Unpacking the Benefits of Stage Three Tax Cuts
As we enter the new financial year, it’s important to understand how the stage three tax cuts will affect your financial landscape. Here, we explore a detailed comparison of the tax payable differences between the 2023/2025 and the 2024/2025 financial year for three distinct income levels.
| Gross Income | Income Tax
(2023 – 2024) |
Income Tax
(2024 – 2024) |
Tax Cut |
| $75,000 | $16,342 | $14,788 | $1,554 |
| $120,000 | $31,867 | $29,188 | $2,679 |
| $250,000 | $88,167 | $83,638 | $4,529 |
*Does Not Include Medicare Levy
Key Takeaways
- Tax Savings Across the Board: In all three income brackets, taxpayers will benefit from reduced tax payable in the next financial year due to stage three tax cuts. Greater Savings for Higher Incomes
- Individuals with higher incomes, such as those earning $120,000 or $250,000, will see more significant tax savings compared to those with lower incomes.
Strategic Financial Actions
- Accelerate Mortgage Payments: Consider using the additional funds from your tax savings to make extra payments on your mortgage. This can reduce your interest costs significantly over time and bring you closer to being mortgage-free.
- Commence a Savings Plan – With the extra cash flow, starting a savings plan for future goals or investment can be a smart move. Whether it’s building an emergency fund or saving for a major purchase, the additional money can provide a solid foundation.
The stage three tax cuts are more than just immediate relief; they’re an opportunity to re-evaluate and enhance your financial strategy. To fully capitalise on these tax savings, consulting with a financial adviser can provide tailored advice that aligns with your personal financial goals and circumstances.
Don’t miss out on the potential benefits—speak to an adviser from Enhance Financial Partners to explore what these tax changes could mean for you and how best to utilise the newfound funds to Enhance your Financial Future.
The information in this document is general information only and is not based on the objectives, financial situation or needs of any particular investor. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek their own professional advice. Past performance is not a reliable indicator of future performance. The information provided in the document is current as the time of publication. We encourage you to speak to one of our Registered Tax Agents or Financial Advisers today.
