Key Changes- 2024

Key Changes for Individuals


Cents per kilometre rate change

From 1 July 2023, the cents per kilometre rate is 85c for work-related car expenses.

A new guideline is available to help clients to work out the cost of electricity when charging an electric vehicle (EV) from home. Clients can use the EV home charging rate of 4.2c per kilometre.


Medicare levy surcharge thresholds

From 1 July 2023 the Medicare Levy Surcharge thresholds have increased.

Medicare levy surcharge thresholds
Threshold          Base tier          Tier 1          Tier 2         Tier 3
Single threshold

  $93,000 or less

          $93,001 – $108,000

         $108,001 – $144,000

        $144,001 or more

Family threshold

  $186,000 or less

          $186,001 – $216,000

         $216,001 – $288,000

        $288,001 or more

Medicare levy surcharge





The family income threshold is increased by $1,500 for each MLS dependent child after the first child.


Trust income schedule

From the 2024 income year, if you received one or more distributions from trusts, you must complete Trust income schedule 2024 and attach it to your tax return. The trust income schedule details each distribution that you receive from trusts.

Certain amount you report in your trust income schedule are amounts you report in your supplementary tax return at questions:

  • 13 Income
  • 18 Capital gains
  • 19 Foreign entities
  • 20 Foreign source income and foreign assets or property.

For information to help your clients complete the trust income schedule and who must complete the schedule, see Trust income schedule and instructions 2024.


Effective life determination for depreciating assets

The ATO is updating how they publish effective life determinations.

Use the effective life of a depreciating asset to work out its decline in value. You can either make your own estimate of its effective life or use the Commissioner’s effective life determinations. For assistance with both, see Effective life of an asset.


Self-education deductions

From the 2024 income year, you can claim all eligible deductions for work-related self-education expenses at question D4 Work-related self-education expenses.

In prior income years you would claim formal education courses provided by professional associations, seminars, education workshops or conferences at question D5 Other work-related expenses.

This doesn’t change the types of expenses or deduction you can claim, only the question where you claim them.

This change is limited to expenses you claim at question D4 and D5.

You continue to claim motor vehicle and travel expenses at questions D1 and D2.


Individuals in business

If you complete income questions 1415 or 16 or have a net loss from business activity carried on in partnership at question 13 in the supplementary tax return, you should be aware of the following measures.

Small business energy incentive

This measure is not yet law. You can’t claim the small business energy incentive until the law is enacted.

The Treasury Laws Amendment (Support for Small Business Charities, and other Measures) Bill 2023External Link provides businesses with an aggregated annual turnover of less than $50 million with access to a bonus deduction equal to 20% of the cost of eligible assets and improvements to existing assets that support more efficient energy use.

This is a temporary measure to support small businesses to improve their energy efficiency and save on energy bills. The bonus deduction applies to the cost of eligible assets and improvements up to a maximum amount of $100,000, with the maximum bonus deduction being $20,000.

For more information, see Small business energy incentive.

Small business – $20,000 Instant asset write-off

This measure is not yet law. Until the law takes effect, the $1,000 instant asset write-off threshold and the 5-year ‘lock out’ rule will apply.

The Treasury Laws Amendment (Support for Small Business, Charities, and other Measures) Bill 2023External Link provides a temporary increase to the instant asset write-off threshold to support small business entities (with an aggregated annual turnover of less than $10 million). To check if you’re a small business entity, see Calculate your aggregated turnover.

If the law passes eligible small businesses entities will become able to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that were first used or installed ready for use for a taxable purpose between 1 July 2023 and 30 June 2024.

The $20,000 threshold will apply on a per asset basis, so small businesses will be able to instantly write off multiple assets. Small businesses will also be able to immediately deduct an eligible amount included in the second element of a depreciating asset’s cost.

The 5-year ‘lock out’ rule would be suspended for 2023–24 tax returns. This rule prevented small businesses from re-entering the simplified depreciation regime if they opted out.

If you lodge your return before law for the measure has taken effect they must apply the $1,000 instant asset write-off threshold that applies. If a higher threshold is legislated you would then be able to amend your tax return and apply the higher threshold once it takes effect.

For more information, see Small business support – $20,000 instant asset write-off.

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