To assist with “cost of living relief”, the government has proposed amendments to the Stage 3 tax cuts.

These changes are yet to be passed in the Senate.

From 1 July 2024, the revised Stage 3 tax cuts will:

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

There will be no change to the current tax-free threshold of $18,200.