As the 2025 financial year unfolds, here’s a breakdown of our most commonly asked tax questions and what you need to know.
Income Tax Changes
Tax rates have been adjusted for the 2024/25 financial year, impacting individuals across various income brackets. The new tax thresholds are:
- $0 – $18,200: No tax
- $18,201 – $45,000: 16% on income over $18,200
- $45,001 – $135,000: $4,288 plus 30% on income over $45,000
- $135,001 – $190,000: $31,288 plus 37% on income over $135,000
- $190,001 and above: $51,638 plus 45% on income over $190,000
Medicare Levy
The Medicare levy remains at 2% of taxable income, funding Australia’s public healthcare system.
Superannuation Guarantee Increase
Employers are now required to contribute 12% of an employee’s ordinary time earnings to their superannuation funds.
Property Investment Tax Implications
A political hot topic, but there are ongoing discussions around negative gearing and capital gains tax, property investors are urged to stay informed about potential changes that could affect their portfolios.