The government has announced tax cuts for the 2024/25 financial year to ease the rising cost of living.
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.