New year, new rules: A guide to FY24

As the new financial year approaches, it's essential to take action and stay informed about the upcoming tax and legislation changes that will shape your financial landscape. By understanding these changes, you can seize opportunities, enhance your financial security, optimise your entitlements, and remain compliant with the law. With so many changes on the horizon, it can feel overwhelming to navigate through the sea of information. However, we've got you covered with a comprehensive list of all the major changes you need to know. Let’s dive in!

Super charged Superannuation 

One notable change that will have a positive impact on your retirement savings is the increase in the Superannuation Guarantee payment rate. From this financial year, your employer's contribution to your superannuation fund will rise from 10.5% to 11%. This boost will allow your superannuation to compound and grow, providing you with a more substantial income when you retire. What's more, this rate will continue to increase by 0.5% each year until it reaches a rate of 12% by July 1, 2025.

The Child Care Subsidy is set to increase

Families will also experience significant relief as the cost of child care is set to decrease. Starting from July 10, 2023, families earning less than $530,000 will gain access to an increased child care subsidy. The maximum subsidy will rise from 85% to 90%, alleviating the financial burden for many households.

Support to buy your own home

Furthermore, there are exciting developments in the housing market. The Home Guarantee Scheme, which encompasses the First Home Owner Guarantee and Regional First Home Owner Guarantee schemes, will now extend eligibility beyond married or de facto couples. Siblings, family members, and even friends will now have the opportunity to participate in these schemes, enabling millions more Australians to achieve their dreams of homeownership. Permanent residents and individuals who haven't owned a home in the last 10 years will also become eligible. For a comprehensive analysis of these changes, be sure to check out our article titled 'From Roommates to Homeowners.'

Flexible Paid Parental Leave

New parents will also benefit from increased flexibility in accessing paid parental leave. Under the revised regulations, eligible couples can choose how to divide up to 20 weeks of paid leave, whereas single parents can access the entire 20-week period. This change provides greater support and flexibility for growing families, with payments made at the minimum wage.

Workers across various industries will be pleased to hear that the minimum wage is set to increase. Following a decision by the Fair Work Commission, the minimum wage will rise to $882.80 per week or $23.23 per hour. This 5.75% pay increase will help improve the livelihoods of workers on minimum wage and those covered by awards.

Medicare Levy Surcharge Income Threshold is increasing

If you don’t have health insurance then you may have to pay the Medicare Levy Surcharge. The income threshold for this surcharge is rising from $90,000 to $93,000 for singles and from $180,000 to $186,000 for families and couples. Understanding these changes will ensure you make informed decisions about your healthcare coverage.

LMITO is done and dusted but Stage 3 Tax cuts are on their way

While some changes bring positive news, others might impact your tax returns. The Low and Middle Income Tax Offset, commonly known as the 'Lamington,' has been abolished this financial year and will remain unavailable next year. However, it's important to note that Stage 3 Tax cuts will take effect in the following financial year, benefiting individuals earning above $45,000 per year, particularly higher income earners.

The Commonwealth Rent Assistance payment rate is increasing

Lastly, there's good news for those receiving Commonwealth Rent Assistance. Starting from September, individuals receiving the maximum assistance will enjoy a 15% increase in the fortnightly payment, rising from $157.20 to $180.80. This adjustment will provide additional support for those grappling with the rising costs of housing.

To make the most of these changes and tailor them to your personal circumstances, seeking professional advice is invaluable. Connect with a trusted financial advisor, accountant or consult the relevant government resources to understand how these changes impact your financial situation specifically. As the new financial year approaches, take charge of your financial future by staying informed and proactive. With the right knowledge and guidance, you can navigate the changes ahead, maximise your benefits, and secure a brighter financial outlook. Remember, knowledge is power when it comes to your personal finances.