Changes for SMEs from 1 July 2024

A raft of changes impacting businesses took effect on 1 July.

Changes to the minimum wage and superannuation guarantee took effect on 1 July. This article covers essential updates for the year ahead.

  1. Instant Asset Write-off: Eligible purchases up to $20,000 can be immediately deducted, covering items bought and installed between July 1, 2023, and June 30, 2024.

  2. Minimum wage: The National Minimum Wage rose by 3.75% to $24.10 per hour ($915.91 per week) for workers not under an award or agreement. Casual employees entitled to the NMW must now receive a minimum $30.13 per hour, which includes a 25% casual loading.  

The new tax rates and thresholds for resident taxpayers for the 2024-25 year will be:

From

To

Rate 

> Tax free threshold 

$45,000

16%

> $45,000

$135,000

30%

> $135,000

$190,000

37%

> $190,000


45%


  1. Energy rebate: Small businesses qualify for a $325 federal energy bill rebate, potentially doubled in some states.

  2. Superannuation Guarantee: The rate increases from 11% to 11.5%, with a further rise to 12% planned for July 1, 2025.

  3. General interest charge: The interest rate on late payments to the ATO increases marginally to 11.36% per annum from July 1, 2024.

  4. Penalty units: Commonwealth penalty units for tax obligations rise from $313 to $330 as of July 1.

  5. Company registration fees: Fees for company registration and related services see slight increases.

  6. Skills and training boost: The 20% deduction on SME training expenses ends before the financial year turnover.

  7. Environmentally sustainable procurement: New environmental criteria for federal contracts start for construction projects worth $7.5 million or more from July 1, expanding to IT, fit-out, and textile sectors by 2025.

  8. Apprenticeship Incentives: Financial support for hiring apprentices changes, with increased incentives for full-time positions starting July 1.

  9. Engineered stone ban: A ban on installing, manufacturing, or supplying certain engineered stone products begins July 1, with safety requirements for existing installations.

  10. WHS breaches: Higher penalties (as enacted in late October 2023) for breaches under the WHS Act 2011 will apply from 1 July.

Closing Loopholes changes

Enterprise agreements must include a delegate rights term from 1 July 2024. This term provides for the exercise of the rights of workplace delegates. This requirement is part of the Closing Loopholes Act amendments. These amendments also set out a requirement for all modern awards to include a delegate rights term from 1 July 2024.

Upcoming changes

View this checklist of upcoming legislative changes.