Tax Rates 2024-2025 Year (Residents)

The 2025 financial year starts on 1 July 2024 and ends on 30 June 2025. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.

Taxable IncomeTax On This Income
 0 to $18,200Nil
$18,201 to $45,00016c for each $1 over $18,200
$45,000 to $135,000$4,288 plus 30c for each $1 over $45,000
$135,000 to $190,000$31,288 plus 37% for each $1 over $135,000
 over $190,000$51,638 plus 45% for each $1 over $190,000
Free 2025 Calculator Compare 2024 & 2025 years (Calculator)

Chart illustrating tax savings by comparing 2024-25 Stage 3 tax rates with 2023-24 rates across different income levels, up to $250,000

The 2023-24 Medicare Levy exemption levels are also being lifted as announced. The individual exemption threshold moves to $26,000.

Legislation links:

See further: Prime Minister’s Media release 25 Jan 2024 and Albanese Government’s cost-of-living tax cuts to roll out from July 1

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.

As a result, current legislation provides marginal tax rate changes which take effect from 1 July 2024 – the so-called “stage 3” tax cuts. (see calculator table below).

Stage 3 Tax Cuts Adjusted

27 February 2024

The parliament has approved amendments to reduce the benefit of the original stage tax 3 cuts for higher income earners, and improve the tax scale for lower income earners.

The changes are applicable from 1 July 2024 and are reflected in the tax tables on this page.

The tax scale was amended to:

  1. reduce the 19% rate to 16% on incomes up to $45,000
  2. reinsert a 37% rate on incomes between $135,000 and $190,000 (previously 30%)
  3. bring the top rate of 45% to apply from over $190,000 (instead of $200,000)

See further: Prime Minister’s Media release 25 Jan 2024

The Medicare Levy exemption levels (for 2023-24) are also lifted. The individual exemption threshold moves to $26,000.

The modified stage 3 tax cuts as set out above are subject to the passage of legislation.

The original stage 3 tax cuts were the subject of criticism because of the disproportionate benefit flowing to higher income earners, notwithstanding that the tax scale adjustments initiated from the 2018 year had provided reductions for lower and middle income earners. A Budget 2019 measure reduced the 32.5% rate to 30% from 1 July 2024 and increased the 19% income ceiling to $45,000 from 1 July 2022. Legislation is here.

An illustration of this is evident when comparing tax on $50,000 which shows an increase of $1,500 ($6,467 minus $4,967) in the 2023 year due to the loss of the temporary Lower & Middle Income Offset.

This increase is reduced by $125 in 2025 due to a small tax scale change. However in the same year 2025, higher income earners’ tax on $200,000 goes down by $9,075 ($51,592 minus $60,667).

Original’ Stage 3 Tax Cuts Tax Scale 2024-25 

Taxable IncomeTax On This Income
 0 to $18,200Nil
$18,201 to $45,00019c for each $1 over $18,200
 $45,001 to $200,000$5,092 plus 30% for each $1 over $45,000
 $200,001 and over $51,592 plus 45c for each $1 over $200,000

The above tables do not include Medicare Levy or the effect of any Low Income or Low and Middle Income tax offsets.

There are low income and other full or partial Medicare exemptions available. A Medicare Levy Surcharge may also be applicable and is applied on a progressive basis if eligible private health insurance cover is not maintained.

Entitlement to the low and middle income tax offset

Under Budget 2018 proposals a new low income offset of up to $645 was to replace LITO and LMITO. Subsequent 2019 and 2020 measures increased the value to $700 and brought it forward to apply from the 2021 year. See details here.

2025 Tax Calculator

2025 Tax Calculator (Stage 3 Tax Cuts updated)

Tax thereon: $0
Medicare Levy: $0
LITO: $0
Tax Paid: $0
Tax Payable: $0

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* Calculator Notes: Calculations are estimates based on currently legislated tax rates applying to a future period and could change before then in accordance with changes in government policy. Rounding errors may be present in the calculated results. Medicare: For the purposes of estimation the calculator assumes a Medicare exemption up to the inflation-adjusted single income earner exemption threshold for 2023-24 which is $26,000. The Medicare percentage selection box is included should you wish to adjust the calculated Medicare percentage at higher levels of income. The current Medicare income exemption levels can be reviewed here. LITO: The full value of LITO on lower levels of income is $700, however it is not refundable, and so the actual credit is limited to the amount of tax payable on lower levels of income. See LITO info here.

Higher Tax Rates For Some Super Funds (from next year)

The Treasurer has announced that from 1 July 2025 the tax rate applied to future earnings of funds in the accumulation phase with balances above $3 million will be increased to 30% (replacing the existing 15% rate).

The 30% tax rate will not be retrospective and is intended to apply only to relevant earnings from the 2025-26 year onwards from fund assets above $3 million in value. As the proposal currently stands, the value includes unrealised gains.

See: Treasurer’s media release Feb 28, 2023 and Fact Sheet

See also: The new 15% tax on $3M+ member total super balances from 1 July 2025 –– a tax analysis

Increased Superannuation Caps

Super contribution caps have been increased with indexation to apply from 1 July 2024. The concessional cap becomes $30,000 and other caps have been adjusted accordingly.

See further: Superannuation contribution caps

Super Guarantee Up From 1 July 2024

As schedules, the super guarantee percentage increases from 11% to11.5% for wages and salaries paid from 1 July 2024.

(Note: the percentage rate will increase again from 1 July 2025 to 12%.)

Maximum wage limits have also been increased by indexation.

See further: Super Guarantee

Car Depreciation & Luxury Tax Limits Increased

The car depreciation claim limit has been increased by indexation being $69,674 from 1 July 2025. See Car Depreciation Cost Limit.

The luxury car tax threshold for 2024-25 is $91,387 for dule efficient vehicles and $80,644 for other vehicles. See Luxury Tax On Cars.

Cents Per Km Increase For 2024-25

Draft only at this stage, the ATO-accepted cents per km claim rate for 2024-25 is set at 88 cents, up by 3 cents from the previous year. More information at ATO Cents Per Kilometre Car Expenses.

Foreign Investors

Measures which were included the MYEFO 2023 statement from the Treasurer on December 13, 2023 take effect during the 2024-25 year, including:

Lump Sum Payments In Arrears To Be Excluded From Medicare Levy

Note: A proposed amendment set forth in the 2023 Federal Budget excludes eligible lump sum payments in arrears from the Medicare levy from 1 July 2024.

Drafts of the new measures have been published.

Announced measures are subject to the passage of legislation.

This page was last modified 2024-05-08