Personal Income Tax Rates and Independent Earner Tax Credit (IETC) eligibility changes
Personal Income Tax Rates and Independent Earner Tax Credit (IETC) eligibility changes from 31 July 2024
Prior to 31/07/2024 the Personal Income Tax Rates;
From $0 to $14,000 10.50%
From $14,000 to $48,000 17.50%
From $48,000 to $70,000 30%
From $70,000 to $18,000 33%
From $180,000 to over 39%
From 31/07/2024, the new personal tax rate changes;
From $0 to $15,600 10.50%
From $15,600 to $53,500 17.50%
From $53,500 to $78,100 30%
From $78,100 to $18,000 33%
From $180,000 to over 39%
Example 1.
Anna’s taxable income is $70,000, and prior to 31/07/24, her tax on $70,000 was;
From $0 to $14,000 10.50% $1,470
From $14,000 to $48,000 17.50% $5,950
From $48,000 to $70,000 30% $6,600
Total tax to pay $14,020
However, after 31/07/24 her tax liability will be reduced to
From $0 to $15,600 10.50% $1,638
From $15,600 to $53,500 17.50% $6,632.50
From $53,500 to $70,000 30% $4,950
Total tax to pay $13,220.50
Better off $799.50
From 31 July 2024, the IETC will be available to eligible individuals earning between $24,000 and $70,000 per annum.
The IETC is a tax credit of up to $20 per fortnight that is currently available to those earning between $24,000 and $48,000 per annum. Those eligible can receive the IETC during the year by using an appropriate tax code, or get it all at the end of the year.
To recognise the impact of wage growth, the upper limit of eligibility for the IETC is being extended from $48,000 to $70,000 per annum. Those earning $24,000 to $66,000 per annum receive the full credit, with entitlements gradually reducing as income increases, up to the limit of $70,000
For further assistance, please feel free to contact us.
The information contained within this website is provided for information purposes only and is not intended to substitute for obtaining accounting tax or financial advice from a professional accountant.
