Tax cuts update 2024
Causbrooks News
Published
5 Jul
2024
Authored by: Darrel Causbrook
Causbrooks News
Published
5 Jul
2024
Authored by: Darrel Causbrook
From 1 July 2024, the Australian Government is set to implement significant changes to personal income tax rates and thresholds which will effect virtually all Australian taxpayers. These adjustments, which form part of the broader federal budget efforts, aim to alleviate cost of living pressures.
The upcoming changes are reductions in key tax rates and increases in income thresholds. Specifically, the 19 per cent tax rate will drop to 16 per cent, and the 32.5 per cent rate will decrease to 30 per cent. Additionally, the income thresholds for the 37 per cent and 45 per cent tax rates will see upward revisions, enabling more taxpayers to retain a greater portion of their earnings. This legislative move by the Australian Government ensures the benefits of these tax cuts will reach approximately 13.6 million Australian taxpayers, effectively putting more money back into the pockets of individuals across the nation.
Your upcoming tax cut will take effect starting 1 July 2024, aligning with the new changes in the personal income tax rates and thresholds. From that date, you will notice that less tax is being deducted from your regular pay, allowing you to retain more of your income.
However, some individuals will receive the benefits of these tax cuts differently. Depending on your tax sitution, you might see this adjustment reflected only after you lodge your tax return for the 2024-2025 financial year.
For those looking to understand exactly how these changes might impact their finances, the Australian Government provides a tax cut calculator. This tool can help you estimate the amount you will save annually due to the revised tax rates and thresholds.
The upcoming financial year of 2024-2025 will introduce new individual tax rates and thresholds. The table below provides a comparison between the existing tax rates and thresholds for the 2023-24 financial year and the updated figures for 2024-25. These changes are designed to reduce the tax burden on Australian taxpayers and adjust the points at which different tax rates apply.
Understanding how individual income tax rates and income thresholds work is essential for managing your finances effectively. Starting from 1 July 2024, new tax rates and thresholds will be implemented, affecting how much tax you pay.
Everyone has a tax-free threshold of $18,200, meaning you can earn up to this amount each year without paying any income tax.
Here's how the new tax structure works:
Additionally, certain groups such as low-income earners and seniors may qualify for tax offsets, which can further reduce the amount of tax payable.
Contact Causbrooks today to schedule your complementary consultation and make the most of the forthcoming tax adjustments.
At Causbrooks, we’re dedicated to helping legal professionals with their taxation and accounting needs. If you’d like to discuss your own situation, please complete the form below.
We have been working with legal professionals for going on three decades and during that time we have helped many barristers in the early stages of their careers by establishing a strong foundation of tax compliance, bookkeeping, cashflow budgeting, and tax planning.
Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.
From 1 July 2024, the Australian Government is set to implement significant changes to personal income tax rates and thresholds which will effect virtually all Australian taxpayers. These adjustments, which form part of the broader federal budget efforts, aim to alleviate cost of living pressures.
The upcoming changes are reductions in key tax rates and increases in income thresholds. Specifically, the 19 per cent tax rate will drop to 16 per cent, and the 32.5 per cent rate will decrease to 30 per cent. Additionally, the income thresholds for the 37 per cent and 45 per cent tax rates will see upward revisions, enabling more taxpayers to retain a greater portion of their earnings. This legislative move by the Australian Government ensures the benefits of these tax cuts will reach approximately 13.6 million Australian taxpayers, effectively putting more money back into the pockets of individuals across the nation.
Your upcoming tax cut will take effect starting 1 July 2024, aligning with the new changes in the personal income tax rates and thresholds. From that date, you will notice that less tax is being deducted from your regular pay, allowing you to retain more of your income.
However, some individuals will receive the benefits of these tax cuts differently. Depending on your tax sitution, you might see this adjustment reflected only after you lodge your tax return for the 2024-2025 financial year.
For those looking to understand exactly how these changes might impact their finances, the Australian Government provides a tax cut calculator. This tool can help you estimate the amount you will save annually due to the revised tax rates and thresholds.
The upcoming financial year of 2024-2025 will introduce new individual tax rates and thresholds. The table below provides a comparison between the existing tax rates and thresholds for the 2023-24 financial year and the updated figures for 2024-25. These changes are designed to reduce the tax burden on Australian taxpayers and adjust the points at which different tax rates apply.
Understanding how individual income tax rates and income thresholds work is essential for managing your finances effectively. Starting from 1 July 2024, new tax rates and thresholds will be implemented, affecting how much tax you pay.
Everyone has a tax-free threshold of $18,200, meaning you can earn up to this amount each year without paying any income tax.
Here's how the new tax structure works:
Additionally, certain groups such as low-income earners and seniors may qualify for tax offsets, which can further reduce the amount of tax payable.
Contact Causbrooks today to schedule your complementary consultation and make the most of the forthcoming tax adjustments.
At Causbrooks, we’re dedicated to helping legal professionals with their taxation and accounting needs. If you’d like to discuss your own situation, please complete the form below.
We have been working with legal professionals for going on three decades and during that time we have helped many barristers in the early stages of their careers by establishing a strong foundation of tax compliance, bookkeeping, cashflow budgeting, and tax planning.
Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.
Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!