Stage 3 tax cuts
The recently enacted stage 3 tax cuts, set to take effect on 1 July 2024, have repealed and replaced the originally legislated stage 3 tax cuts.
The following amendments will take effect under the newly amended stage 3 tax cuts:
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.
Under the revised stage 3 tax cuts a person earning $40,000 will receive a tax cut of $654, a person earning $100,000 will receive a tax cut of $2,179, and a person earning $200,000 will receive a tax cut of $4,529.
New tax table, from July 1st 2024, with proposed and revised (on 25 January 2024) Stage 3 tax cuts