Revised stage 3 tax cuts become law
as at 1 july 2024
The revised Stage 3 tax cuts have become law and will come into effect as at 1 July 2024.
From 1 July 2024, the tax cuts will:
- Reduce the 19 per cent tax rate to 16 per cent (for incomes between $18,200 and $45,000).
- Reduce the 32.5 per cent tax rate to 30 per cent (for incomes between $45,000 and the new $135,000 threshold).
- Increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000.
- Increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000.
Below is a table that sets out a guide on what your tax cut will be based on income.
|
Taxable Income |
Tax cut under revised stage 3 |
|
$20,000 |
$0 |
|
$30,000 |
$354 |
|
$40,000 |
$654 |
|
$50,000 |
$929 |
|
$60,000 |
$1,179 |
|
$70,000 |
$1,429 |
|
$80,000 |
$1,679 |
|
$90,000 |
$1,929 |
|
$100,000 |
$2,179 |
|
$120,000 |
$2,679 |
|
$140,000 |
$3,729 |
|
$160,000 |
$3,729 |
|
$180,000 |
$3,729 |
|
$200,000 |
$4,529 |
|
$250,000 |
$4,529 |
In addition, the Government will increase the Medicare levy low-income thresholds for 2023-24.
Article posted 01/03/2024