EOFY: Starting the 2024-2025 Financial Year Stronger

EOFY: Starting the 2024-2025 Financial Year Stronger

As we approach the end of the 2023-2024 financial year, it’s crucial for both businesses and individuals to stay informed about the latest changes and best practices to ensure a smooth transition into the new fiscal period. Here, we outline key strategies, updates to tax brackets, and tips for checking your individual pays.

Best Practices for Businesses

Review Financial Performance:

– Conduct a thorough review of your financial statements, including profit and loss, balance sheet, and cash flow statements.

– Identify areas of improvement and strategize for the coming year.

Update Accounting Systems:

– Ensure your accounting software is up to date with the latest tax rates and compliance requirements.

– Automate processes where possible to reduce manual errors and save time.

Employee Training:

– Invest in training programs to upskill your workforce.

– Keep your team informed about any changes in tax regulations or company policies.

Audit and Compliance:

– Schedule regular audits to ensure compliance with legal and financial regulations.

– Address any discrepancies or issues promptly.

Best Practices for Individuals

Review Employment Contracts:

– Ensure your employment contract is up to date and reflects any changes in your role or salary.

– Clarify any uncertainties with your HR department.

Understand Tax Changes:

– Stay informed about changes in tax brackets and how they impact your earnings.

– Adjust your financial planning accordingly.

Changes to Tax Brackets for 2024-2025

The 2024-2025 financial year has brought changes to tax brackets that will impact both businesses and individuals. The new tax rates are as follows:

– Income up to $18,200: 0%

– $18,201 – $45,000: 16% for amounts over $18,200

– $45,001 – $135,000: $4,288 plus 30% for amounts over $45,000

– $135,001 – $190,000: $31,288 plus 37% for amounts over $135,000

– $190,001 and above: $51,637 plus 45% for amounts over $190,000

These changes will come into effect from July 1, 2024, and it’s important to understand how they will impact your financial situation.

What This Means from July 1

For Businesses:

– The updated tax brackets mean a need to reassess payroll systems and ensure compliance with the new rates.

– It’s also an opportunity to evaluate overall financial strategies and make necessary adjustments.

For Individuals:

– Understanding these changes is essential for effective financial planning.

– Adjusting withholding amounts and planning for potential tax liabilities can help avoid surprises during tax season.

How to Check Your Individual Pays

To ensure your pays are correct, we recommend using online tools such as Pay Calculator. This tool allows you to input your earnings and deductions to see an accurate estimate of your take-home pay.

Steps to use Pay Calculator:

  1. Visit [Pay Calculator](https://www.paycalculator.com.au).
  2. Enter your annual salary or hourly wage.
  3. Input any additional information such as bonuses, deductions, and superannuation contributions.
  4. Review the calculated take-home pay to ensure accuracy.

By staying informed and proactive, both businesses and individuals can navigate the end of the financial year smoothly and start the new fiscal year stronger.

For more information regarding EOFY for your personal or business taxation, visit www.ato.gov.au