Happy EOFY! What changes are coming in 2024?

As another financial year comes to a close, we look forward to the 2024 FY and summarise some important changes coming into affect from 1 July 2023.

The super guarantee rate is increasing

From 1 July 2023, the super guarantee (SG) rate will increase from 10.5% to 11% for all eligible employees. Superannuation rates have been increasing each year by 0.5%, since 1 July 2021. 

Employers must make minimum contributions of 11% for wages paid on or after 1 July 2023. This means, if an employee’s pay period spans across 2 financial years, the 11% will apply only if those wages are physically paid on or after 1 July 2023. If those wages are paid before 1 July 2023, the superannuation will remain at 10.5%.

Example: Billy is paid fortnightly and the pay run period ends on 7th July 2023.
His employer pays him for this pay period on 30th June. Super will be at 10.5% for the whole pay period.
If the employer decides to pay on 4th July 2023, super will be calculated at 11% for the whole pay period.

New fixed rate method for claiming work from home expenses

The fixed rate method for calculating working from home expenses has been revised, and is available for taxpayers to use from 1 July 2023.

The revised method sees a rate of 67c per hour able to be claimed, for certain expenses which are difficult to apportion (think internet & electricity). While the rate per hour has increased, the running costs it includes has changed and there are more record keeping requirements. Taxpayers must now keep a record for the entire income year of the actual number of hours worked from home.

However, a transitional approach can still be applied for the period from 1 July 2022 to 28 February 2023, where the ATO will accept a record for a representative 4-week period for the total number of hours worked.

Please contact us should you require further information regarding these changes.

Fringe Benefits exemption ceasing for plug-in hybrid electric vehicles

From 1 April 2025, a plug-in hybrid electric vehicle will not be considered a zero or low emissions vehicle under FBT law. However, the exemption will still apply if the vehicle was exempt before 1 April 2025 and there is a financially binding commitment to continue providing private use of the vehicle from that date.

Should you require more detailed information or specific advice, please contact us on 07 5532 4555.

Important Changes Affecting Super From 1 July 2022

There are some important changes to super rules coming into effect on 1st July 2022.

Super Guarantee (SG) rate increasing to 10.5%

From 1 July 2022, the SG rate will increase from 10% to 10.5%.

That means, from the very first pay run that falls in July 2022, you must pay your employees 10.5% SG on their Ordinary Time Earnings (OTE), instead of the current 10%.

This will continue to increase by 0.5% every year until it reaches 12% in 2025.

Employers should be aware that these increases will increase employment costs of employees who are paid by the hour and salaried employees whose salaries are exclusive of superannuation.

Those employees whose salaries are inclusive of superannuation may only require an adjustment to their base rate, provided their employment contract allows for this and it does not drop their base rate to below minimum wage rates.

$450 monthly super threshold abolished

Another major change coming is the abolition of the $450 monthly minimum wage threshold to qualify for SG contributions.

Currently, you are not required to pay SG to employees who earn less than $450 per month (gross).

From 1 July 2022, this rule will be scrapped and SG contributions will apply to all employees (including casual and part-time) regardless of how much they earn.

The only exception to this rule is for employees under the age of 18, who are required to work more than 30 hours per week to be eligible for SG – irrespective of what they earn.

If you have any questions about how any of the above new measures may affect you or your business, please don’t hesitate to contact our office on 07 5532 4555 to discuss.