Stage 3 Tax Cuts: How Much Money You❜ll Save From July 2024

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Alright, money-savvy Australians, get ready for some good news. Treasurer Jim Chalmers has unveiled his tax reform plan in the 2024 Federal Budget, and it's packed with perks.

Besides a cool $300 relief on your energy bills, a hefty $1.1 billion to boost superannuation on paid parental leave, and a generous $20,000 tax boost for small businesses, there's one change that's on everyone's lips: the Stage 3 Tax Cuts.

Stage 3 Tax Cuts: How Much Money You'll Save From July 2024

Stage 3 Tax Cuts: How Much Money You'll Save From July 2024
Stage 3 Tax Cuts: How Much Money You'll Save From July 2024

Starting from 1 July 2024, most Australian workers will get to keep more of their hard-earned cash as the 2023-2024 financial year wraps up. If you're still a bit fuzzy on the details, don’t worry, we've broken down exactly how much money you'll save come tax time.

How Much Extra Money Will I Get from Stage 3 Tax Cuts?

From 1 July, marginal tax rates are set to shift, putting more money back into your weekly paycheck. Here's the scoop on what you can expect based on your income bracket:

  • Earn up to $18,200 – You're in the clear, no tax for you.
  • Earn between $18,201–$45,000 – You'll pay a 16% tax rate on each dollar earned.
  • Earn between $45,001–$135,000 – Your tax rate is 30% on each dollar.
  • Earn between $135,001–$190,000 – You're looking at a 37% tax rate.
  • Earn above $190,000 – The rate jumps to 45% on each dollar earned over this amount.

What Were the Tax Brackets Going to Be?

Initially, the plan was a bit different, offering the biggest tax cuts to high-income earners and a modest break for those in the middle:

  • Earn up to $18,200 – Still no tax.
  • Earn between $18,201–$45,000 – You would've seen a 19% tax rate.
  • Earn between $45,001–$200,000 – A 30% tax rate would apply here.
  • Earn above $200,000 – The tax rate would've been 45%.

With these new brackets, it's clear that most Aussie workers will see more money in their pockets come July. So, keep an eye on your payslip, and get ready to enjoy a bit more financial freedom!

Stage 3 Tax Cuts Calculator

Still a bit fuzzy on the details? ABC News have put together a handy tax cuts calculator to do the maths for you!

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