Crystal Wealth Newsroom
Stage 3 tax cuts effective from 1 July 2024
Every Australian taxpayer will have more money in their take-home pay when stage 3 tax cuts come into effect on 1 July 2024.
The stage 3 tax cuts formed part of the Liberal Government’s seven-year personal income tax plan, announced in the 2018/19 Federal Budget, and revised further by the Labor Government.
“Everyone is going to be better off, but who benefits most has changed,” says John McIlroy, Executive Director at Crystal Wealth Partners.
“If you’re earning $135,000 or below, you’re going to be better off under the new stage 3 cuts. For those earning more than $135,000, you’ll still be paying less tax than you are now, but more than you would have under the Liberal policy.”
While tax rates for those earning up to $135,000 per year have been cut, the threshold for higher earners has also been increased – with the 45% tax rate now effective on earnings above $190,000 per year, rather than $180,000.
The Medicare levy of 2% will remain the same.
| Current tax rates | From 1 July 2024 | ||
| Annual pre-tax income | Tax rate | Annual pre-tax income | Tax rate |
| $0 –$18,200 | 0% | $0 –$18,200 | 0% |
| $18,201 – $45,000 | 19% | $18,201 – $45,000 | 16% |
| $45,001 – $120,000 | 32.5% | $45,001 – $135,000 | 30% |
| $120,000-$180,000 | 37% | $135,001 – $190,000 | 37% |
| > $180,001 | 45% | >$190,001 | 45% |
“For people with a taxable income of, for example, $100,000 per year, they’ll pay $2,179 less tax in 2024/25 than 2023/24,” explains John. “On a taxable income of $150,000 per year, that will increase to a saving of $3,729.”
For more information about the new tax rates for 2024/25 and how they will affect you, speak to your Crystal Wealth adviser.