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Will 2024-25 be another year of volatility or a return to stability?
As you would be aware (at least we hope so after a $40m public education campaign), the personal income tax cuts came into effect on 1 July 2024. At the same time, the superannuation guarantee (SG) rate increased by 0.5% to 11.5%.
On 1 July 2024, the national minimum wage increased by 3.75% ($24.10 per hour, or $915.90 per week). The increase applies from the first full pay period starting on or after 1 July 2024. Traditionally, there is no correlation between an increase in minimum wages and inflation.
Inflation has reduced from its peak of 7.8% in December 2022 to 3.6% in the March quarter, but increased again in May to 4% dampening expectations of an interest rate reprieve.
Reserve Bank of Australia (RBA) Governor Michelle
Bullock has stated on several occasions that inflation,
not interest rates, are at the heart of cost of living
pressures. Interest rates are the RBA’s “blunt
instrument” to bring inflation under control. With
inflation easing more slowly than anticipated, the
RBA is not ruling anything out because the path of
interest rates is determined by the actions required
to bring inflation to target.
You can find more information relating to personal tax, super and cost of living, as well as the latest updates on the instant asset write off and income earned from the sharing economy in our newsletter here.
Kerrily and Louise – Directors
