2024/25 Federal Budget
Personal Income Tax Measures
Stage three personal tax cuts
The Government has confirmed the revised stage three personal tax cuts that were announced prior to the Federal Budget being handed down and which have already been enacted into law. Refer to the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024.
The following tables outline the marginal income tax rates and thresholds that apply for resident and foreign resident individuals under the revised stage three personal tax cuts from 1 July 2024 (i.e., from the 2025 income year). The tax rates and thresholds that apply for the 2024 income year are included for comparative purposes.
Australian resident individual income tax rates
Foreign resident individual income tax rates
Foreign resident individual income tax ratesIncreased Medicare levy low-income thresholds
Increased Medicare levy low-income thresholdsThe Government has increased the Medicare levy low-income threshold amounts and phase-in ranges for singles, families and seniors and pensioners that apply from 1 July 2023.
The increased Medicare levy low-income threshold amounts and phase-in ranges were announced prior to the Federal Budget being handed down and have already been enacted into law. Refer to the Treasury Laws Amendment (Cost of Living – Medicare Levy) Act 2024.
The Medicare Levy low-income thresholds for individuals and families for the 2024 income year are as follows:
For each dependent child or student, the family income thresholds will increase by a further $4,027.
The Carrick Aland team are available to assist you to capitalise on any of the Budget measures or minimise your risk. As always, the detail is important so please let us know if we can assist.
Related reading
Source: NTAA
