There has been continued speculation around what the government intends to do to assist the country with the rise in the cost of living. The 2024/25 financial year has proposed changes to leave Australians with greater take home pay due to the below adjustments to the tax tables. 

From 1 July 2024, the tax cuts will:

Reduce the 19% tax rate to 16%

Reduce the 32.5% tax rate to 30%

Increase the threshold which the 37% tax rate applies from $120,000 to $135,000

Increase the threshold which the 45% tax rate applies from $180,000 to $190,000

All 13.6 million Australian taxpayers will receive a tax cut from 2024–25 onwards.

Examples of tax cuts would look akin to:

$45,000 annual salary would receive a tax cut of: $804
$55,000 annual salary would receive a tax cut of: $1054
$70,000 annual salary would receive a tax cut of: $1429
$100,000 annual salary would receive a tax cut of: $2179

The Government is also increasing 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.

As we draw closer to budget time, Eziway will provide further updates on the Governments position.