25/01/2024
Tax cuts to help Australians with the cost of living
From 1 July 2024, the Albanese Labor Government will:
Reduce the 19 per cent tax rate to 16 per cent (for incomes between $18,200 and $45,000).
Reduce the 32.5 per cent tax rate to 30 per cent (for incomes between $45,000 and the new $135,000 threshold).
Increase the threshold at which the 37 per cent tax rate applies from $120,000 to $135,000.
Increase the threshold at which the 45 per cent tax rate applies from $180,000 to $190,000.
As a result of these changes, on July 1:
All 13.6 million taxpayers will receive a tax cut – and 2.9 million more taxpayers will receive a tax cut compared to Morrison’s plan.
11.5 million taxpayers (84 per cent of taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.
5.8 million women (90 per cent of women taxpayers) will now receive a bigger tax cut compared to Morrison’s plan.
A person on an average income of around $73,000 will get a tax cut of $1,504 – that’s $804 more than they were going to receive under Morrison’s plan.
A person earning $40,000 will get a tax cut of $654 – compared to nothing under Morrison’s plan.
A person earning $100,000 will get a tax cut of $2,179 – $804 more than they would receive under Morrison’s plan.
A person earning $200,000 will still get a tax cut, which will be $4,529.
In addition, the Government will increase the Medicare levy low-income thresholds for 2023-24.
