Upcoming Tax Cuts for Australians
As cost of living pressures continue to impact all Australians, the Government is stepping in with significant tax cuts for all taxpayers starting 1 July 2024. These changes were announced as part of the 2024-25 Federal Budget update and are designed to ease financial burdens and allow Australians to retain more of their income.
Here’s what you need to know.
Key changes to Income Tax Rates and Thresholds
The new tax structure will provide relief across all income brackets. The modified income tax rate thresholds and tax rates are as follows:
- Lowered tax rate from 19% to 16% for individuals with taxable income in the range of $18,201 to $45,000.
- Lowered tax rate from 32.5% to 30% for individuals with taxable income over $45,000.
- Increase the income level at which the 37% tax rate applies from $120,000 to $135,000.
- Increase the income level at which the 45% tax rate applies from $180,000 to $190,000.
How these changes will impact your finances
These adjustments ensure that all 13.6 million Australian taxpayers will see a reduced tax liability, allowing some to take home more money each payday and for others, the benefits will be shown when they file their tax returns for the 2024-25 financial year. Furthermore, these changes are expected to create opportunities for increased work hours by making additional earnings more rewarding after taxes.
These upcoming changes represent a substantial shift in the Australian tax landscape, promising relief for all taxpayers and incentivising additional work and earnings.
For personalised advice on how these changes might affect you, our team is here to assist you with navigating these tax updates and optimising your financial plan. Please contact Simmons Livingstone at 1800 618 800 or via email at admin@simmonslivingstone.com.au.
