Stage 3 Tax Cuts

Tuesday, 23 January 2024

Income Tax Reduction

Stage 3 of the Coalition Government’s income tax reduction plan is scheduled to come into effect from 1 July 2024. This will grant a tax reduction to taxpayers earning greater than $45,000 and less than $200,001 a year. Below tables will help provide some idea of your tax reduction for 2024-25 in relation to Stage 3 Tax Cuts. 

Stage 3 Tax Reductions for 2024

Select your wage below to see the reduction

Under Stage 3 Tax Cuts:

No tax changes to this bracket

Under Stage 3 Tax Cuts:
Taxed less: $125 (compared to previous financial year)

Under Stage 3 Tax Cuts:
Taxed less: $375 (compared to previous financial year)

Under Stage 3 Tax Cuts:
Taxed less: $625 (compared to previous financial year)

Under Stage 3 Tax Cuts:
Taxed less: $875 (compared to previous financial year)

Under Stage 3 Tax Cuts:
Taxed less: $1125 (compared to previous financial year)

Under Stage 3 Tax Cuts:
Taxed less: $1375 (compared to previous financial year)

Under Stage 3 Tax Cuts:
Taxed less: $1625 (compared to previous financial year)

Under Stage 3 Tax Cuts:
$120,000

Taxed less: $1875
$130,000
Taxed less: $2575
$140,000
Taxed less: $3275
$150,000
Taxed less: $3975
$160,000
Taxed less: $4675
$170,000
Taxed less: $5375
$180,000
Taxed less: $6075
$190,000
Taxed less: $7575
$200,000- 250,000
Taxed less: $9075


(compared to previous financial year)

Australian residents tax rates

Previous 
2023–24
 

Taxable income

Tax on this income

0 – $18,200

Nil

$18,201 – $45,000

19c for each $1 over $18,200

$45,001 – $120,00

$5,092 plus 32.5c for each $1 over $45,000

$120,001 – $180,000

$29,467 plus 37c for each $1 over $120,000

   
Planned 
2024–25
 

Taxable income

Tax on this income

0 – $18,200

Nil

$18,201 – $45,000

19c for each $1 over $18,200

$45,001 – $200,00

$5,092 plus 30c for each $1 over $45,000

$200,001 and over

$51,592 plus 45c for each $1 over $200,000

 

 

Key Assumptions

  1. The income is the taxpayers assessable income, net of any deductions.
  2. This model does not account for the Medicare Levy, Medicare Levy Surcharge or other tax offsets the taxpayer may be eligible to receive.
  3. This model does not account for any HELP loan repayments the taxpayer may be required to make (if any).
  4. Taxpayer is an Australian tax resident in both income years.
  5. All numbers are rounded to the nearest dollar.
  6. The figures are a guide only, more info at Treasury.gov.au/tax-cuts