In a move to alleviate the financial strain on Australian households, the government has unveiled a comprehensive tax cut plan slated to take effect from 1st July 2024. With a focus on providing much-needed relief to taxpayers, the initiative promises significant adjustments to tax rates and thresholds. This article delves into the specifics of the tax cuts and their anticipated impact on individuals and families across the nation.
Starting from July 1st, 2024, the legislation entails the following adjustments:
- The tax rate of 19% will decrease to 16% for incomes ranging from $18,200 to $45,000.
- The tax rate of 32.5% will decrease to 30% for incomes between $45,000 and the new threshold of $135,000.
- The threshold at which the 37% tax rate is applicable will rise from $120,000 to $135,000.
- The threshold at which the 45% tax rate is applicable will rise from $180,000 to $190,000.
