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The Australian Government has made changes to individual income tax rates and thresholds. This will apply to all taxable income you earn from 1 July 2024. The changes will not impact your 2023–24 tax return.

From 1 July this year, these changes will:

• reduce the 19 per cent tax rate to 16 per cent
• reduce the 32.5 per cent tax rate to 30 per cent
• increase the 37 per cent tax threshold from $120,000 to $135,000
• increase the 45 per cent tax threshold from $180,000 to $190,000.

How do income tax rates and thresholds work?

New individual income tax rates and thresholds will come into effect from 1 July 2024. If you are an Australian taxpayer, you are entitled to the tax-free threshold of $18,200. This means you can earn up to $18,200 each year without paying tax.

If you earn between $18,201 and $45,000:

• your first $18,200 remains tax free, and
• you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000.

If you earn between $45,001 and $135,000:

• your first $18,200 remains tax free, and
• you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000, plus
• 30 cents tax on every dollar you earn between $45,001 and $135,000.

If you earn between $135,001 and $190,000:

• your first $18,200 remains tax free, and
• you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000, plus
• 30 cents tax on every dollar you earn between $45,001 and $135,000, plus
• 37 cents tax on every dollar you earn between $135,001 and $190,000.

If you earn over $190,000:

• your first $18,200 remains tax free; and
• you will pay 16 cents tax on every dollar you earn between $18,201 and $45,000, plus
• 30 cents tax on every dollar you earn between $45,001 and $135,000, plus
• 37 cents tax on every dollar you earn between $135,001 and $190,000, plus
• 45 cents tax on every dollar you earn above the $190,000 threshold.

Certain taxpayers, such as low-income taxpayers and senior Australians may also be eligible for tax offsets that directly reduce their final tax liability.

For more information on paying tax on your income, visit the .