Changes to Individual income tax rates and thresholds from 1 July 2024.
On 25 January 2024, the government announced changes to Individual income tax rates and thresholds from 1 July 2024. These changes are now law.
From 1 July 2024, the tax cuts have:
reduced the 19 per cent tax rate to 16 per cent
reduced the 32.5 per cent tax rate to 30 per cent
increased the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
increased the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
The table below shows the result of the changes in tax rates for Senior Australian and pensioner tax offset (SAPTO).
Senior Australian and pensioner tax offset (SAPTO) thresholds from 1 July 2024
Status | Maximum tax offset amount | Shade out threshold | Cut-out threshold |
Single | $2,230 | $34,919 | $52,759 |
Each partner of a couple | $1,602 | $30,994 | $43,810 |
Each partner of an illness separated couple | $2,040 | $33,732 | $50,052 |
For more information see Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024 (Act No. 3 of 2024)
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