Updated on 27 February 2024

Government announces legislation has passed for changes to Stage 3 income tax cuts that will apply from 1 July 2024

On 27 February 2024 legislation revising the Stage 3 tax cuts applicable from 1 July 2024 passed both houses of Parliament with no amendments.

The legislation (for the 2025 income year) will:

• reduce the 19% tax rate to 16%;
• reduce the 32.5% tax rate to 30% for incomes between $45,000 and a new $135,000 threshold;
• increase the threshold at which the 37% tax rate applies from $120,000 to $135,000; and
• increase the threshold at which the 45% tax rate applies from $180,000 to $190,000.

The proposed tax rates (excluding the Medicare levy) are sumarised in the below table.

The legislation also includes changes to the tax rates from 1 July 2024 for foreign residents and working holiday makers.

Separate draft legislation has also now been passed by the House of Representatives to increase the Medicare levy low-income thresholds for the 2024 income year.

For more information, visit the Parliament of Australia website.

At Trinity Advisory, we specialise in tax accounting, business advisory and coaching services for small businesses located in and around Cairns (116 Mulgrave Road, Parramatta Park QLD 4870) and the Sunshine Coast (2/8 Maroochydore Road, Maroochydore QLD 4558).

Should you need any taxation or accounting advice for your business, get in touch with Trinity Advisory today. Our team of expert Business Accountants, Advisors and Coaches are here to help!

Ref: NTAA March 2024 Newsletter and Treasury website.