Designed to provide bigger tax cuts for middle Australia to help with cost-of-living pressures, tax rates will be changing From 1 July 2024.
Amongst other changes, it also appears that at this stage the tax free threshold has remained the same at $18,200, the medicare levy low income threshold will increase (which means the lower income earner can earn a little bit more and still be exempt from the medicare levy) and Employer Superannuation Contributions (SGC) will increase from 11% to 11.5%.
Tax Rates summarised are as follows :
Reduce the 19 per cent tax rate to 16 per cent
Reduce the 32.5 per cent tax rate to 30 per cent
Increase the threshold above which the 37 per cent tax rate applies from $120,001 to $135,000
Increase the threshold above which the 45 per cent tax rate applies from $180,001 to $190,000.
For more information, or for assistance with your next tax return please contact us and book an appointment.
This articles intention is to inform rather than advise and is based on legislation at the time. Each Taxpayer’s circumstances vary so we strongly recommend that you discuss this information with your Tax Agent, Accountant or Bas Agent before implementation. If you take, or do not take action as a result of reading this article, we accept no responsibility for any financial loss incurred. This is general advice only.