The revised stage 3 tax cuts have passed Parliament and will come into effect on 1 July 2024.
The redesign broadens the benefits by focusing on individuals with taxable income below $150,000. An additional 2.9 million Australian taxpayers are estimated to take home more in their pay packet from 1 July. You can estimate your tax cut with this calculator.
This is not how the restructure of the personal income tax system was supposed to work, but a sharp escalation in the cost of living has reshaped community sentiment. As the Prime Minister said, “We are focussed on the here and now” and by default, not on long-term structural change.
We recommend you check any salary sacrifice agreements to ensure that your current strategy will still produce the results you are after.
The redesigned Stage 3 tax rates for Australian resident taxpayers:
| Tax rate | 2023-24 | 2024-25 |
| 0% | $0 – $18,200 | $0 – $18,200 |
| 16% | $18,201 – $45,000 | |
| 19% | $18,201 – $45,000 | |
| 30% | $45,001 – $135,000 | |
| 32.5% | $45,001 – $120,000 | |
| 37% | $120,001 – $180,000 | $135,001 – $190,000 |
| 45% | >$180,000 | >$190,000 |
How can we help?
Please feel free to contact us if you have any questions or concerns about the impact of the proposed changes.
You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. If you need high-level support for your business, get in touch with our specialists on 07 3023 4800 or at mail@marshpartners.com.au.
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