Despite previous assurances, and after much speculation, the Government has announced tweaks to the ‘Stage 3’ tax cuts that will apply from 1 July 2024.
More particularly, the Government proposes to:
- 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;
- increase the threshold at which the 45% tax rate applies from $180,000 to $190,000; and
- The Medicare levy low-income thresholds for the 2024 income year will also be increased.