Australia Stage 3 Tax Cut Savings Calculator
From 1 July 2024 the revised (Albanese) Stage 3 tax cuts started. Calculate how much extra take-home pay you receive vs the pre-cut brackets — the cuts skew toward lower- and middle-income workers compared to the original 2018 Stage 3 design.
| Old (pre-July 2024) tax | — |
| New (Stage 3 revised) tax | — |
| Tax saving / year | — |
| Tax saving / fortnight | — |
| Effective rate change | — |
The revised Stage 3 tax cuts took effect from 1 July 2024 — replacing the original 2018 design. The new cuts reduce the entry rate (19% to 16%), reduce the middle bracket (32.5% to 30%), raise the 37% threshold to A$135,000, and the 45% threshold to A$190,000. Most workers see savings of A$350–A$4,500/year.
Stage 3 Tax Brackets — Old vs New
Pre-1 July 2024: 0% to $18,200 / 19% to $45K / 32.5% to $120K / 37% to $180K / 45% above. From 1 July 2024 (revised Stage 3): 0% to $18,200 / 16% to $45K / 30% to $135K / 37% to $190K / 45% above. Both Medicare Levy and Medicare Levy Surcharge remain unchanged.
Who Benefits Most
Workers earning A$45K–A$135K see proportionally bigger cuts under the revised version vs the original 2018 design. A worker on A$80K saves about A$1,679/year; A$100K saves A$2,179; A$200K saves A$4,529. Below A$45K, savings come from the rate cut to 16%.
Net Pay Impact
Most employees see the cut automatically through reduced PAYG withholding from each pay. Self-employed workers see the impact at tax time when their 2025 return is lodged. Use this calculator to confirm your withholding is correct — under-withholding is common in the first months of a tax-rate change.
Last updated May 2026. Sources: ATO Individual Income Tax Rates, Treasury Stage 3 Explanatory Memorandum.