The Australian Government has made changes to individual income tax rates and thresholds. This will apply to all taxable income you earn from 1 July 2024. The changes will not impact your 2023–24 tax return.

From 1 July this year, these changes will:
• 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 37 per cent tax threshold from $120,000 to $135,000
• increase the 45 per cent tax threshold from $180,000 to $190,000.

These changes will deliver a tax cut to every Australian taxpayer.

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. Note that the below quoted rates do not include Medicare Levy.

Thresholds and rates in 2023–24
$0 to $18,200 – Tax Free
$18,201 to $45,000 – 19%
$45,001 to $120,000 – 32.5%
$120,001 to $180,000 – 37%
Over $180,000 – 45%

Thresholds and rates in 2024–25
$0 to $18,200 – Tax Free
$18,201 to $45,000 – 16%
$45,001 to $135,000 – 30%
$135,001 to $190,000 – 37%
Over $190,000 – 45%

If you have any queries or wish to discuss how these changes may impact your personal situation, please contact our office.