Individual Tax Rate FY2024-25

Effective from July 1, 2024, the approved changes to individual income tax rates and thresholds are now enacted:

• The 19% tax rate will be reduced to 16%.

• The 32.5% tax rate will be reduced to 30%.

• The threshold for the 37% tax rate will increase from $120,000 to $135,000.

• The threshold for the 45% tax rate will increase from $180,000 to $190,000.

Table 1: https://taxcuts.gov.au/

 These adjustments signify that starting July 1, most taxpayers will experience reduced tax deductions per paycheck, allowing them to retain a larger portion of their earnings.

 For some taxpayers, the tax reduction will be realized upon filing and processing their tax returns after the conclusion of the 2024‑2025 financial year.

 Utilize the tax cut calculator to estimate your projected annual tax reduction.

If you have any questions in relation to the tax return, please contact our friendly team.