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Cost-of-living tax cuts
The Australian Government has legislated cost-of-living tax cuts for all 13.6 million Australian taxpayers.
From 1 July 2024, the tax cuts will:
- reduce the 19 per cent tax rate to 16 per cent
- reduce the 32.5 per cent tax rate to 30 per cent
- increase the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
- increase the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000
New personal tax rates and thresholds for 2024–25 onwards
| 2023-24 | 2024-25 | ||
|---|---|---|---|
| Thresholds ($) | Rates (%) | Thresholds ($) | Rates (%) |
| 0 – 18,200 | Tax free | 0 – 18,200 | Tax free |
| 18,201 – 45,000 | 19 | 18,201 – 45,000 | 16 |
| 45,001 – 120,000 | 32.5 | 45,001 – 135,000 | 30 |
| 120,001 – 180,000 | 37 | 135,001 – 190,000 | 37 |
| Over 180,000 | 45 | Over 190,000 | 45 |
Legislation
Legislation enacting these changes received Royal Assent on 5 March 2024.