1300 328 855


In the 2018 Federal Budget, the then Morrison Government announced a 3 stage programme of changes to personal taxation.

Stage 1 and Stage 2 have previously been delivered and were focussed on providing tax relief to low and middle income earners.

Stage 3 was intended to provide tax reductions for higher income earners.  The legislation to give effect to the Stage 3 tax cuts had previously been enacted and was all set to automatically commence on the 1st of July 2024.

However, in recent times there has been debate about whether the current Albanese Government should roll-back the Stage 3 tax cuts.

With the backdrop of the election campaign promise not to change the Stage 3 tax cuts, there had been much speculation in the lead-up to the Labour Party Caucus meeting on Wednesday the 24th of January.

Following the Caucus meeting, Prime Minister Albanese delivered an address at the National Press Club of Australia on the 25th of January in which he announced intended changes to the tax rates to commence on the 1st of July 2024.

Details of the intended changes can be found in Mr Albanese’s press release.

The following table details the new tax rates announced and provides a comparison to both:

  • the current 2023/24 tax rates; and
  • the Stage 3 tax rates that would have otherwise commenced on the 1st of July 2024.
Current Legislated Rates  (2023/24)
Taxable IncomeTax Rate
Current Legislated Rates (2024/25)
Taxable IncomeTax Rate
New Rates Announced (2024/25)
Taxable IncomeTax Rate

There is no doubt that Mr Albanese and the Labor Government will cop flak over the broken promise. However, there will also be those who believe a change is warranted given the altered circumstances we currently find ourselves in.

As always, we remind readers that the Government must legislate the changes before they can come into effect.  In the meantime, the original Stage 3 rates remain the official tax rates to be applied from the 1st of July 2024.

If you have any questions about the changes announced, please get in touch.

Sky Accountants Ballarat

Phone: 03 5332 8855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 5428 1400

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437