Tax Rates for 2024/25 Financial Year

The government has released draft legislation for the Stage 3 tax cuts.

The Exposure Draft – Treasury Laws Amendment (Cost of Living Tax Cuts) Bill 2024 will:

• Reduce the 19% tax rate to 16%
• Reduce the 32.5% tax rate to 30%
• Increase the threshold above which the 37% tax rate applies from $120,000 to $135,000
• Increase the threshold above which the 45% tax rate applies from $180,000 to $190,000.

Foreign residents

For 2024-25 and later income years, the tax rates for foreign residents will be:

• $0 – $135,000 – 30%
• $135,001 – $190,000 – 37%
• $190,001+ – 45%.

Working holidaymakers

For 2024-25 and later income years, the rates of tax for working holiday makers will be:

• $0 – $45,000 – 15%
• $45,001 – $135,000 – 30%
• $135,001 – $190,000 – 37%
• $190,001+ – 45%.

Date of effect: The bill will commence from the first quarter after the bill receives assent, applicable from the 2024-25 income year.