Changes to Australian Tax Rates from 1 July 2024
In recent years, both the Coalition and Labor governments have introduced income tax cuts that have been implemented in phases since 2018. Among these changes are the stage 3 tax cuts, which take effect from July 2024. These changes became law after passing through both houses of parliament on February 27, 2024.
Starting from July 1, 2024, the following tax changes will take effect:
- The lowest tax rate will drop from 19% to 16%.
- The 32.5% tax rate will be reduced to 30%.
- The threshold for the 37% tax rate will rise from $120,000 to $135,000.
- The threshold for the highest 45% tax rate will increase from $180,000 to $190,000.
Australian income tax rates for 2024–25 onwards (residents)
| Income thresholds | Rate | Tax payable on this income |
|---|---|---|
| $0 – $18,200 | 0% | Nil |
| $18,201 – $45,000 | 16% | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | 30% | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | 37% | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | 45% | $51,638 plus 45c for each $1 over $190,000 |
Note: The above amounts do not include Medicare Levy or the impact of tax offsets such as the Low Income Tax Offset (LITO).
Tax cuts from 1 July 2024
The table below lists the approximate tax cut for various income levels from 1 July 2024 compared to previous years.
| Income | 2023-24 tax paid | 2024-25 tax paid | Tax cut |
|---|---|---|---|
| $20,000 | $342 | $288 | $54 |
| $30,000 | $2,242 | $1,888 | $354 |
| $40,000 | $4,142 | $3,488 | $654 |
| $50,000 | $6,717 | $5,788 | $929 |
| $60,000 | $9,967 | $8,788 | $1,179 |
| $70,000 | $13,217 | $11,788 | $1,429 |
| $80,000 | $16,467 | $14,788 | $1,679 |
| $90,000 | $19,717 | $17,788 | $1,929 |
| $100,000 | $22,967 | $20,788 | $2,179 |
| $110,000 | $26,217 | $23,788 | $2,429 |
| $120,000 | $29,467 | $26,788 | $2,679 |
| $130,000 | $33,167 | $29,788 | $3,379 |
| $140,000 | $36,867 | $33,138 | $3,729 |
| $150,000 | $40,567 | $36,838 | $3,729 |
| $160,000 | $44,267 | $40,538 | $3,729 |
| $170,000 | $47,967 | $44,238 | $3,729 |
| $180,000 | $51,667 | $47,938 | $3,729 |
| $190,000 | $56,167 | $51,638 | $4,529 |
| $200,000 | $60,667 | $56,138 | $4,529 |
Note: The above amounts do not include Medicare Levy or the impact of tax offsets such as the Low Income Tax Offset (LITO).
