Government Announces Changes to Proposed ‘Stage 3’ Tax Cuts
Despite previous assurances, the Government has unveiled tweaks to the ‘Stage 3’ tax cuts set to take effect from July 1, 2024. Notably, the proposed changes include:
– Reducing the 19% tax rate to 16%, adjusting the 32.5% rate to 30% for incomes between $45,000
– A new $135,000 threshold, increasing the threshold for the 37% rate from $120,000 to $135,000
– Raising the threshold for the 45% rate from $180,000 to $190,000. The Medicare levy low-income thresholds for the 2024 income year will also see an increase.
New ATO Guidance on “Who is an Employee?
The ATO has issued a ruling clarifying the classification of individuals as ’employees’ for PAYG withholding purposes. The ruling emphasises the importance of considering whether a worker is operating within the business of the engaging entity, regardless of the worker’s independent business status or possession of an ABN.
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