled to receive. We have put together a list of the major changes that will apply in 2024.
- Austudy and Youth Allowance payments – Jan 1, 2024
Hundreds of thousands of Australians will start to receive a 6% increase in their Austudy, Disability Support Pension (under 21) and Youth Allowance payments after new payment rates came into effect on January 1.
Fortnightly payments will increase by between $36.20 and $45.60 for those on Austudy, between $22.40 and $45.60 for those receiving Youth Allowance and between $31.10 and $44.90 for Disability Support Pension recipients below the age of 21. The government also says that 600,000 carers will see their Carer Allowance increase by $8.70 a fortnight.
- Pensioner Work Bonus limits – Jan 1, 2024
Eligible pensioners will be able to earn more income without having their pension reduced following the government’s decision to permanently increase the maximum Work Bonus income bank balance limit to $11,800. The balance had originally been set to fall back to $7800 from January 1.
Pensioners can currently earn up to $300 in income each fortnight without it being counted under the pension income test. That means, for example, that when also taking the pension income free area into account, a single pensioner can earn $504 a fortnight while still receiving the maximum pension.
- Medicare Safety Net thresholds – Jan 1, 2024
The amount that Australians will need to spend on out of hospital expenses before they qualify for a reimbursement under the various Medicare Safety Nets has increased.
The Medicare Safety Nets thresholds are indexed in line with the Consumer Price Index, so as a result of inflation, the Original Medicare Safety Net threshold rose from $531.70 to $560.40 on January 1.
So too did the Extended Medicare Safety Net ($2414 to $2544.30) for non-concession cardholders and the Extended Medicare Safety Net ($770.30 to $811.80) for concession holders and families that are eligible for the Family Tax Benefit Part A.
- Victorian land tax surcharge – Jan 1, 2024
A temporary land tax surcharge has been introduced in Victoria which will increase the amount of tax payable on landholdings, though family homes are exempt.
The initiative, which is planned to run for the next decade, will see taxable landholdings valued between $50,000 and $100,000 attract a $500 surcharge and those between $100,000 and $300,000 attract a $975 surcharge. For landholdings valued over $300,000 a $975 flat surcharge and a 0.10% land tax increase will apply.
- Electric vehicle rebates – Jan 1, 2024
Would-be electric vehicle (EV) buyers in both New South Wales and South Australia will no longer be entitled to a $3000 rebate after both states ended their respective incentives.
EV purchases made up to the December 31 deadline (including putting down a deposit) will still be eligible for the $3000 rebate, though in New South Wales the vehicle will need to be registered and the rebate application made by June 30. Dedicated electric vehicle rebate schemes are still operating in Queensland ($3000 to $6000 available) and Western Australia ($3500 available).
- Reserve Bank schedule – Feb 5, 2024
Following on from the government’s review of the Reserve Bank of Australia last year, there will be a new look schedule for Reserve Bank Board monetary policy meetings starting at the first meeting of 2024 on February 5.
Rather than 11 meetings a year held on the first Tuesday of every month (aside from January), the Board will now meet eight times each year and the meetings themselves will be spread out over a Monday afternoon and Tuesday morning before a decision is announced on Tuesday afternoon.
For homeowners with a mortgage one expected benefit of the new schedule is less frequent home loan rate changes, though there’s nothing stopping lenders lifting or dropping their rates between meetings.
- Stage three tax cuts – July 1, 2024
Barring any last-minute surprises, the much-discussed stage three tax cuts will finally come into effect on July 1 which will have an impact on the amount of tax many Australians will pay going forward.
There are currently five tax brackets (including the tax-free threshold), but this will be cut to four from July 1 when Australians earning between $45,001 and $200,000 will be merged into a single bracket with a 30% tax rate rather than the existing 32.5% or 37% tax rates that apply for incomes in that range.
Additionally, the income threshold for the highest 45% tax rate will be lifted from $180,001 to $200,001.
New income tax rates
| Income | Tax rate |
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 19 cents for each $1 over $18,200 |
| $45,001 – $120,000 | $5092 plus 32.5 cents for each $1 over $45,000 |
| $120,001-$180,000 | $29,467 plus 37 cents for each $1 over $120,000 |
| $200,001 and up | $51,667 plus 45 cents for each $1 over $180,000 |
- Superannuation guarantee rate – July 1, 2024
Many Australian workers will receive another increase in the regular superannuation contributions they receive from their employers when the Superannuation Guarantee rate is increased from 11% to 11.5% from the start of the new financial year (July 1).
This will be the latest annual uptick in the rate which has risen in 0.5% increments from 9.50% in 2021 and is scheduled to reach 12% in July 2025.
- From 1 July 2022, the work test no longer applies to retirees aged between 67 and 75 for specific contributions. Both non-concessional and salary sacrifice contributions can be contributed to super assuming their total super cap is below $1.9 million for non-concessional contributions without passing the work test.
- The work test, a requirement to work 40 hours in any 30 day period within the financial year, still applies to other contribution types including personal concessional contributions.
- Individuals up to the age of 75 may now be able to use the bring forward rule which previously cut off at 67 years. Prior to making any non-concessional contributions, the member must review their total super balance cap and any non-concessional contributions made in the last 2 years.
- The bring forward non concessional rule effectively allows an individual to contribute up to 3 years of non-concessional contributions in the one year – potentially $330,000! We would recommend reaching out to our office to ensure this applies to you prior to making any contributions.
- Help To Buy scheme – TBA
While there’s no official start date yet, the federal government has indicated that its new Help To Buy scheme will be up and running this year once the states pass the legislation needed to participate.
What is Help To Buy? It’s a shared equity scheme in which, in order to help homebuyers enter the market, the government will provide an equity contribution of up to 30% of the value of an existing home or 40% of a new home.
The government says that the scheme will assist 40,000 low and middle income families to purchase a property, though applicants will need a minimum 2% deposit and it’s anticipated that the contribution will either need to be paid back over time or when the home is sold.
How can we help?
If you have any questions or would like further information or you are seeking property tax advice, please feel free to contact our office via email –info@investplusaccounting.com.au or phone 02 9299 7000 to either speak with someone or arrange a time for a meeting so we can discuss your requirements in more detail.
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