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Budget 2024 | The Government has confirmed changes and provided more information on FamilyBoost. Find out more: FamilyBoost

Budget 2024 | The Government has confirmed changes to personal income tax, the independent earner tax credit, in-work tax credit, and the minimum family tax credit. Find out more: Personal income tax threshold changes

Changes have been made to provide tax relief for individuals and families. These changes, announced on 30 May, are part of the annual Government Budget 2024.

Changes from 31 July include:

  • increasing personal income tax thresholds
  • extending the independent earner tax credit
  • increasing in-work tax credit and the minimum family tax credit.

Up until 31 July, you can use the Treasury calculator to estimate how your household income might change.

Tax calculator - Budget 2024

Budget - 2024

If you're paid salary or wages

In most cases you won't have to do anything. Your employer will adjust your pay. If they don't have everything set up by 31 July, you'll get the extra money either in a later pay or after our end of the year 'square-up process'.

What happens at the end of the tax year

What the changes mean for you

Personal income tax thresholds now and from 31 July 2024
Current threshold New threshold 31 July 2024 Tax rate
$0-$14,000 $0-$15,600 10.5%
$14,001-$48,000 $15,601-$53,500 17.5%
$48,001-$70,000 $53,501-$78,100 30%
$70,001-$180,000 $78,101-$180,000 33%
$180,001 upwards $180,001 upwards, no change 39%
Independent earner tax credit now and from 31 July 2024
Current threshold New threshold 31 July 2024 Your entitlement
$24,000-$44,000 $24,000-$66,000 $10 a week or $520 a year
$44,001-$48,000 $66,001-$70,000 The payment reduces by 0.13 cents for every dollar you earn 

Changes to personal income tax thresholds may affect other types of tax you pay

Secondary tax codes

If you use a secondary tax code, you should check if your yearly PAYE income payments will be in the new threshold. When the new rates apply from 31 July, you may need to change your tax code by completing an IR330 form. Give this form to your secondary income payer.

Resident withholding tax (RWT)

If you have investment income, the RWT rate won't automatically update at your bank or where you have money invested. If after 31 July your rate is wrong, you'll need to let them know which RWT rate to change you to.

Provisional tax

If you pay provisional tax you and/or your tax agent can review your situation and talk about whether you need to estimate or re-estimate.

Tailored tax codes

If you use a tailored tax code we'll recalulate it and send you and your employer a new certificate.

Working for Families payments change on 31 July 2024

Minimum family tax credit (MFTC)

The yearly after-tax income to get MFTC increases from $35,204, ($677 a week) to $35,316, ($679 a week).

In-work tax credit (IWTC)

The base rate for the IWTC increases from $3,770, ($72 a week) to $5070, ($97 a week).

The new rate will update automatically and create a new entitlement period. If you're eligible, you'll get a Notice of Entitlement in either myIR or the post.

Paid parental leave (PPL)

The new tax thresholds will update automatically. You'll get a new Notice of Entitlement in either myIR or in the post.

Changes for employers

If you use payroll software, your provider should give you an update with the new rates when they have it ready. We’ll give software providers the new payroll specifications before 31 July 2024.

If you file manually or don’t use a software provider, make sure you use the new tax tables in your calculations.

Last updated: 05 Jun 2024
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