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INDIVIDUAL INCOME TAX RATES AND THRESHOLD CHANGES
INDIVIDUAL INCOME TAX RATES AND THRESHOLD CHANGES
Changes to Individual income tax rates and thresholds from 1 July 2024.
On 25 January 2024, the government announced changes to Individual income tax rates and thresholds from 1 July 2024. These changes are now law.
From 1 July 2024, the tax cuts have:
reduced the 19 per cent tax rate to 16 per cent
reduced the 32.5 per cent tax rate to 30 per cent
increased the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
increased the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
For more information see Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024
ABOUT TAX RATES FOR AUSTRALIAN RESIDENTS
ABOUT TAX RATES FOR AUSTRALIAN RESIDENTS
Use these tax rates if you were both:
an Australian resident for tax purposes for the full year
entitled to the full tax-free threshold.
These rates don't include the Medicare levy or the Medicare levy surcharge, see:
For more information see ATO Tax rates - Australian resident
RESIDENT TAX RATES 2024-25
RESIDENT TAX RATES 2024-25
TAXABLE INCOME
0 - $18,200
$18,201 - $45,000
$45,001 - $135,000
$135,001 - $190,000
$190,001 and over
TAX ON THIS INCOME
Nil
16c for each $1 over $18,200
$4,288 plus 30c for each $1 over $45,000
$31,288 plus 37c for each $1 over $135,000
$51,638 plus 45c for each $1 over $190,000
COMPANY TAX RATES
COMPANY TAX RATES
Company tax rates apply to entities which include:
companies
corporate unit trusts
public trading trusts.
The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. Eligibility for the lower company tax rate depends on whether you are a base rate entity from the 2017–18 income year and onwards.
Company tax rates apply to entities which include:
companies
corporate unit trusts
public trading trusts.
The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. Eligibility for the lower company tax rate depends on whether you are a base rate entity from the 2017–18 income year and onwards.
BASE RATE ENTITY COMPANY TAX RATE
BASE RATE ENTITY COMPANY TAX RATE
From the 2021–22 income year onwards, companies that are base rate entities must apply the 25% company tax rate. The rate was previously 27.5% from the 2017–18 to 2019–20 income years and 26% in the 2020–21 income year.
A company is a base rate entity for an income year if:
the company’s aggregated turnover for that income year is less than the aggregated turnover threshold for that income year, and
it has 80% or less of their assessable income in that income year that is base rate entity passive income – this replaces the requirement to be carrying on a business from the 2017–18 income year onwards.
The aggregated turnover threshold is $25 million for the 2017–18 income year and $50 million from the 2018–19 income year.
The aggregated turnover from any prior income year is irrelevant when working out if a company is a base rate entity for any particular income year.
Base rate entity passive income is:
corporate distributions and franking credits on these distributions
royalties and rent
interest income (some exceptions apply)
gains on qualifying securities
a net capital gain
an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income.
For more information on base rate entities, see ATO - Change to company tax rates
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Email us: admin@sinnaccountants.com
Office address: Fletcher NSW 2287
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