Keeping a vehicle log book
When claiming work-related car expenses, many people miss maximising their claim due to poor record keeping. If you are audited by the Australian Tax Office (ATO), inadequate records could cost you dearly.
Read moreWhat the revised Stage 3 tax cuts mean for you
After much debate, legislation to scale back “Stage 3 tax cuts” is now law. This legislation passed parliament on 27 February 2024 and received assent on 5 March 2024. Consequently, you may now be wondering what the revised Stage 3 tax cuts mean for you.
Earlier this year, the Albanese government announced it would scale back the previously legislated Stage 3 tax cuts. The result is that the benefit received by those in the highest income brackets will be halved. Lower and middle- income earners will receive more of the benefit than originally legislated.
The Albanese government had previously stated it was fully committed to the passage of the Stage 3 tax cuts as previously legislated. This scale-back is therefore a major backflip.
New legislated Stage 3 tax cuts
The revised individual resident tax rates that will now apply, from 1 July 2024 onwards, will be:
| Income bracket: 2024-25 onwards ($) | tax rate: 2024-25 onwards (%) |
|---|---|
| 0 – 18,000 | 0 |
| 18,001 – 45,000 | 16 |
| 45,001 – 135,000 | 30 |
| 135,001 – 190,000 | 37 |
| 190,001 + | 45 |
The key changes from the current (2023-2024) income tax rates are:
- a reduction from the 19% tax rate to 16% for incomes between $18,200 and $45,000
- a reduction of the 32.5% tax rate to 30% for incomes between $45,000 and a higher $135,000 threshold
- an increase to the threshold at which the 37% tax rate applies from $120,000 to $135,000.
- an increase in the threshold at which the 45% tax rate applies from $180,000 to $190,000.
From 1 July 2024 onwards:
- a person earning over $200,000 p.a. will pay $4,529 less tax annually
- a person earning $100,000 p.a. will pay $2,179 less tax annually
- a person earning $50,000 p.a. will pay $929 less tax annually
Lower and middle- income Australian earners will no doubt welcome the increased benefits they will receive under the revised Stage 3 tax cuts. However, some of the highest-income earners will be disappointed that they will not receive the full benefits they may have anticipated from the Stage 3 tax cut as originally enacted.
Although the tax cuts are less than expected for some, this is still a great planning opportunity. And it is important to start planning now for year end.
To discuss how the revised Stage 3 tax cuts may impact you, and what you can consider regarding your taxable income for the next financial year, contact your Synectic adviser.
Review your financial situation for 2024
New Year’s resolutions often fade away, but the commitment to pause, reflect and review your financial situation each year is one that should endure. At Synectic, we encourage you to make this your top priority early in 2024. To get started, consider the following:
Read moreBusiness Insights and Inspirations: Xerocon 2023 Recap
Xerocon 2023 was a whirlwind of innovation, insights, and inspiration for our business services team. Here’s a recap of six valuable topics shared by a huge number of speakers across the two days in Sydney.
Read morePodcasts for reflection and growth
Having been on the road a fair bit over the past month, I’ve had the chance to delve into some of the latest ABC This Working Life podcasts. I thought I’d share my top seven podcasts, curated for reflection and growth, for those who might want to engage in some meaningful self-reflection and personal development over the summer months.
Read moreSuper balances above $3 million to be taxed at 30% – what does it mean?
The Albanese government have announced plans which will see the earnings on super balances above $3 million taxed at a concessional rate of 30 per cent, from 1 July 2025 onwards. The current rate on these earnings is 15 per cent.
Read moreFBT exemption for electric vehicles in Australia
Fringe Benefits Tax (FBT) exemption for electric vehicles in Australia has now been legislated. The relevant legislation, Treasury Laws Amendment (Electric Car Discount) Bill 2022, received Royal Assent on 12 December 2022. It upholds the Government’s pre-election commitment and broader decarbonisation initiatives.
Of all the employee ‘perks’, employer-provided cars (through novated car leases or private use of company vehicles) are one of the most popular fringe benefits in Australia. As a result, FBT exemption for electronic vehicles has been keenly anticipated.
What do employers and employees need to consider?
Read moreChanges to Superannuation for employers, employees and retirees from 1 July 2022
A number of superannuation changes came into effect from 1 July 2022, including:
- Changes to the work test and bring forward rules for those aged 67-75 years
- Carry forward unused concessional contributions
- Changes to contributing to super from the sale of your home (‘downsizer contributions’)
- Government contributions for low-to-middle income earners
- Pay an increased super rate to employees
- Pay super to employees regardless of their earnings
- Increased contribution allowance for first home buyers
Learn about these changes to superannuation and what you need to do below.
Read moreWhat really matters?
Xerocon2018 brought us several sessions that asked us to think about the way we think. They were an excellent, and timely, reminder for me of what’s important in my life.
With a young family, I’ve found myself at one of those times in life when it’s valuable to pause a moment. To check that you understand your priorities. Because they change over time. And sometimes a significant event, or a minor event, a comment, a chance meeting, or a speaker at a conference can trigger reflection.
Artifical Intelligence is here, but maybe it’s not so scary
One of the highlights of Xerocon2018 for me was a presentation from Professor Genevieve Bell: Preparing for artificial intelligence, or the fourth wave of industrialisation.
Accreditation
