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Technical update: CPI, AWOTE, Tax cuts, and more (Dolphin v2)
Pathfinder Dolphin v2: Released
Notes published
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Overview
The following assumptions have been updated in Pathfinder, and will be automatically applied when you solve a scenario.
CPI and AWOTE
These are based on the CPI and AWOTE figures for 2023, published by the Australian Bureau of Statistics over the last month, and the Treasury’s latest projections.
Parameter | Old (%) | New (%) |
CPI | 2023: 5.0 2024 to 2025: 3.0 2026 onwards: 2.5 | 2023: 4.052 2024 to 2025: 3.0 2026 onwards: 2.5 |
AWOTE | 2023 to 2025: 4.0 2026 onwards: 3.5 | 2023: 4.486 2024 to 2025: 3.5 2026 onwards: 3.0 |
The 2023 CPI and AWOTE have been updated in your custom database too, if you have one. Contact us if you would like to change your future forecasts, or if you want to set-up a custom database.
Tax cuts and Medicare levy
The Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024, which was passed today, changes tax thresholds and rates for 2024/25 onwards; and increases the Medicare levy low-income thresholds for 2023/24, in line with annual movements of CPI.
Tax cuts
Previous law (2024/25) | New law (2024/25) | ||
Lower income threshold ($) | Rate (%) | Lower income threshold ($) | Rate (%) |
0 | 0 | 0 | 0 |
18,200 | 19 | 18,200 | 16 |
45,000 | 30 | 45,000 | 30 |
200,000 | 45 | 135,000 | 37 |
190,000 | 45 | ||
Medicare levy
Previous law (2022/23) | New law (2023/24) | |||
Category | Threshold ($) | Phase-in limit ($) | Threshold ($) | Phase-in limit ($) |
Individuals | 24,276 | 30,345 | 26,000 | 32,500 |
Families | 40,939 | 47,956 | 43,846 | 54,807 |
Individuals eligible for SAPTO | 38,365 | 51,173 | 41,089 | 51,361 |
Families eligible for SAPTO | 53,406 | 66,757 | 57,198 | 71,497 |
Per dependant | 3,760 | 4,700 | 4,027 | 5,034 |
Various rates
Various rates and thresholds indexed by AWOTE, mainly superannuation-related (such as the Contributions caps, Transfer balance cap, Government contributions, Super guarantee, etc.) have also been updated. Future values are automatically indexed based on current rules and legislation.
Did you miss our previous update?
As of our previous update, you can customize Pathfinder’s interface to match your company branding.
New assumptions: Refresh your results!
For consistency, refresh your results by clicking the Start solve button for scenarios with existing results created on or before the release date. If you are unsure when your results were created, see How to check when your results were created. Note that some numbers in your results may change when these new assumptions are applied.