Tax Rates 2023-2024 Year (Residents)

The 2023 financial year starts on 1 July 2023 and ends on 30 June 2024. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.

The 2018 Budget announced a number of adjustments to the personal tax rates taking effect in the tax years from 1 July 2018 through to 1 July 2024. The legislation is here.

Reflected in the following table, tax rates for the 2 years from 1 July 2022 to 30 June 2024 include the expansion of 19% rate to $41,000 and lifting the 32.5% ceiling to $120,000.

A subsequent Budget 2019 announcement by the Treasurer further expands the 19% income ceiling to $45,000 from 1 July 2022. Subject to legislation being passed, the amended tax scale for 2022-23 would be as follows:

2022-23 Tax Scale (subject to legislation)

Taxable IncomeTax On This Income
 0 to $18,200Nil
$18,201 to $45,00019c for each $1 over $18,200
 $45,001 to $120,000$5,092 plus 32.5c for each $1 over $45,000
 $120,001 to $180,000 $29,467 plus 37c for each $1 over $120,000
 $180,001 and over $ 51,667 plus 45c for each $1 over $180,000

 

Tax scale 2022-23 and 2023-24 (as currently legislated)

Taxable IncomeTax On This Income 2022-23 and 2023-24
 0 to $18,200 Nil
 $18,201 to $41,000 19c for each $1 over $18,200
 $41,001 to $120,000 $4,332 plus 32.5c for each $1 over $41,000
 $120,001 to $180,000 $30,007 plus 37c for each $1 over $120,000
 $180,001 and over $52,200 plus 45c for each $1 over $180,000

 

The above tables do not include Medicare Levy or the effect of any Low Income or Low and Middle Income tax offsets. Medicare Levy is applied on a progressive basis if eligible private health insurance cover is not maintained. There are low income and other full or partial Medicare exemptions available. A Medicare Levy Surcharge may also be applicable.

Entitlement to the low and middle income tax offset

Under Budget 2018 proposals from 1 July 2022 a new low income offset of up to $645 will replace LITO and LMITO. See details here. Subsequent Budget 2019 proposals increased the value of the new offset to $700 (up from $645)  – subject to passage of legislation.

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This page was last modified 2019-04-02