Proposed Changes to Stage 3 Tax Cuts Announced
CoggerGurry • February 16, 2024
It’s been hard to miss news of the Government’s broken promise on stage 3 tax cuts, legislated to take effect from 1 July 2024. Cost of living pressure has driven the change to redistribute the savings to direct more into the hands of low- and middle-income earners.
For those earning approximately between $40,000 and $145,000 you will be better off under the proposed cuts. An average income earner of $80,000 would receive $1,679 in savings versus the already legislated cuts of $875. The impact on high income earners is more pronounced with earnings above $200,000 will have their tax saving almost halved from $9,075 to $4,529.
If you are concerned about the impact on your position or want to know more contact us a CoggerGurry today.
| What was originally legislated from 1 July 2024 | ||
|---|---|---|
| Taxable Income | Marginal Tax Rate | Tax Amount |
| 0 to $18,200 | Nil | Nil |
| > $18,201 to $45,000 | 19% | 19c for each $1 over $18,200 |
| > $45,001 to $120,000 | 32.50% | $5,092 plus 325c for each $1 over $45,000 |
| > $120,001 to $180,000 | 37% | $29,467 plus 37c for each $1 over $120,000 |
| $180,001 and above | 45% | $51,667 plus 45c for each $1 over $180,000 |
| New Updated Propose Stage 3 Tax Cuts | ||
|---|---|---|
| Taxable Income | Marginal Tax Rate | Tax Amount |
| 0 to $18,200 | Nil | Nil |
| > $18,201 to $45,000 | 16% | 16c for each $1 over $18,200 |
| > $45,001 to $135,000 | 30% | $4,288 plus 30c for each $1 over $45,000 |
| > $135,001 to $190,000 | 37% | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and above | 45% | $51,638 plus 45c for each $1 over $190,000 |
If you've driven past our office recently, you may have noticed some changes underway! We're excited to share that installation of our new Brentnalls Western Victoria signage has commenced. Like many outdoor projects, the recent weather has caused a few delays, but we're looking forward to seeing the finished result once the weather improves! The rebrand represents an exciting new chapter for our firm, while maintaining the same trusted team, local knowledge and commitment to supporting our clients. We think it will be well worth the wait!
Team Fundraiser for The Shaka Project Recently, our team came together for a fundraising morning tea in support of The Shaka Project , an organisation dedicated to promoting positive mental health, wellbeing and meaningful conversations within our communities. It was wonderful to see staff get behind the cause, enjoy some great food, and contribute to an important initiative that aligns closely with our commitment to supporting wellbeing both in and outside the workplace. Thank you to everyone who donated and helped make the morning a success. For more information on The Shaka Project head to their website here 
Over the past few months we've celebrated a number of team birthdays at Brentnalls Western Victoria. A belated happy birthday to Andrew, Chris, Bec, Chloe, Toni, Sam and Michael ("Pechy") ! We hope you each enjoyed celebrating your special day with family and friends. Thank you for everything you do for our clients, our team and our communities. We wish you all the very best for the year ahead.
