Tax cuts to help with the cost of living

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The Government has announced it will deliver tax cuts to all Australian taxpayers, to provide cost-of-living relief.

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

Summary of proposed changes

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 will be introduced to enact these changes.

Tax cut calculator

The Government’s tax cuts will provide tax relief to all 13.6 million Australian taxpayers.

To estimate your tax cut, you can use the tax cut calculator.

Estimate your tax cuts

 

Resources

For more information on the Government’s tax cuts, including their impact on the cost of living, bracket creep and labour supply, see:

Draft legislation