DFK Gooding Partners
February 16, 2024
The federal government has announced an overhaul of the previous Coalition Government stage three tax cuts. The overhaul also introduces various changes in the personal tax rates that apply from 2024–25 income year and onwards.
Changing the original course of action, as announced by the previous Coalition Government, the new tax changes aim to focus on the low and middle income earners to help with the cost-of-living pressures. The following thresholds have been proposed to the personal tax rates:
| Proposed income threshold: 2024−25 onwards ($) | Proposed tax rate: 2024−25 onwards (%) |
|---|---|
| 0−18,200 | 0 |
| 18,201−45,000 | 16 |
| 45,001−135,000 | 30 |
| 135,001−190,000 | 37 |
| >190,001 | 45 |
The current tax thresholds and rates for 2023—24 are as follows:
| Current income threshold ($) | Current tax rate (%) |
|---|---|
| 0−18,200 | 0 |
| 18,201−45,000 | 19 |
| 45,001−120,000 | 32.5 |
| 120,001−180,000 | 37 |
| >180,001 | 45 |
Increases to the low-income Medicare threshold
In addition to changing the tax rates and thresholds, the Government will also increase the low-income Medicare threshold and exempt more low-income earners from the 2% Medicare levy charge, it is yet to be seen if this increase will be usual increase by consumer price index (CPI) or more.
A 12-month long price enquiry will be conducted by the Australian Competition and Consumer Commission (ACCC) to scrutinise the supermarket pricing and the difference between farmgate and retail pricing shoppers end up paying.
Please note, the proposed changes are currently in the announcement stage and require parliamentary approval to become law.
Discuss your tax obligations with our team today.
Complete the quick contact form below with your details and one of our team will be in touch to discuss your requirements. Alternatively, you can call us (08) 9327 1777 or email info@dfkgpca.com.au.
