What Will I Save From the Stage 3 Tax Cuts?

​Last week the Australian government rubber-stamped amendments to the Stage Three Tax Cuts. ​

​In summary, the amended changes provide a greater tax cut to those with a taxable income under $150,000. Conversely, tax cuts for those with higher incomes will be scaled back.  ​​

The amendments will reduce the tax cut for high-income earners by $4,565. Low and middle-income workers receive up to an additional $804 in their pocket.   ​

Major changes include:  ​

• Reducing the bottom income tax bracket from 19% to 16%  ​

• Retaining the 37% tax bracket for taxable income between $135,000 to $190,000. Previously this was slated to be 30%  ​

• Reducing the 45% tax bracket from $200,000 to $190,000 ​

The new tax brackets come into effect from July 1 2024 and are applicable for financial years FY25 onwards.  ​

Should you wish to discuss the amendments in more detail, don’t hesitate to contact us and we’ll put you in touch with with of our trusted financial advisers.