On 25 January 2024, the government announced changes to Individual income tax rates and thresholds from 1 July 2024. These changes are now law.
From 1 July 2024, the tax cuts have:
- reduced the 19 per cent tax rate to 16 per cent
- reduced the 32.5 per cent tax rate to 30 per cent
- increased the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
- increased the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
The table below shows the result of the changes in tax rates for Senior Australian and pensioner tax offset (SAPTO).
|
Status |
Maximum tax offset amount |
Shade out threshold |
Cut-out threshold |
|---|---|---|---|
|
Single |
$2,230 |
$34,919 |
$52,759 |
|
Each partner of a couple |
$1,602 |
$30,994 |
$43,810 |
|
Each partner of an illness separated couple |
$2,040 |
$33,732 |
$50,052 |
For more information see Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024External Link (Act No. 3 of 2024)