Your Guide to Australian Tax Cuts 2024: What You Need to Know

Definition of Tax Cut

A tax cut refers to a reduction in the rates or thresholds of income tax, resulting in a decrease in the amount of tax an individual or business is required to pay to the government. It aims to lower the tax burden on taxpayers, allowing them to retain more of their income.

As part of its efforts to alleviate cost-of-living pressures, the Australian Government has introduced significant changes to income tax rates and thresholds effective from 1 July 2024. These adjustments are designed to provide financial relief to Australian taxpayers, ensuring more money stays in their pockets.

Understanding the Changes

 Here’s a breakdown of the updated tax brackets and rates compared to the previous system:

 Impact on Taxpayers

 For example, if you earn $60,000 annually, under the previous tax rates, you would pay approximately $11,067 in tax. With the new rates, your tax liability reduces to around $9,888, saving you approximately $1,179 per year.

Automatic Adjustments

Taxpayers need not take any action to benefit from these changes. Employers will adjust Pay As You Go (PAYG) withholding tax from 1 July 2024 to reflect the new rates, ensuring your take-home pay accurately reflects the reduced tax burden.

How Aero Accounting Group Can Help

Navigating tax changes can be complex, and maximising your savings requires strategic planning. At Aero Accounting Group, we specialise in optimising tax strategies for individuals and businesses alike. Whether you need assistance understanding how these changes affect you or want to explore additional tax-saving opportunities, our expert team is here to help.

Ready to maximise your tax savings under the new rates? Contact Aero Accounting Group today for personalised advice and ensure you’re making the most of these recent tax cuts.