Stage 3 Tax Cut Calculator

The Stage 3 tax cuts took effect from 1 July 2024. They reduced the 19% rate to 16%, reduced the 32.5% rate to 30%, raised the $120,000 threshold to $135,000, and raised the $180,000 threshold to $190,000. Every taxpayer earning above $18,200 benefits.

Savings depend on your income. Compared with the 2023-24 rates, someone earning $50,000 saves around $1,197 per year in 2026-27. At $100,000, savings are approximately $2,447. At $200,000, savings are approximately $4,797 per year. These figures include the extra cut from 16% to 15% that started on 1 July 2026.

The revised Stage 3 tax cuts came into effect on 1 July 2024, applying to the 2024-25 financial year onwards. They were originally legislated in 2019 but were revised in January 2024 to benefit a broader range of taxpayers.

From the 2026-27 financial year, the rate on income between $18,201 and $45,000 dropped from 16% to 15%. Anyone earning over $45,000 saves $268 a year compared with 2025-26, and people earning between $18,201 and $45,000 save 1% of their income above $18,200. The other brackets did not change.