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The Government has confirmed the revised stage three personal tax cuts that were announced prior to the Federal Budget being handed down and which have already been enacted into law.

Stage 3 Tax Cuts

From the 2025 income year the following tax brackets have their tax rate lowered:

  • $18,201 – $45,000 will have the tax rate lowered from 19% to 16%
  • $45,001 – $135,000 will have the tax rate lowered from 32.5% to 30%

Freezing social security deeming rates

The Government will freeze social security deeming rates at their current levels for a further 12 months until 30 June 2025 to support age pensioners and other income support recipients who rely on income from deemed financial investments, as well as their payment, to manage cost of living pressures.

Energy Bill Relief

From 1 July 2024, all households will receive a total rebate of $300, which will be automatically applied to their electricity bills in quarterly instalments.

Increased Medicare Levy

The Government has increased the Medicare levy low-income threshold amounts and phase-in ranges for singles, families and seniors and pensioners that apply from 1 July 2023.

Tertiary education system reforms

The Government will provide funding to implement the first stage of reforms to Australia’s tertiary education system. Of note, this includes funding:

  • to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation; and
  • to establish a new ‘Commonwealth Prac Payment’ of $319.50 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies. This will help alleviate the significant financial impact of mandatory placements and increase retention in courses for careers in sectors experiencing shortages.