Tax cuts to help with the cost of living

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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.