03/03/2024
STAGE 3 TAX CUTS.
On 27February 2024, Parliament passed the Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 (the Bill) containing the Government’s revisions to the Stage 3 personal tax cuts, which take effect from the 2024–25 financial year.
Below is the snapshot of stage 3 tax cut.
1 Reduce the 19% tax rate to 16%.
2 reduce the 32.5% tax rate to 30% for incomes between $ 45,000 and a new $ 135,000.
3 Increase the threshold at which the 37% tax rate applies from $ 120,000 to $ 135,000.
4 Increase the threshold at which 45% tax rate applies from $ 180,000 to $ 190,000.
5 There will be no change to the current tax-free threshold of $18,200 or the tax-free threshold of $416 on eligible income under the taxation of minors rules.
Taxpayers with taxable incomes up to $45,000 will benefit from a reduction of their marginal tax rate from 19 per cent to 16 per cent (maximum tax saving of $804).
For taxpayers with taxable incomes of $200,000 and above, the tax cut will be worth $4,529 instead of $9,075 — i.e. the Stage 3 benefit will be cut by half.
Please contact at Noble Tax Group Perth office if you need further information about stage 3 tax cuts, accounting and tax related matters.
Regards
Rabin Bartaula
Registered Tax Agent
Noble Tax Group
Suite 8, Level 1, 13 Collier Road
Morley, WA- 6062
