Starting 1 July 2024, Australians will experience several significant financial adjustments. Below we summarise five key changes coming into effect with the new financial year.

Stage 3 Tax Cuts  

Many Australians will take home more of their wages after 1 July with the Stage 3 Tax Cuts.  

From 1 July 2024, the tax cuts will: 

• reduce the 19 per cent tax rate to 16 per cent 

• reduce the 32.5 per cent tax rate to 30 per cent 

• increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000 

• increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000. 

Learn more about these tax cuts in our previous blog. 

Superannuation increase 

The super guarantee increases from 11% to 11.5% for the period of 1 July 2024 – 30 June 2025. 

Minimum wage increase 

A 3.75% increase to Australia’s minimum wage and award wages will take place from July 1 2024.  

This change will increase the weekly earnings of approximately 2.6 million full-time minimum wage workers by approximately $33, bringing their pay to $915.90 for a 38-hour week.  

Additionally, the national minimum hourly rate will be set at $24.10. 

Car expense deductions 

The 2024-25 income year has a car expense deduction rate of 88 cents (up from 85 cents) per kilometre.  

Up to 5,000 work-related kilometres can be claimed to cover car expenses per income year. It’s important to keep accurate records of relevant travel.  

Energy Bill Relief 

More than 10 million Australian households will receive quarterly rebates of $75 throughout 2024-25 directly on their energy bills, for a total of $300 for the year. 

In most cases, your electricity provider will automatically apply the bill relief to your electricity account and you will not be required to take any action.