We recently wrote about the proposed changes to the Stage 3 tax cuts and also provided an update on the Sky Accountants Podcast.
To recap, the Stage 3 tax cuts had previously been legislated and were due to commence on the 1st of July 2024. Those tax rate changes favored higher income earners and had been the subject to ongoing debate that culminated with Prime Minister Anthony Albanese announcing changes to more broadly distribute the benefits of the tax cuts.
Objectively, this announcement represented a clear breach of the promise made during the most recent election campaign for which the Government will take some heat.
Be that as it may, the amendments have been broadly supported with Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 passing both Houses of Parliament on the 27th of February without amendment.
Pending the formality of Royal Assent, the announced tax rates will commence on the 1st of July 2024.
Those tax rates being:
| Taxable Income | Tax Rate |
| $0-$18,200 | 0% |
| $18,201-$45,000 | 16% |
| $45,001-$135,000 | 30% |
| $135,001-$190,000 | 37% |
| >$190,000 | 45% |
If you have any questions about the new tax rates, please get in touch.
Sky Accountants Ballarat
Phone: 03 5332 8855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 5428 1400
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437