What Do The New Income Tax Brackets Mean For You?

From 31 July 2024, the coalition government’s lower income tax brackets will come into effect.

What does this actually mean (in plain English) and what does it mean for you?

Instead of lowering the percentage tax rates that individuals pay, National and the coalition have rather opted to expand the brackets of income that the rates apply to.

In plain English, the expansion of the brackets means that the lower tax rates apply to more of your income, resulting in a lower overall income tax bill for you.

The new personal income tax brackets explained.

What can I expect to save in tax each year?

🙋‍♂️ Here’s what you can expect to save each year if you earn:
$50k = $360
$70k = $800
$100k = $1,043

The savings tap out at an income level of $78,101 (the upper end of the 30% bracket) with a max annual saving of $1,043. So, if you earn anything above this level, your savings will max out at $1,043 per annum.

The old rates and the new rates, visualised.