The Stage 3 personal marginal income tax cuts are now legislated and will start 1 July 2024. Everyone with taxable income over $120k should be very excited! Unfortunately those earning less than $45k less so as they will get no cuts.

However for the higher earners, that nasty 47% tax rate will now not kick in until earnings are over $200k, tax on earnings between $120k and $180k will drop by 7% and tax on earnings between $180k and $200k will drop by a whopping 15%. Yippee!!

However the flip side of these tax cuts, is that from 1 July 2024 the tax benefit of making voluntary extra contributions to super diminishes. This makes it even more important to make any extra contributions to utilise the 5 year carry back rules, or to salary sacrifice, before 30 June 2024.

So get organised early, don’t miss the deadline. Remember you can access your contribution history via Mygov. Click here for instructions. Get in touch if you need assistance.

Lindsay 0413 952 180