New Tax Rates: KPG Taxation Ensures The Best Outcomes For You
New Tax Rates: KPG Taxation Ensures The Best Outcomes For You
As we enter the 2024-25 financial year, Australian taxpayers face significant changes in income tax rates and thresholds. These changes, known as the stage 3 tax cuts, were passed by parliament on 27 February 2024 and took effect from 1 July 2024.
At KPG Taxation, we’re here to guide you through these changes and ensure you achieve the best possible outcomes.
Understanding The New Tax Rates
The Australian Taxation Office (ATO) has implemented several key changes to the income tax system:
- The bottom tax rate has decreased from 19% to 16%
- The 32.5% tax rate has been reduced to 30%
- The threshold for the 37% tax rate has increased from $120,000 to $135,000
- The threshold for the top 45% tax rate has risen from $180,000 to $190,000
These changes aim to provide tax relief to many Australians. Let’s break down the new tax rates and thresholds:
| Income Threshold | Tax Rate | Tax Payable |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,638 plus 45c for each $1 over $190,000 |
How KPG Taxation Can Help?
At KPG Taxation, we specialise in helping individuals and businesses navigate the complexities of the Australian tax system. Our expert team stays up-to-date with the latest changes in tax legislation to ensure our clients receive the best possible outcomes.
Income Tax Returns
If your income exceeds the tax-free threshold, you’re required by law to file an income tax return.
Our approach to handling your tax return includes:
- A thorough analysis of your financial situation
- Detailed review to identify tax-efficient opportunities
- Secure preparation and lodgement of your income tax return
We pride ourselves on our ability to maximise your tax refunds while ensuring full compliance with ATO regulations.
GST And BAS Statements
For business owners, understanding and managing Goods and Services Tax (GST) and Business Activity Statements (BAS) is crucial. KPG Taxation offers expert assistance in these areas:
- GST registration for eligible businesses
- Preparation and lodgement of BAS statements
- Ensuring compliance with ATO deadlines to avoid penalties
TFN And ABN Registration
Whether you’re starting a new business or need to update your existing registrations, KPG Taxation can help with Tax File Number (TFN) and Australian Business Number (ABN) processes. We’ll guide you through the requirements and ensure you’re fully compliant with all necessary registrations.
Impact of New Tax Rates on Your Finances
The new tax rates and thresholds can have a significant impact on your take-home pay and overall financial situation. Here are some key points to consider:
- Lower-income earners will benefit from the reduced bottom tax rate of 16%
- Middle-income earners may see more substantial savings due to the expanded 30% tax bracket
- Higher-income earners will benefit from the increased thresholds for the 37% and 45% tax rates
It’s important to review your tax strategy in light of these changes. You may want to consider:
- Adjusting your PAYG withholding to better align with the new tax rates
- Reviewing your salary packaging arrangements
- Reassessing your superannuation contribution strategy
KPG Taxation - Your Partner In Tax Planning
At KPG Taxation, we don’t just prepare tax returns – we offer comprehensive tax planning services to help you make the most of the new tax rates. Our experts can:
- Analyse your current financial situation
- Identify opportunities for tax savings under the new system
- Develop a tailored tax strategy to optimise your financial outcomes
- Provide ongoing support and advice as your circumstances change
We understand that tax matters can be complex and overwhelming. That’s why we strive to explain everything in clear, simple terms, ensuring you fully understand your tax position and the strategies we recommend.
Conclusion
The new tax rates for the 2024-25 financial year and beyond represent significant changes to the Australian tax system. While these changes aim to provide tax relief for many Australians, navigating the new system can be challenging.
KPG Taxation is here to help you understand and benefit from these changes. With our tax expert knowledge and personalised approach, we’ll ensure you achieve the best possible outcomes under the new tax regime.
Don’t leave your tax matters to chance. Contact KPG Taxation today to schedule a consultation and take control of your tax situation.
- Categories
- Tax Rates
Focus On Growing Your Business, Leave The Accounting On Us!
- Income Tax : File your taxes & get the best claims & returns.
- Accountancy : Hire expert accountants to manage your transactions.
- Bookkeeping : Let us handle your record books and expense reports.
- Business Advisory : From company set-up to payroll, we handle it all.