Prime Minister announces Tax Cuts

The revised measures will involve cutting the lowest rate of income tax from 19 per cent to 16 per cent and the second lowest from 32.5 per cent to 30 per cent. The  Medicare levy threshold would be increased, and the top 45 per cent tax threshold would rise from $180,000 to $190,000.  

“This change means that taxpayers earning less than $45,000 will now receive a tax cut, and every working Australian will pay less tax on the first $45,000 that they earn,” Mr Albanese said. 

Therefore, following these announcements and assuming amending legislation is passed, the Australian resident personal income tax rates from 1 July 2024 will be:

From 1 July 2024
Resident individuals
Up to $18,200	Nil
$18,201 to $45,000	16% on part over $18,200
$45,001 to $135,000	$4,288 + 30% on part over $45,000
$135,001 to $190,000	$31,288 + 37% on part over $135,000
$190,001 and over	$51,638 + 45% on part over $190,000

 

Here to help

TaxAssist Accountants can help you navigate all of your tax obligations ensuring you pay what is due and no more. Speak to your local TaxAssist Accountant on 02 9174 5757 or make an enquiry here.

Last updated: 30th January 2024