Changes to personal tax rates announced by the federal government
The federal government has announced an overhaul of the previous Coalition government stage 3 tax cuts and introduced various changes in the personal tax rates that apply from 2024–25 income year and onwards. See Tax cuts to help with the cost of living
Changing the original course of action, as announced by the previous Coalition Government, the new tax changes aim to focus on the low and middle income earners to help with the cost-of-living pressures.
The following thresholds have been proposed to the personal tax rates:
The current tax thresholds and rates for 2023—24 are as follows.
Table source: Tax cuts to help with the cost of living
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Other matters
In addition to changing the tax rates and thresholds, the Government will also increase the low-income Medicare threshold and exempt more low-income earners from the 2% Medicare levy charge, it is yet to be seen if this increase will be usual increase by consumer price index (CPI) or more.
A 12-month long price enquiry will be conducted by the Australian Competition and Consumer Commission (ACCC) to scrutinise the supermarket pricing and the difference between farmgate and retail pricing shoppers end up paying.
Please note, the proposed changes are currently in the announcement stage and require parliamentary approval to become law.
Contact us
We can help you work out the exact tax cuts you may receive based on your current or expected annual income post 1 July 2024.
Please feel free to contact our office if you have any queries in relation to this matter.
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