On 25 January 2024, the Australian Taxation Office (ATO) declared proposed changes to individual income tax rates and thresholds from 1 July 2024. These changes are yet to become law.

The key proposed tax cuts will:

  • reduce the 19 % tax rate to 16%
  • reduce the 32.5 % tax rate to 30%
  • increase the threshold above which the 37% tax rate applies from $120,000 to $135,000
  • increase the threshold above which the 45% tax rate applies from $180,000 to $190,000