The Australian Government has announced changes to the stage three tax cuts from 1 July 2024.
The changes include:
- 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.
Legislation will be introduced to enact these changes.
The Government estimated 13.6 million Australian taxpayers will receive a tax cut from 2024–25 onwards. The Government also released a Treasury advice to support its decisions.
The Government will also increase 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.
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