Alex Kelly
End of financial year countdown
It’s a big time of year in the world of small business and tax, so we’ve put together a quick checklist and some key changes… from End of financial year countdown
Update
Federal Budget announcement 2025 – updates for individuals
The key considerations for individuals as a result of the 2025 Federal Budget announcement are as follows:
Income tax cuts
The Stage 3 tax cuts previously announced will remain unchanged from 1 July 2024.
The new thresholds and tax rates are summarised below.
| New threshold | New tax |
| < $18,201 | – |
| $18,201 to $45,000 | 16% of excess over $18,200 |
| $45,001 – $135,000 | $4,288 plus
30% of excess over $45,000 |
| $135,001 to $190,000 | $31,288 plus 37% of excess over $135,000 |
| >$190,000 | $51,638 plus 45% of excess over $190,000 |
Increasing the Medicare levy low-income thresholds
Low income individuals are exempt from paying the Medicare levy or pay a reduced rate.
The new thresholds are summarised below.
| Income threshold | 2022-23 | 2023-34 |
| Singles | 24,276 | 26,000 |
| Families | 40,939 | 43,846 |
| Single seniors and pensioners | 38,365 | 41,089 |
| Family threshold for seniors and pensioners | 53,406 | 57,198 |
| Increase in the threshold for each dependant student or child | 3,760 | 4,027 |
Capping HELP debt indexation
The HELP debt indexation formula is currently based on the consumer price index (CPI).
The new formula will be based on the lower of CPI or the wage price index (WPI).
The measure is proposed to be backdated and applied from 1 June 2023. This means that the previous rate applied on loan balances at 1 June 2023 of 7.1% will be reduced to 3.2% (i.e. the lower of CPI and WPI).
Superannuation on parental leave
From 1 July 2025, eligible parents will receive an additional parental leave payment to their superannuation fund. The payment will be equal to the minimum superannuation guarantee amount, which is expected to be 12% when the changes are implemented.
Energy bill relief
The Government announced it will provide a $300 rebate to all Australian households on 2024-25 bills. The credits will be applied automatically in quarterly instalments.
