Question 1

What are the Stage 3 tax cuts?

Accepted Answer

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.

Question 2

How much will I save from the tax cuts?

Accepted Answer

Savings depend on your income. Someone earning $50,000 saves around $929 per year. At $100,000, savings are approximately $2,179. At $200,000, savings are approximately $4,529 per year.

Question 3

When did the Stage 3 tax cuts start?

Accepted Answer

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.

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