How the Stage 3 tax cuts affect your take-home pay
What changed on 1 July 2024, and how much extra you'll keep at common income levels.
From 1 July 2024, the revised Stage 3 tax cuts changed the personal income tax brackets. Most workers see a few hundred to a few thousand dollars more in take-home pay over the year.
What changed
- 19% rate cut to 16% (up to $45,000)
- 32.5% rate cut to 30% and extended to $135,000
- 37% threshold lifted from $120k to $135k
- 45% threshold lifted from $180k to $190k
How much extra you'll keep
On a $60,000 salary, the cut delivers about $1,179 a year. On $80,000, it's about $1,679. On $130,000, around $2,679. Higher earners still benefit, but by less than under the original Stage 3 plan.
What it doesn't change
The Medicare levy (2%) and the tax-free threshold ($18,200) stayed the same. HECS/HELP repayment thresholds and rates are reviewed annually but weren't part of the Stage 3 package.
Use the calculator
Plug your salary into our Tax Calculator 2025 to see your updated tax, Medicare levy and net pay. Pair it with the Pay Calculator to break it down into weekly or fortnightly take-home figures.
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Frequently asked questions
When did the Stage 3 cuts start?
1 July 2024, applying to the 2024–25 financial year onwards.
Did everyone get a tax cut?
Yes — the revised plan delivered a tax cut to every taxpayer, with bigger gains for low and middle earners than the original 2018 plan.
What are the new rates?
16% to $45k, 30% to $135k, 37% to $190k, 45% above. Plus the $18,200 tax-free threshold.
Will my employer adjust withholding automatically?
Yes — payroll software updated PAYG tables from 1 July 2024.
Does it affect HELP repayments?
Indirectly — your higher take-home pay doesn't change the HELP threshold but can mean a slightly bigger compulsory repayment if you cross a tier.