Tax Updates: 26 February 2024

Welcome to this week’s review of tax issues where Richard comments on what’s been happening in the world of tax over the past week. If you have a question or would like a second opinion on any national or international tax issues, please contact Richard via email at [email protected].

Benefits Adjustment Bill enacted

This week saw the passing of the Social Security (Benefits Adjustment) and Income Tax (Minimum Family Tax Credit) Amendment Bill under urgency.

Historically, benefits such as jobseeker support, sole parent support and supported living payment, have been indexed to net average wage growth. However, that all changes from April 1st, 2024, when, in the future, we will see those benefits indexed to inflation instead.

Part two of the Bill also amends the ITA07 to increase the minimum family tax credit threshold in line with the main benefits. Effective from the 2024-25 tax year, the threshold will increase to $35,204 (previously $34,216).

This article was originally published through the ‘A Week In Review’ newsletter. If you would like to receive Richard’s tax updates every Monday morning, you can subscribe here.

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