While uncertainty still lingers, one thing is clear—there are major shifts ahead that will affect personal tax, superannuation, wages, interest rates, and overall business confidence. These financial changes for business and individuals will have a significant impact on everyone.
From 1 July 2024, personal income tax cuts come into effect. This is part of a national public education campaign worth $40 million. Alongside these cuts, the superannuation guarantee (SG) rate has increased to 11.5%.
If you run a business, now is the time to:
The ATO has reminded employers that SG must be paid to temporary residents, backpackers, certain directors, and family members working in the business. Late or inaccurate payments can lead to penalties—so accuracy matters.
On 1 July 2024, the national minimum wage increased by 3.75%. It’s now:
While some worry about inflation, wage increases like this one don’t always lead to rising prices. In fact, private sector wage growth has slowed slightly to 4.1% as of March 2024. This signals more stable conditions in the labour market.
According to RBA Governor Michelle Bullock, inflation is the main driver of cost-of-living pressures—not interest rates.
Here’s where things stand:
Because of this volatility, hopes for lower interest rates have been dampened. The RBA remains cautious, and so should households and businesses.
Business confidence has slipped into negative territory, according to the latest NAB business survey. Conditions have softened, and forward orders have declined for eight consecutive months.
Treasury forecasts suggest 2% GDP growth in 2024–25. It’s not spectacular—but it’s steady.
Migration surged post-COVID, with the return of:
In the year ending June 2023, net overseas migration hit 518,000—a record.
The Government is now prioritising skilled migration, increasing employer-sponsored visa places. Meanwhile, the minimum salary for sponsored workers will rise to $73,150 from 1 July 2024.
The biggest risk for many businesses isn’t the economy—it’s not knowing their numbers.
Even profitable businesses can fail due to poor cash management. Strategic accounting practices—like cost control, debt planning, and budget reviews—are essential.
If you’re a small business, don’t be afraid to adjust prices to reflect higher operating costs. A small increase can go a long way in protecting your profit margins.
From tax changes to wage increases and super updates, 2024–25 is shaping up to be a year of important shifts.
Need help preparing your business for what’s ahead?
Whether you’re based on the Gold Coast or elsewhere in Australia, our team at Amarose Accounting is here to guide you. We can help you:
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