New Changes to Tax Rates and Thresholds Raise Questions Amidst Speculation
What You Need to Know
Despite previous assurances, and after much speculation, the Government has announced tweaks to the ‘Stage 3’ tax cuts that will apply from 1 July 2024.
More particularly, the Government proposes to:
- reduce the 19% tax rate to 16%
- reduce the 32.5% tax rate to 30% for incomes between $45,000 and a new $135,000 threshold
- increase the threshold at which the 37% tax rate applies from $120,000 to $135,000; and
- increase the threshold at which the 45% tax rate applies from $180,000 to $190,000.
The Medicare levy low-income thresholds for the 2024 income year will also be increased.
It’s not a sure thing just yet!
The Government will need to quickly enact amending legislation to make the redesigned Stage 3 tax cuts a reality by 1 July 2024. This will involve garnering the support of the independents or minor parties to secure its passage through Parliament.
If you have any concerns about the impact of the proposed changes please contact Omnis Group Business Accountants in West Perth on 08 9380 3555.