Labor is sticking to its Stage 3 income tax cut plans. Here’s what it means for your income…

The plan, which passed into law in 2019 with Labor’s support, will remove the bracket taxing 37 cents of each dollar of earnings between $120,001 and $180,000.

The $180,000 top bracket limit will expand to $200,000. It is this income that will benefit the most.

The changes will also impact the $45,001-$120,000 bracket, taxing 30 cents of every dollar instead of 32.5 cents.

Those earning between $45,000 and $200,000 will face the same 30 cent-per-dollar tax rate on that income.

The changes are set to come into effect from 2024. If you’re unsure how these changes affect you, or you would like to maximise your tax savings in your Financial Plan, contact our Financial Services Team.