Tax cuts to help Australians with the cost of living
The Government has announced tax cuts for all Australian taxpayers from 1 July 2024. The tax cuts provide cost-of-living relief, return bracket creep and boost labour supply.
Tax cuts for all Australian taxpayers
From 1 July this year, the Government 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
All 13.6 million Australian taxpayers will receive a tax cut from 2024–25 onwards.
The Government is also increasing the Medicare levy low-income thresholds for 2023–24, reducing, or eliminating altogether the amount of Medicare levy paid by more than a million Australians on lower incomes.