Millions of Australians to experience ‘immediate boost in take-home pay’ on this date

Australians eagerly awaiting their tax return for a much-needed cash boost may be disappointed this year, as the government’s “tax cuts to help with the cost of living” won’t be reflected in their returns until after June 3. However, the stage 3 tax cuts set to kick in on July 1, 2024, are expected to make a significant impact on workers’ take-home pay.

The new tax cuts include a reduction in the 19 per cent tax rate to 16 per cent for those earning $45,000, a decrease in the 32.5 per cent rate to 30 per cent for incomes between $45,000 and $135,000, and an increase in the threshold for the 37 per cent rate to apply to $135,000. Additionally, the threshold for the 45 per cent tax rate will be raised to $190,000.

The changes in the tax brackets aim to provide relief to low and middle-income earners who have been struggling with the rising cost of living. The revised tax cuts, which were controversially reduced for the wealthy and redirected to benefit those on lower incomes, are expected to put more money in the pockets of hard-working families.

Taxpayers do not need to take any action to receive the tax cut, as employers will automatically adjust the amount of tax taken out of their pay. This means that workers should see an immediate increase in their take-home pay starting from July 1.

Overall, the redistribution of tax cuts is expected to provide much-needed financial relief to Australians facing inflation and rising living costs.