The Federal Government recently announced tax cuts for all Australian individual taxpayers, effective from 1 July 2024. This means that every taxpayer will be paying less tax beginning this July.
This change will be reflected as a small boost in our payslips each pay period.
Here are the relevant income thresholds which will apply:
| Current income thresholds (2023-2024) | Current tax rates (2024-2025) | New income thresholds (1 July 2024) | New tax rates (1 July 2024) |
| Earn up to $18,200 | Pay no tax | Earn up to $18,200 | Pay no tax |
| $18,201 – $45,000 | 19% (on each dollar earned) | $18,201 – $45,000 | 16% (on each dollar earned) |
| $45,001 – $120,000 | 32.5% (on each dollar earned) | $45,001 – $135,000 | 30% (on each dollar earned) |
| $120,000 – $180,000 | 37% (on each dollar earned) | $135,001 – $190,000 | 37% (on each dollar earned) |
| Greater than $180,000 | 45% (on each dollar earned) | Greater than $190,000 | 45% (on each dollar earned) |
This decision represents a change in previous legislation which was originally going to provide a bigger personal income tax cut for high income earners. The Labour Government states that these changes have been made in a bid to provide cost-of-living relief.
Further information can be found on the ATO website or Treasury’s tax cut calculator.
If you would like assistance in understanding how these tax cuts may impact you, please feel free to contact us.
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