Your income tax bracket determines how much tax you owe each financial year. Understanding the latest tax rates and thresholds can help you plan better and ensure you’re meeting your tax obligations effectively.
Australian Individual Tax Rates (2024–25)
| Taxable Income | Tax Rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
📌 Note: The above rates do not include the Medicare levy of 2%.
What This Means for You
✔️ Your total tax payable depends on your taxable income. The more you earn, the more tax you pay, but only on the portion of income that falls within each bracket.
✔️ If your income is near a threshold, consider tax planning strategies—such as super contributions, deductions, and investment planning—to legally reduce your taxable income.
✔️ PAYG Tax Withholding: If you’re an employee, your employer withholds PAYG tax from your wages. If you’re self-employed or earning other income, you may need to make direct tax payments to the Australian Taxation Office (ATO).
Maximise Your Tax Planning Strategy
Proactive tax planning can help you reduce liabilities and ensure compliance. Here are some steps to take:
- Claim all eligible deductions to reduce taxable income.
- Plan for PAYG instalments if you earn income outside of employment.
- Ensure accurate record-keeping for tax-time efficiency.
💡 Need help understanding your tax obligations or maximising deductions? Our team at Fluid Business Advisory can help you stay compliant while optimising your tax position. Get in touch today!
