Will your cash flow be better off?
This applies to individuals and therefore it affects everyone in small business too:
In short:
Yes your cashflow will be better off but not by much.
The tax cut will only improve your cashflow marginally after July 2025
Your accountant will include this extra cashflow in your FY2025-26 forecasts
Some key points:
The tax cuts are now legislated
The tax cuts are start from next financial year (starting from 1 July 2024) so it will not change your rate for the current year
Essentially everyone earning $45K to $200K personally per year will get some benefit from these cuts
If you are earning over $200K per year nothing changes
If you are earning under $45K per year nothing changes
Here is a table of the changes:
Your accountant will be using the new rates in 2025 for your personal tax and taking into account your business earnings.
Book a chat with our business strategist to get a sales free and no obligation, consultation: https://bit.ly/45VxTrt 👈👈
References:
Thank you to treasury.gov.au