Changes to personal income tax (PIT) thresholds
From 31 July 2024, income tax thresholds will increase.
Increasing PIT thresholds reduces income tax for people receiving over $14,000 of income per annum. The current thresholds have been the same since 2010 (apart from a new top threshold which took effect in 2021). As wages have grown over time, people have paid more of their incomes in tax. Increasing the income tax thresholds goes some way towards addressing this.
| Current brackets $ | New brackets $ | 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+ | No change | 39% |