From income tax changes to new guidelines for litigation around AI integration, we bring you a collation of key updates for May 2024.
Highlights of federal budget 2024-25: Tax and superannuation
Effective from 1 July 2024, significant changes to personal income tax rates will be implemented. The 19% tax rate will be reduced to 16%, and the 32.5% rate will be reduced to 30%. Additionally, the income thresholds for the higher tax rates will be increased, with the 37% rate applying above $135,000 (up from $120,000) and the 45% rate applying above $190,000 (up from $180,000).
To reflect inflation, the government has increased the Medicare levy and surcharge income thresholds, effective from 5 March 2024. This adjustment aims to alleviate the financial burden on taxpayers. In line with promoting greater economic inclusion for women, the Labor government has allocated $1.1 billion over five years to pay superannuation on government-funded Paid Parental Leave. This initiative will start from 1 July 2025, covering births and adoptions from that date onward.
KPMG insights suggest that these tax changes will reduce costs for employers with tax-equalised/-protected employees in medium-to-high income ranges. Global-mobility teams must prepare for updates to rate changes and income thresholds, effective from 1 July 2024 and 1 July 2023 respectively, including adjustments to cost estimates and gross-up calculations.
Generative AI leads in organisational deployments, Gartner survey finds
Generative AI (GenAI) is the most deployed AI solution, with 29% of organisations in the U.S., Germany, and the U.K. using it, according to a Gartner survey. Embedding GenAI in existing applications, like Microsoft’s Copilot or Adobe Firefly, is the top method of use (34%).
Despite GenAI’s popularity, the biggest challenge to AI adoption is demonstrating its value, as reported by 49% of respondents. AI-mature organisations effectively scale AI projects by focusing on scalable models, systematic engineering, upskilling, and trust management. These organisations provide a blueprint for success.
Only 48% of AI projects reach production, typically taking 8 months. Emphasising foundational capabilities can help organisations improve AI deployment efficiency.
Supreme Court issues new guidelines for litigation around AI integration
The Supreme Court of Victoria has released new guidelines to assist legal practitioners in using AI while conducting litigation. These guidelines aim to enhance the efficiency of court proceedings by incorporating modern technology.
A notable aspect of the guidelines is the recognition of artificial intelligence (AI) as a valuable tool in legal settings. AI, which includes systems that collate, synthesise, catalog, and generate information, is already supplementing many computer-based search engines and information management systems used by the legal profession and courts. The guidelines highlight the growing capacity and use of generative AI tools, acknowledging their role in streamlining information management and aiding efficient litigation. Follow the link to know more about these guidelines.
Australian Signals Directorate releases a new secure-by-design advisory
Amid rising cyber threats, the Australian Cyber Security Centre (ACSC) and international partners stress the need for secure and verifiable technologies. They urge organisations to prioritise secure-by-design and secure-by-default products, integrating security from the development stage to reduce risks and costs.
Customers are encouraged to demand these secure practices from manufacturers and gather sufficient information before procurement. This proactive approach can mitigate risks, lower operational costs, and enhance long-term corporate value. The ACSC and partners provide a roadmap for making informed, secure choices in digital product procurement.
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