The Australian government has taken significant steps to provide cost-of-living relief through tax cuts for all taxpayers. Starting from July 1, 2024, these changes aim to ease the financial burden and enhance economic well-being. Let’s delve into the details:

1. Reduced Tax Rates:
   • The 19% tax rate will be reduced to 16%.
   • The 32.5% tax rate will now stand at 30%.
2. Threshold Adjustments:
   • The income thresholds for each tax bracket have been modified:
     • The threshold above which the 37% tax rate applies will increase from $120,000 to $135,000.
     • The threshold above which the 45% tax rate applies will rise from $180,000 to $190,000.

Wondering how these changes impact your take-home pay? Use the Tax Cut Calculator to estimate your tax savings.

All information was sourced from treasury.gov.au