Am I Better Off After The July 2024 Tax Cuts?

In a significant development for the Australian tax landscape, stage three tax cuts have been implemented from 1st July 2024. The changes promise to impact a broad spectrum of income earners, with tax reductions designed to stimulate economic growth and provide relief to taxpayers.

Previous 2023/2024 Financial Year Tax Rates
Taxable Income: $0 - $18,200
Tax Rate (%): Nil

Taxable Income: $18,201 - $45,000
Tax Rate (%): 19%

Taxable Income: $45,001 - $120,000
Tax Rate (%): 32.5%

Taxable Income: $120,001 - $180,000
Tax Rate (%): 37%

Taxable Income: Over $180,000
Tax Rate (%): 45%

Tax Rates For The 2024/2025 Financial Year
Taxable Income: $0 - $18,200
Tax Rate (%): Nil

Taxable Income: $18,201 - $45,000
Tax Rate (%): 16%

Taxable Income: $45,001 - $135,000
Tax Rate (%): 30%

Taxable Income: $135,001 - $190,000
Tax Rate (%): 37%

Taxable Income: Over $190,000
Tax Rate (%): 45%

Tax Cut Breakdown
To provide a clearer picture of the expected savings, let's examine the tax cuts for different income levels

• $80,000 Salary: Individuals earning $80,000 will experience a tax cut of $1,679.
• $100,000 Salary: Those with a $100,000 salary can anticipate a more substantial tax cut of $2,179.
• $120,000 Salary: Individuals in the $120,000 income bracket are set to receive a tax cut of $2,679.
• Higher Income Earners: The most significant impact will be felt by higher income earners, with those on a $200,000 salary expected to enjoy a substantial $4,529 tax cut.

While the tax cuts benefit all income levels, middle and high-income earners experience the most significant reductions in their tax liabilities. The adjustments are intended to improve overall financial flexibility for taxpayers and support economic growth.