The Government recently passed changes to the Stage 3 tax cuts applying from 1 July 2024.  These changes provide a tax break to low and middle-income earners by:

• reducing the 19% tax rate to 16%;
• reducing the 32.5% tax rate to 30% for incomes between $45,000 and a new $135,000 threshold;
• increasing the threshold at which the 37% tax rate applies from $120,000 to $135,000; and
• increasing the threshold at which the 45% tax rate applies from $180,000 to $190,000.

The Medicare levy low-income thresholds for the 2024 income year will also be increased.