A Business Owner Guide to Navigating the FY 2024-25 Tax Changes
Just when you think you’ve gotten your business organised for the EOFY, along comes a curveball to keep things interesting! This time, it’s the new tax changes that have come into effect as of 1 July 2024 for FY 2024-25.
Before you go ahead and groan in frustration, don’t worry—we’ve got your back! Grab a cuppa, take a seat and let’s navigate through these changes together.
Cost-of-living tax cuts
First up, let’s talk about the shiny new cost-of-living tax cuts. Think of this as a little financial sunshine in your employees’ pockets. Essentially, the government has decided to be a bit generous (…yes, you read that right!) and provide some tax relief for taxpayers.
This means a net pay increase for your hardworking team of superstars, which also means they’re bound to be happier—and you know what they say, happy employees are productive employees.
Here’s the gist: with the new tax cuts, your employees will take home more of their hard-earned money. It’s like finding a $50 note in an old pair of jeans but better, because it happens every pay cycle (…and who doesn’t love a bit of extra cash?!).
Superannuation rate increase
In case you’ve been living under a rock (fair—we don’t blame you during this time of year!), the superannuation rate has jumped up to a sprightly 11.5%. While you might think, “Great, just what I needed—another expense”, let’s look at the silver lining here: super is essentially a future-proofing measure, which ensures that your employees aren’t eating instant noodles every night when they retire.
Yes, it might look like you’re shelling out a bit more now but think of it as an investment in your employees’ future. Plus, if we’re being honest here—if it weren’t for super, some of us might be working until we’re 100! So, it’s a good thing in the long run (…let’s also not forget it’s mandatory anyway!)
We understand that changes can be daunting, especially when it effects your business baby’s bottom line. But with these tax cuts and the increased super rate, your employees will be feeling all the love with a bit more money in their pockets and extra security for their future.
So, take a deep breath, keep your wits about you and remember, you’ve got this—after all, you’re a business owner and if you can handle that, you can handle anything! Of course, we’re here for you if you ever need us. If you’d like to chat, please enquire here.
