Australia’s Employee Benefits News Summer 2024

Australia's Employee Benefits News Summer 2024Australia’s employee benefits news for summer 2024 is based on the country’s latest Fiscal Budget, which was released in May 2024. The budget focuses on easing cost-of-living pressures, including tax cuts and increases in superannuation and parental leave. Other budget hallmarks include building more homes for Australians, investing in a Future Made in Australia and the skills and universities needed to make it a reality, strengthening Medicare and the care economy, broadening opportunity, and advancing equality.

Key takeaways from the Budget include:

  • 6 million Australian taxpayers will benefit from a tax cut in the next financial year, averaging $36 a week. Tax savings calculation is available here.
  • Australian households will receive a $300 energy bill relief, plus relief for one million small businesses.
  • $1.1 billion allocated to pay 12% superannuation on Government-funded Paid Parental Leave from July 2025.
  • Social Security deeming rates for financial investments will remain at current levels until June 30, 2025. This will benefit approximately 876,000 income support recipients, including 450,000 pensioners.

Key superannuation rates and thresholds updates for the 2024/25 financial year

  • Minimum Superannuation Guarantee (SG) contribution rate increases to 5% of employee salary – paid quarterly
  • The employer-paid SG Maximum Contribution Base increases to $65,070/per quarter (or $260,280/per annum)
  • Annual SG contribution of 11.5% on Maximum Contribution Base of $260,280/per annum = $29,932/pa
  • The General Concessional Contributions Cap increases to $30,000/per annum
  • The General Non-Concessional Contribution cap increases to $120,000/per annum
  • Spouse contributions of $3,000 (or more) can attract up to a $540 tax offset, subject to the partner earning under $40,000 per year. Eligibility criteria apply. Contribution counts towards the Non-Concessional Contribution cap.
  • Non-Concessional Contribution of $1,000 to superannuation may attract a $500 government co-contribution. Eligibility criteria apply. Contribution counts towards the Non-Concessional Contribution cap.
  • The preservation age now reaches 60
  • The total limit of superannuation balance that can be transferred to pension remains unchanged at $1.9 million

Learn more

Parental leave

There are 2 payments available to families under the scheme in Australia:

  1. Paid Parental Leave (PPL)
  2. Dad and Partner Pay (Dad and Partner Pay does not apply for a child born or adopted from July 1, 2023.
  • Both payments are taxable and paid at the rate of the national minimum wage.
  • For children born or placed for adoption prior to 1 July 2023, parents may obtain up to 18 weeks’ pay: primary carer must take as a continuous block.
  • For children born or placed for adoption after July 1, 2023, parents can get up to 22 weeks’ pay (July 1, 2024): any parent can claim this with the birth mother/adoptive parent’s approval. 100 Parental leave paydays can be shared with a partner. They can use up to 10 days at a time with flexible timing.

 

This article about Australia’s employee benefits news for summer 2024 is provided by CA Financial, Asinta’s benefits consulting Partner in the country. If you need support with your employee benefits in Australia, please contact Asinta, and we will put you in touch with the local experts at CA Financial.