Question 1

What are the Australian income tax rates and brackets for 2024-25?

Accepted Answer

For the 202425 financial year (1 July 2024 to 30 June 2025), Australian resident individual income tax rates are as follows:

Taxable Income  Tax Rate

A$0  A$18,200  0% (taxfree threshold) 
 A$18,201  A$45,000  16 cents per dollar over A$18,200 
 A$45,001  A$135,000  A$4,288 plus 30 cents per dollar over A$45,000 
 A$135,001  A$190,000  A$31,288 plus 37 cents per dollar over A$135,000 
 A$190,001 and over  A$51,638 plus 45 cents per dollar over A$190,000

These rates reflect the Stage 3 tax

Question 2

What is the tax-free threshold and do I need to lodge a tax return in Australia?

Accepted Answer

The taxfree threshold for Australian residents is A$18,200 for the 202425 financial year. This means if your total taxable income is A$18,200 or less, you pay no income tax. When you start a new job, you claim this threshold on your Tax File Number (TFN) declaration form. You can only claim it from one employer.

Do you need to lodge a tax return?

You must lodge a tax return if any of the following apply:

You had tax withheld from any payments made to you
 Your taxable income was above the ta

Question 3

What are the HECS-HELP repayment thresholds and rates for 2024-25?

Accepted Answer

If you have a HECSHELP, VSL, or other study or training support loan, compulsory repayments are calculated based on your repayment income (taxable income plus any net rental losses, fringe benefits, and other adjustments). For the 202425 financial year, the minimum repayment threshold is A$54,435.

Below are the key repayment tiers:

Repayment Income  Repayment Rate

Below A$54,435  No repayment required 
 A$54,435  A$62,850  1.0% 
 A$62,851  A$66,620  2.0% 
 A$66,621  A$70,618  2.5% 
 A$70,6

Question 4

What tax offsets are available for low and middle income earners in 2024-25?

Accepted Answer

For the 202425 financial year, the main tax offset available for lower income earners is the Low Income Tax Offset (LITO). The Low and Middle Income Tax Offset (LMITO) ended after the 202122 financial year and is no longer available.

Low Income Tax Offset (LITO):

The LITO provides a tax reduction of up to A$700 for individuals with a taxable income of A$37,500 or less. It phases out as follows:

Taxable Income  Offset Amount

A$0  A$37,500  A$700 
 A$37,501  A$45,000  A$700 minus 5 cents pe

Categories

Income Tax

What are the Australian income tax rates and brackets for 2024-25?

What is the tax-free threshold and do I need to lodge a tax return in Australia?

What are the HECS-HELP repayment thresholds and rates for 2024-25?

What tax offsets are available for low and middle income earners in 2024-25?