5 Tax and Structures
Federal Budget 2023 Proposals
The 2023 Federal Budget has proposed the following:
1. There were no changes to existing personal income tax rates for the 2023/24 financial year. Under stage 3 of the proposed tax cuts, revised marginal tax rates will apply from 1 July 2024 as follows:
| Taxable income | Tax payable |
| Up to $18,200 | Nil |
| $18,201 - $45,000 | Nil plus 19% |
| $45,001 - $200,000 | $5,092 plus 30% |
| Above $200,000 | $51,592 plus 45% |
2. Small and medium businesses that undertake expenditure that supports “electrification” and measures for the more efficient use of energy will receive an additional 20 per cent bonus tax deduction
3. The Medicare levy low-income thresholds will increase from 1 July 2022:
- The threshold for singles will be increased to $24,276.
- The family threshold will be increased to $40,939.
- For single seniors and pensioners, the threshold will be increased to $38,365.
- The family threshold for seniors and pensioners will be increased to $53,406.
For each dependent child or student, the family income thresholds will be increased from $3,619 to $3,760.
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