In a recent interview, Damien Patterson, CEO of Integrity Property Investment, shared his thoughts on the Government’s newly announced tax cuts set to benefit all 13.6 million Australian taxpayers from 1 July 2024. This initiative aims to alleviate cost-of-living pressures, address bracket creep, support women, and enhance labour supply.
Easing Cost-of-Living Pressures
From 1 July 2024, the Government will:
- Reduce the 19 per cent tax rate to 16 per cent.
- Reduce the 32.5 per cent tax rate to 30 per cent.
- Increase the income threshold above which the 37 per cent tax rate applies from $120,000 to $135,000.
- Increase the income threshold above which the 45 per cent tax rate applies from $180,000 to $190,000.
Daimien commented, “These tax cuts are a significant step towards easing the financial burdens faced by many Australians. By allowing individuals to keep more of what they earn, the Government is providing substantial relief to middle Australia without fueling inflation.”
Addressing Bracket Creep
Daimien highlighted the importance of addressing bracket creep, stating, “The Government’s decision to return bracket creep and lower average tax rates for all taxpayers is crucial. This move ensures greater protection for low- to middle-income earners and maintains the progressivity of our tax system.”
Empowering Women and Boosting Labour Supply
The tax cuts are projected to increase the labour supply by 930,000 hours per week, equivalent to around 25,000 full-time jobs. Daimien Patterson emphasised, “This increase is particularly driven by women and individuals in the low- to middle-income range, especially those earning between $25,000 and $75,000. All 6.5 million women taxpayers will receive a tax cut in 2024–25, with an average benefit of around $1,650. This will not only enhance their financial returns but also support greater workforce participation.”
A Positive Outlook
Daimein concluded, “Integrity Property Investment fully supports these tax reforms. They represent a responsible approach to providing cost-of-living relief, promoting economic growth, and ensuring a fairer tax system for all Australians.”
Daimien Patterson
Integrity Property Investment
+61 1300 372 677