Tax Cuts 2024

Tax Cuts For Australian Tax Payers

In order to mitigate the current financial pressures Australian taxpayers face, the government have legislated permanent tax cuts from 1 July 2024.

Below the tax changes starting from 1 July 2024 are:

• The 19% tax bracket is reduced to 16%
• The 32.5% tax bracket is reduced to 30%
• The threshold in the 37% tax bracket increases from $120,000 to $135,000
• The threshold in the 45% tax bracket increases from $180,000 to $190,000

Resident Tax Rates 2023-24

Taxable income	Tax on this income
0-$18,200	Nil
$18,201-$45,000	19c for each $1 over $18,200
$45,001-$120,000	$5,092 plus 32.5c for each $1 over $45,000
$120,000-$180,000	$29,467 plus 37c for every $1 over $120,000
$180,001+	$51,667 plus 45c for each $1 over $180,000

Resident Tax Rates 2024-2025

Taxable income	Tax on this income
0-$18,200	Nil
$18,201-$45,000	16c for each $1 over $18,200
$45,001-$135,000	$4,288 plus 30c for each $1 over $45,000
$135,000-$190,000	$31,288 plus 37c for every $1 over $135,000
$190,001+	$51,638 plus 45c for each $1 over $190,000

Increase Medicare Levy low-income thresholds
Tax cuts for every tax payer

The Government has increased the Medicare levy low-income thresholds for singles, families, and seniors and pensioners from 1 July 2023. The increase to the thresholds ensures that low-income individuals continue to be exempt from paying the Medicare levy, or pay a reduced levy rate. From 1 July 2023, the Medicare levy low-income thresholds will be as follows:

Low Income Threshold	2023-24	2022-23
Singles	$26,000	$24,276
Families	$43,846	$40,939
Single seniors and pensioners	$41,089	$38,365
Family threshold for seniors and pensioners	$57,198	$53,406
Increase to family income threshold (for each dependent child)	$4,027	$3,760

Power bill relief
Easing cost-of-living pressures | Budget 2024–25

The Government has announced that, from 1 July 2024, it will provide “Power bill relief” via a $300 energy rebate to every Australian household, which will be automatically applied to their electricity bills. Similarly, certain eligible small businesses will receive a $325 energy rebate on their electricity bills throughout the 2024–25 year. This small business rebate will be available to approximately one million businesses on small customer electricity plans. Both of these credits will be applied in quarterly instalments.

Supporting students
Easing cost-of-living pressures | Budget 2024–25

In an effort to further reduce pressures, the Government have reformed HECS and HELP indexation of debts to the lower of either the Consumer Price Index or the Wage Price Index and have retroactively applied this to 2023*. The indexation rates are as follows: