Life Admin Hub  ›  Tax  ›  What does the Budget mean to your tax?

What does the Budget mean to your tax?

The good news is that if you earn over $45,000, you’re going to get a pay rise from 1 July 2024 in your tax return! How much, depends on how much you earn.

The tax rate between $0 – $18,200 has dropped 3% from 19% to 16%.

The tax rate between $45,000 and $120,00 has dropped 2.5% from 32.5% to 30%.

The tax rate between $120,000 and $180,000 has dropped 7% from 37% to 30%.

The tax rate between $180,000 and $200,000 has dropped 15% from 45% to 30%.

That’s over $9k back in your pocket in tax savings if you earn $200,000.

Importantly though, a lot of Aussies benefit from these tax reductions. The largest percentage of Aussies earn between $45,000 and $200,000.  

We didn’t see any change to the tax-free threshold in this budget, but let’s hope there are more changes to come for low-income earners. These tax cuts were part of the previous Government’s personal income tax reform which has the benefit of both simplifying the tax thresholds in Australia and reducing tax payable by middle Australia.

Resident tax rates and threshold

Current From 1 July 2023From 1 July 2024 
Taxable incomeTax payableTaxable incomeTax payable
$0 – $18,200Nil$0 – $18,200Nil
$18,201 – $45,00019%$18,201 – $45,00016%
$45,001 – $120,000$5,092 + 32.5%$45,001 – $200,000$5,092 + 30%
$120,001 – $180,000$29,467 + 37%Income band removed
$180,001+$51,667 + 45%$200,001+$51,592 + 45%

Tax thresholds have always been a part of the tax system in Australia. There has been talk for years about simplifying how the tax thresholds work and this change is a big step in that direction.

The tax free threshold remains at $18,200 from 1 July 2024 with the first band of 19% remaining in place for those earning up to $45,000. Although there was no support in this budget with an increase to the tax free threshold or the first tax backet, its not an election year, so maybe that is to come in future budgets.

For now at least it is getting easier to work out how much you’re getting taxed.

Need help with your tax?

If you’re needing some help to lodge your tax return or need advice from a tax agent, you should let us help you. We deal with tens of thousands of Tax Returns every year, most of which use One Click Life to lodge their tax return directly with the ATO, but a lot of which need some sort of advice or help in one way or another. 

Let us help you so you can claim the biggest tax refund that you can.

You can also claim your tax agent/tax return fees back on tax (this includes One Click Life!), so why wouldn’t you let us help you minimise your tax and maximise your money?

One Click Life offers online Tax Returns at your fingertips in an easy-to-use platform run by industry professionals. Our Tax Returns can take less than 5 minutes!

Taxes, Health Insurance, and Wills can be time-consuming and tedious. Our app allows you to be able to do this fuss-free, giving you a simple way to organise, track and manage all of your life admin in one place. The easiest tax return in Australia!

Let One Click Life take care of your Tax Return and life’s essential tasks, so you can spend more time doing the things you love.