Navigating 9 Major Tax, Property, and Financial Changes in 2024
As we embrace the second month of 2024, it's crucial to stay informed about the significant financial changes shaping the landscape this year.
From tax adjustments to property reforms, these changes can have a profound impact on your financial planning and overall well-being. Let's delve into nine major changes taking effect in 2024 and explore their implications for your financial journey.
1. Austudy and Youth Allowance Increases
Commencing from January 1, eligible Australians will witness a 6% rise in their Austudy, Disability Support Pension (under 21), and Youth Allowance payments. This increase aims to provide additional financial support to those in need, potentially alleviating cost-of-living pressures for many individuals and families.
2. Pensioner Work Bonus Expansion
Effective from January 1, eligible pensioners can now earn more income without affecting their pension entitlements. With the maximum Work Bonus income bank balance limit permanently increased to $11,800, pensioners have greater flexibility to supplement their income through work without facing financial penalties.
3. Medicare Safety Net Adjustments
As of January 1, changes to the Medicare Safety Net thresholds have come into effect. These adjustments, indexed to the Consumer Price Index, impact the amount Australians need to spend on out-of-hospital expenses before qualifying for reimbursement under various Medicare Safety Nets.
4. Victorian Land Tax Surcharge
Implemented from January 1, a temporary land tax surcharge in Victoria aims to increase tax payable on taxable landholdings. While family homes remain exempt, taxable landholdings valued within specific thresholds will incur surcharges, with higher-value properties facing additional taxation measures.
5. Electric Vehicle Rebate Changes
Starting January 1, New South Wales and South Australia have ceased offering a $3000 rebate for electric vehicle purchases. However, existing incentives in Queensland and Western Australia continue to provide financial support for those investing in electric vehicles, encouraging sustainable transportation choices.
6. Reserve Bank Schedule Adjustments
Beginning February 5, the Reserve Bank of Australia will adopt a new schedule for monetary policy meetings. This revised schedule aims to streamline decision-making processes, potentially resulting in less frequent home loan rate changes for homeowners with mortgages.
7. Stage Three Tax Cuts
Set to commence on July 1, stage three tax cuts will simplify tax brackets and rates, affecting the amount of tax paid by many Australians. Notably, income thresholds for various tax rates will be adjusted, aiming to create a more equitable tax system.
8. Superannuation Guarantee Rate Increase
Effective from July 1, the Superannuation Guarantee rate will rise from 11% to 11.5%, marking another step towards increasing regular superannuation contributions for Australian workers. This incremental increase aligns with the long-term goal of reaching a 12% contribution rate by July 2025.
9. Help To Buy Scheme Introduction
While the official start date is pending, the Help To Buy scheme is anticipated to launch in 2024 pending state legislation approval. This shared equity scheme aims to assist low and middle-income families in purchasing properties, providing a potential pathway to homeownership for thousands of Australians.
As these significant changes unfold throughout 2024, Strategem Financial Services remains committed to supporting clients in navigating the evolving financial landscape. Our expert advisors are equipped to provide tailored guidance and assistance, ensuring you make informed decisions to secure your financial future amidst these transformations.
For personalised advice on how these changes may impact your financial situation and strategies to maximise opportunities, contact Strategem Financial Services today. Let us help you navigate the complexities of 2024 and beyond, empowering you to achieve your financial goals with confidence.
We are here to help
If you need further advice on this topic, please do not hesitate to contact our office on (03) 5445 4777 and one of our Accountants & Financial Advisors will be available to support you.
