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Get Set for Significant Changes from January 2024

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Australia’s Nationwide Changes in 2024

A Comprehensive Overview of Reforms and Impacts

From 1 January 2024, several changes have been implemented across the nation, bringing a mix of positive and negative impacts for various segments of the population.

New ‘Global Minimum Tax’

Australian-based subsidiaries of major multinational corporations are now subject to a minimum tax rate of 15%, marking a significant development in the ongoing efforts of the OECD to modernise the global business taxation framework.

$60 Toll Cap in NSW

NSW motorists using toll roads will face a weekly toll cap of $400, with a $60 maximum spend on tolls. The two-year trial, a key election promise of the Labor government, began on 1 January 2024, with rebates issued through Service NSW from April 2024.

Second Home Tax Hike Victoria

Victorians owning more than one home will experience a 10-year increase in taxes, introduced as a “temporary” measure to aid the state in paying down its Covid debt. Land tax changes, announced in May 2023, will impact roughly 860,000 landowners, with increased taxes based on land values.

Welfare Payments Increase

More than 936,000 Australians receiving youth, student or carer support will now experience a 6% boost in their payments due to indexation. This increase will positively impact various categories, including Youth Allowance, Austudy, Disability Support Pension for those under 21, and Carer Allowance, providing additional financial support to over 600,000 carers.

Easier for Seniors to Work

Seniors and veterans looking to work will experience a permanent increase in the Work Bonus limit by $4,000, from $7,800 to $11,800. This change allows pensioners to earn more income before their pension payments are affected.

Free Kindy in Queensland

Parents in Queensland have access to free kindergarten, providing cost-of-living relief for an estimated 50,000 additional families. This initiative, announced under former QLD Premier in June’s state budget, is set to cost the state $645 million over four years.

Disposable Vape Crackdown

In what is deemed the “toughest laws” globally, the importation of all disposable vapes containing nicotine was prohibited from 1 January 2024. The initiative aims to address the smoking and vaping habits of over 3.5 million Australians aged 14 and older, according to research released by Cancer Victoria in June.

This move, part of the most significant smoking reforms in a decade, restricts non-prescription vaping products. Only pharmaceutical vapes prescribed by a doctor and dispensed through a pharmacy will be legally permitted, with stringent limitations on packaging, flavours and potential extensions of workplace smoking bans to vaping.

$200 Help to Beat ‘Bin Tax’ Brisbane

Brisbane households can access a $200 rebate for installing insinkerators and waste dehydrators as part of the council’s Towards Zero Waste strategy. The initiative aims to help residents avoid the state government’s increased “bin tax” waste levy.

New Home Gas Ban Victoria

From 1 January 2024, new homes built in Victoria are prohibited from connecting to natural gas. This measure, introduced by former Victorian Premier Daniel Andrews, aims to lower annual energy bills by up to $1,000 while reducing household emissions. Incentives, such as solar panel rebates and interest-free loans for household batteries, will be provided to encourage the adoption of all-electric solutions.

Plastic Bags Banned, Again

Heavyweight plastic bags greater than 35 microns in thickness are banned in the ACT. This marks the next phase of the territory’s crackdown on single-use plastics, following the banning of various other plastic items.

All measures commenced from 1 January 2024. Looking for a Xero Certified Bookkeeper in Brisbane? Are you drowning in paperwork? Cash flow problems keeping you awake at night? Learn how Notch Above Bookkeeping can solve all these problems here or call us on 1300 015 130.

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GST and using or receiving digital currency

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What to do when you receive and use digital currency as payment for goods and services

Digital currency as payment for goods and services

Receiving or using digital currency to pay for goods and services in your GST-registered enterprise is the same as using money, but it is different to trading digital currency.

Receiving digital currency

If you make a taxable supply and you receive digital currency as payment, the GST amount for that payment included in your business activity statement must be in Australian dollars.

Your tax invoice must meet the normal tax invoice requirements and include either:

  • the GST payable in Australian dollars
  • sufficient information to work out the GST payable in Australian dollars.

Examples of sufficient information includes the:

  • price expressed in Australian dollars
  • value expressed in Australian dollars, or
  • conversion rate used by the supplier, or a statement, to work out the GST payable if it is not in Australian dollars.

Using digital currency

If you use digital currency to make a purchase for your GST-registered enterprise and claim a GST credit, the GST amount of the credit in your business activity statement must be in Australian dollars.

To work out your GST credits, your tax invoice will include either:

  • the GST amount in Australian dollars
  • sufficient information to determine the GST amount in Australian dollars.

How to convert digital currency

To work out the value of your digital currency for your business activity statement, you must use the exchange rate on the conversion day that applies to you.

Exchange rate

If the exchange rate is in Australian dollars, you may choose to use the exchange rate:

  • from a digital currency exchange or website, or
  • agreed on between the supplier and the recipient.

If the exchange rate is in a foreign currency, you must convert the amount expressed in foreign currency to Australian dollars.

Conversion day

The conversion day is the date you use to convert your digital currency into Australian dollars.

If you account for GST on a non-cash basis, your conversion day is determined by whichever happens first of either the:

  • day you receive any of the payment
  • transaction date or invoice date.

If you account for GST on a cash basis, your conversion day can be the transaction date, invoice date or the day you receive any of the payment.

Looking for a Xero Certified Bookkeeper in Brisbane? Are you drowning in paperwork? Cash flow problems keeping you awake at night? Learn how Notch Above Bookkeeping can solve all these problems here or call us on 1300 015 130.