Posted by Dean McKinnon
on 16 February 2024
The federal government recently announced that they would propose changes to the legislated income tax rates, commencing in the 2024-2025 FY
- The proposed tax rate (legislated by the previous government) was to commence 1 July 2024 and included abolishing the 37% Marginal Tax Rate, with a new 30% rate on taxable income between $45,000 and $200,000
- The current government intends to not proceed with the legislated tax rates and introduce their own tax brackets including a 37% income tax rate
- The likely new tax brackets from 1 July 2024 will be as follows:
- >| $18,200 | Nil (no change)
- $18,201-$45,000 | 16% (currently 19%)
- $45,001-$135,000 | 30.00% (currently $45,001–$120,000 | 32.5%)
- $135,001-$190,000 | 37% (currently $120,000-$180,000)
- >$190,000 | 45% (currently >$180,000)