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Federal Budget 2022-23 | October: Personal income tax 
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Federal Budget 2022-23 | October: Personal income tax 

As expected, the Federal Government is proceeding with the previous government’s personal income tax changes, which include the Stage 3 tax cuts and cessation of the Low and Middle Income Tax Offset.

Medicare Levy, Medicare Levy Surcharge and Personal Tax Rates

There have been no changes announced to the Medicare levy and surcharge thresholds. Further, there have been no changes to the personal income tax rates for the 2022-23 income year or for subsequent years. This means that:  

  • The 2021–22 income year will be the last year that the Low and Middle Income Tax Offset (LMITO) is available.   
  • Personal income tax rate reductions will be applied for income years commencing 1 July 2024 and onwards.   

The proposed tax rates for resident individuals from previous budgets are contained in the following tables (excluding Medicare levy).


2022–23 and 2023–24

Taxable income

Tax on this income

$0 – $18,200

Nil

$18,201 – $45,000

19 cents for each $1 over $18,200

$45,001 – $120,000

$5,092 plus 32.5 cents for each $1 over $45,000

$120,001 – $180,000

$29,467 plus 37 cents for each $1 over $120,000

$180,001 and over

$51,667 plus 45 cents for each $1 over $180,000


Proposed changes for 2024–25

Taxable income

Tax on this income

$0 – $18,200

Nil

$18,201 – $45,000

19 cents for each $1 over $18,200

$45,001 – $200,000

$5,092 plus 30 cents for each $1 over $45,000

$200,001 and over

$51,592 plus 45 cents for each $1 over $200,000

This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content. Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.
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Nigel Fischer

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