The Australian government has unveiled plans in a Media Release to implement tax cuts effective from July 1, aimed at providing relief to taxpayers across the country. These tax adjustments are intended to address cost-of-living concerns and ensure that Australians retain more of their earnings.

Key features of the tax cuts include:

• Reduction of the 19% tax rate to 16% for incomes between $18,200 and $45,000.
• Reduction of the 32.5% tax rate to 30% for incomes between $45,000 and the new $135,000 threshold.
• Increase of the threshold for the 37% tax rate from $120,000 to $135,000.
• Increase of the threshold for the 45% tax rate from $180,000 to $190,000.

The tax cuts are projected to provide substantial relief, with an average income earner receiving a $1,504 tax cut, $804 more than under previous plans. Those earning $40,000 will receive a $654 tax cut, compared to none under previous plans, while those earning $100,000 will receive a $2,179 tax cut.

The government emphasizes that these tax cuts are designed to be fiscally responsible, supporting economic growth, and addressing the needs of Australian taxpayers.

Find out how much you will save from the tax cuts: Tax Cut Calculator