As expected, the Federal Government is proceeding with the previous government’s personal income tax changes, which include the Stage 3 tax cuts and cessation of the Low and Middle Income Tax Offset.
Medicare Levy, Medicare Levy Surcharge and Personal Tax Rates
There have been no changes announced to the Medicare levy and surcharge thresholds. Further, there have been no changes to the personal income tax rates for the 2022-23 income year or for subsequent years. This means that:
- The 2021–22 income year will be the last year that the Low and Middle Income Tax Offset (LMITO) is available.
- Personal income tax rate reductions will be applied for income years commencing 1 July 2024 and onwards.
The proposed tax rates for resident individuals from previous budgets are contained in the following tables (excluding Medicare levy).
2022–23 and 2023–24
Taxable income |
Tax on this income |
|---|---|
$0 – $18,200 |
Nil |
$18,201 – $45,000 |
19 cents for each $1 over $18,200 |
$45,001 – $120,000 |
$5,092 plus 32.5 cents for each $1 over $45,000 |
$120,001 – $180,000 |
$29,467 plus 37 cents for each $1 over $120,000 |
$180,001 and over |
$51,667 plus 45 cents for each $1 over $180,000 |
Proposed changes for 2024–25
Taxable income |
Tax on this income |
|---|---|
$0 – $18,200 |
Nil |
$18,201 – $45,000 |
19 cents for each $1 over $18,200 |
$45,001 – $200,000 |
$5,092 plus 30 cents for each $1 over $45,000 |
$200,001 and over |
$51,592 plus 45 cents for each $1 over $200,000 |
