Tax rate between $45,000 – $120,000 has dropped 2.5% from 32.5% to 30%
Tax rate between $120,000 – $180,000 has dropped 7.5% from 37% to 30%
Tax rate between $180,000 – $200,000 has dropped 15% from 45% to 30%
Tax thresholds have always been a part of the tax system in Australia, and the good news is, if you earn over $45,000, you’re going to receive tax rate relief from your 1st July 2024 tax return.
These tax cuts were part of the previous Governments personal income tax reform which has been implemented to benefit simplifying the tax thresholds in Australia and reducing the tax payable for the majority of Australia’s taxpayers.
As you can see, the tax-free threshold remains at $18,200 from 1st July 2024, along with the first band at 19% for those earning up to $45,000. Although we didn’t see any changes to the tax-free threshold, there may still be changes to come.
There has been talk for a long time about simplifying how tax thresholds work, and this change is a step in the right direction.
If you’re needing help to lodge your tax return or need advice from a tax agent, contact our friendly team today.
