The Australian tax landscape saw several important updates between 1 July and 30 September 2024, impacting individuals and small to medium businesses. These changes, especially in superannuation and business incentives, are essential to understand. Here’s a clear breakdown of the most impactful updates.
Superannuation Guarantee Increase
As of 1 July 2024, the Superannuation Guarantee (SG) rate increased from 11% to 11.5%. This change is part of a gradual rise that aims to reach 12% by the 2025 financial year, aligning with Australia’s goal of enhancing retirement savings for workers.
Impact on Small to Medium Businesses
For small to medium businesses, particularly those in Brisbane, this 0.5% increase in super contributions may affect payroll expenses, especially for companies with larger workforces. To navigate these additional costs, business owners should consult with a tax adviser or accountant. This guidance can help them develop financial strategies that incorporate the updated SG requirements while maintaining compliance.
Benefits for Employees
Employees also benefit from this increase, as it supports better retirement savings. Regularly reviewing your super contributions and checking with your employer helps ensure compliance. If there is any uncertainty about whether your super is being paid correctly, consulting a tax adviser can offer valuable clarification.
Small Business Energy Incentive
The Small Business Energy Incentive encourages energy-efficient practices by providing tax deductions for electrification and energy upgrades. This incentive is especially beneficial for Brisbane-based businesses that invest in sustainable energy solutions.
Eligible Investments for the Incentive
Small and medium businesses can claim up to $20,000 in tax deductions for energy-saving upgrades, such as solar panels, electric heat pumps, and energy-efficient machinery, during the 2024 financial year. Not only does this incentive provide immediate tax relief, but it also offers long-term operational savings.
To maximize this benefit, Brisbane accountants recommend strategic financial planning and consulting a tax adviser to ensure all eligible upgrades are correctly claimed. Investing in energy-efficient equipment can also help businesses reduce ongoing energy bills, making this a win-win for sustainability and financial health.
Conclusion
For individuals and small to medium businesses in Brisbane, understanding these tax changes is essential for maintaining compliance and financial stability. Whether adjusting to the increased Superannuation Guarantee or leveraging the Small Business Energy Incentive, working with a qualified Brisbane tax adviser can help you make informed decisions and optimise your financial planning.
If you’d like expert advice on these tax updates, contact us at 07 3194 3070 or hello@sheppardadvisory.com.au. We’re here to guide you through the latest regulations and enhance your financial strategy for the future.
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