Law Changes

Trust Tax Rate

The Coalition Government has proceeded with the previous government’s legislation that increases the Trust Tax rate to 39% from 1 April 2024. Whilst this is unfortunate, it is not entirely unexpected once the personal tax rate went to 39% (for income over $180,000 on 1 October 2021).

What does this mean?

Not much will change immediately. Your 2024 year income is still taxed at last year’s rates. For next year’s Trust income most clients again potentially not much will change as there will still be opportunities to reorganise your affairs so that your top tax rate is 33%. This change is targeting the top 3-4% of income earners in the country. Again, there are planning opportunities to be had to minimise the impact of this tax rate change. We will discuss this with all affected clients during 2024, as the need arises.

Minimum Wage Increase

The Government have announced that the minimum wage is to increase from 1 April 2024 by 45 cents per hour.

 Family Tax and Best Start Credits (Effective 1 April 2024)

• Family tax credit rates increase for the eldest child from $7,121 to $7,524 and the subsequent child rate increases from $5,802 to $6,130.

• Best Start tax credit increases from $3,632 to $3,838.

• Minimum Family tax credit threshold increases from $34,216 to $35,204.