The Government has announced it will deliver tax cuts to all Australian taxpayers, to provide cost-of-living relief.

From 1 July 2024, the 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

Legislation will be introduced to enact these changes.

The Government also announced that it will increase the Medicare levy low-income thresholds for 2023-24.

This means people on lower incomes continue to pay a reduced levy rate or are exempt from the Medicare levy.