The revised stage 3 tax cuts have passed Parliament and will come into effect on 1 July 2024.
Before the new tax rates come into effect, check any salary sacrifice agreements to ensure that they will continue to produce the result you are after.
Resident individuals
| Tax rate | 2023-24 | 2024-25 |
| 0% | $0 – $18,200 | $0 – $18,200 |
| 16% | $18,201 – $45,000 |
|
| 19% | $18,201 – $45,000 |
|
| 30% | $45,001 – $135,000 |
|
| 32.5% | $45,001 – $120,000 |
|
| 37% | $120,001 – $180,000 |
$135,001 – $190,000 |
| 45% | >$180,000 | >$190,000 |
Non-resident individuals
| Tax rate | 2023-24 | 2024-25 |
| 30% | $0 – $135,000 | |
| 32.5% | $0 – $120,000 | |
| 37% | $120,001 – $180,000 |
$135,001 – $190,000 |
| 45% | >$180,000 | >$190,000 |
Working holiday makers
| Tax rate | 2023-24 | 2024-25 |
| 15% | 0 – $45,000 | 0 – $45,000 |
| 30% | $45,001 – $135,000 |
|
| 32.5% | $45,001 – $120,000 |
|
| 37% | $120,001 – $180,000 |
$135,001 – $190,000 |
| 45% | >$180,000 | >$190,000 |
What now?
If you have any concerns about the impact of the legislated changes, please call us to discuss.
For tax planning purposes, for those with taxable income of $150,000 or more, the redesigned Stage 3 tax cuts offer less planning opportunity than the current plan. But, any change in the tax rates is an opportunity to review and reset to ensure you are taking advantage of the opportunities available, and not paying more than you need.