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When will I receive my tax cut?
The individual income tax rates and thresholds will change from 1 July 2024.
This means from 1 July, for most taxpayers, you will pay less tax each payday and keep more of what you earn.
Some taxpayers will receive their tax cut when a tax return is lodged and processed after the end of the 2024-2025 financial year.
You can use the tax cut calculator to estimate your annual tax cut.
New individual tax rates and thresholds for 2024–25
This table compares the individual income tax rates and thresholds for 2023–24 with the new tax rates and thresholds for 2024–25.
|
Thresholds in 2023–24 ($) |
Rates in 2023–24 (%) |
|
0 – 18,200 |
Tax free |
|
18,201 – 45,000 |
19 |
|
45,001 – 120,000 |
32.5 |
|
120,001 – 180,000 |
37 |
| Over 180,000 |
45 |
|
Thresholds in 2024–25 ($) |
Rates in 2024–25 (%) |
| 0 – 18,200 |
Tax free |
|
18,201 – 45,000 |
16 |
|
45,001 – 135,000 |
30 |
|
135,001 – 190,000 |
37 |
|
Over 190,000 |
45 |
How do income tax rates and thresholds work?
New individual income tax rates and thresholds will come into effect from 1 July 2024. If you are an Australian taxpayer, you are entitled to the tax-free threshold of $18,200. This means you can earn up to $18,200 each year without paying tax.
If you earn between $18,201 and $45,000:
- your first $18,200 remains tax free, and
- you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000.
If you earn between $45,001 and $135,000:
- your first $18,200 remains tax free, and
- you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000, plus
- 30 cents tax on every dollar you earn between $45,001 and $135,000.
If you earn between $135,001 and $190,000:
- your first $18,200 remains tax free, and
- you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000, plus
- 30 cents tax on every dollar you earn between $45,001 and $135,000, plus
- 37 cents tax on every dollar you earn between $135,001 and $190,000.
If you earn over $190,000:
- your first $18,200 remains tax free; and
- you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000, plus
- 30 cents tax on every dollar you earn between $45,001 and $135,000, plus
- 37 cents tax on every dollar you earn between $135,001 and $190,000, plus
- 45 cents tax on every dollar you earn above the $190,000 threshold.
Call us on 0449 952 855 (Williams Landing) or 0404 667 909 (Doreen) to book a no-obligation appointment to assess your current taxation circumstances.
