Tax Cuts Explained
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Articles by Anthony Strevens
Everyone likes more money in their back pocket, and we’re about to get a few extra dollars to try and counteract the effect of inflation.
The coalition government recently announced in their budget that there would be a shift in the tax rate thresholds for individuals from 31 July 2024. Not a moment too soon.
For years we’ve been suffering the effect of inflation while the tax rate thresholds have stubbornly held firm. The result of this is effectively an increase in tax because while our wages and salaries have also increased through inflation, the tax rate thresholds have stayed in place, meaning we pay more tax! Finally some relief.
The changes in thresholds look like this:
There are some other more targeted tax breaks being introduced also. An increase to Working for Families Tax Credits and an increase to the eligibility cap for the Independent Earner Tax Credit among them.
The flow-on effects of these rate changes will influence other things such as PAYE thresholds, FBT calculations, employer superannuation contribution tax, and you may need to reconsider your nominated RWT rates advised to the bank.
How much you will save in tax of course depends on how much you earn. If you have any questions about how you may be affected, contact your Client Services Manager at GRA (or if you are not yet a client, book a meeting to see how we can help – the first meeting is free for new clients).
Anthony Strevens
Business Advisory Director
© Gilligan Rowe & Associates LP
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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
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