Stage 3 tax cuts

transport truck

The Australian government has introduced Stage 3 tax cuts, which will take effect from July 1, 2024. These changes are set to impact many Australians, adjusting the amount of tax you’ll pay based on your income. Here’s a breakdown of what these tax cuts mean for you:

New Tax Rates and Brackets

The Stage 3 tax cuts will adjust income tax rates and brackets as follows:

Income Range New Tax Rate
Up to $18,200 0%
$18,201 – $45,000 16%
$45,001 – $135,000 30%
$135,001 – $190,000 37%
Above $190,000 45%

How Will This Affect You?

  • For those earning up to $45,000: Expect a reduction in tax rate from 19% to 16%, potentially increasing your take-home pay.
  • Incomes between $45,001 and $135,000: You’ll be taxed at a 30% rate, simplifying the tax bracket and potentially reducing the amount of tax you pay.
  • Earning between $135,001 and $190,000: Your tax rate remains at 37%, but the bracket has been adjusted to accommodate higher incomes without moving to the 45% rate.
  • Above $190,000: The tax rate stays at 45%, with no change for the highest earners.

Key Takeaways

  • Wider Tax Brackets: Most notably, the 37% tax bracket has been expanded, and a new 30% rate introduces a significant change for those earning up to $135,000.
  • More Money in Your Pocket: Lower and middle-income earners are the primary beneficiaries, with reduced rates designed to alleviate cost-of-living pressures.
  • A Simpler System: These changes aim to simplify tax calculations and ensure that a larger proportion of earners benefit from reduced tax rates.

Need more help or information?

Click the link below to contact us at Plus 1.

Open Hours

Monday to Friday
8:00am to 5:00pm

Closed Public Holidays


If you need to get us documents quickly, access remote support, or the MYOB Portal click the button above.

Contact Us

27 Welsford Street
Shepparton, VIC 3630

T: (03) 5833 3000
F: (03) 5831 2988
Email Us