Tax Legislation Changes
2024 has been busy in many ways. Our new coalition government has implemented several tax changes that we agree are positive, although they may not go far enough to please everyone. Tax thresholds have moved upwards from 31st July 2024.
Current brackets ($) | New brackets ($) | Rate |
0 - 14,000 | 0 - 15,600 | 10.5% |
14,001 - 48,000 | 15,601 - 53,500 | 17.5% |
48,001 - 70,000 | 53,501 - 78,100 | 30% |
70,001 - 180,000 | 78,101 - 180,000 | 33% |
180,001+ | No change | 39% |
From the 2024/25 income year (1st April 2024 for most trusts), the tax rate applying to trustee income has increased from 33% to 39%, aligning with the top personal tax rate. There are a few concessions to this rate change:
- Trusts with no more than $10,000 of net trustee income per year will continue to be taxed at a flat rate of 33%.
- Estates in the year of death and the following three income years will have a flat tax rate of 33%. After that, the 39% rate will apply.
- Disabled beneficiary trusts, energy consumer trusts, and legacy superannuation funds will all have a flat tax rate of 33%