The revised stage 3 tax cuts have recently passed the senate (27th February 2024) and will be implemented from 1 July 2024.
From 1 July 2024, the revised stage 3 tax cuts will
- Reduce the 19 per cent tax rate to 16 per cent.
- Reduce the 32.5 per cent tax rate to 30 per cent.
- Increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000.
- Increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
The tax cuts have been put in place by government to help ease the cost-of-living crisis by reducing the amount of tax paid by individuals.
This will see Australian taxpayers with taxable income of $150,000 and less benefiting by receiving a larger tax cut than the original stage three plan and Australian taxpayers with taxable income above $150,000 having a lower tax cut than previously estimated, however, these individuals will still be benefiting when compared to the current tax rates.
Please contact us for advice specific to your circumstances.
