Tax Cuts from July2024: Using Improved Cash Flow for Financial Goals

Published 4 July 2024 by Mary Nebotakis, Managing Director, Natloans (B. Eco, Dip. Financial Services). Last page update noted 3 September 2025. The tax-cut details below reflect the Australian Government's announced changes as they stood at the original publication date. Tax rules, thresholds and individual circumstances change — confirm current figures with the Australian Taxation Office (ATO) or a qualified adviser before making financial decisions.

Overview: Australian Tax Changes From 1 July 2024

The article discusses income-tax changes beginning on 1 July 2024. Its 13.6 million taxpayer figure matches the Government’s May2024 Budget announcement; it is a dated estimate, not a current taxpayer count or a promise that every Australian receives an identical amount. The resident marginal-rate changes should not be applied indiscriminately to foreign residents, working holiday makers or special tax categories.

For most employees the changes were intended to flow through PAYG withholding and take-home pay. Withholding is a credit towards the eventual tax assessment, not a second tax-cut payment. The tax return reconciles actual liability and credits; it can result in a refund or an amount payable, rather than a guaranteed extra refund.

The Announced Rate and Threshold Changes (as at 1 July 2024)

The original four changes below agree with the historical resident settings shown in Treasury’s comparison of 2023–24 with 2024–25 and 2025–26. The table is historical, not the current-year rate schedule. A marginal rate applies only to the slice of taxable income within its band, not the person’s entire income.

Change Type	Before (as published)	After 1 July 2024 (as published)
Lower marginal tax rate	19%	16%
Mid marginal tax rate	32.5%	30%
37% rate threshold	$120,000	$135,000
45% rate threshold	$180,000	$190,000

The ATO explanatory material for the 2024 legislation gives the 2024–25 resident bands: tax-free through $18,200; 16% above $18,200 through $45,000; 30% above $45,000 through $135,000; 37% above $135,000 through $190,000; and 45% above $190,000. This describes ordinary resident income-tax bands before considering offsets, Medicare levy and individual adjustments.

How Increased Take-Home Pay Can Support Financial Goals

The article encourages using any increase in take-home pay for financial goals. First check the actual payslip and budget: the change depends on taxable income, withholding and individual circumstances. A lower statutory tax rate does not by itself determine a lender’s borrowing-capacity assessment.

Common ways people consider applying additional cash flow include:

• Building or topping up a savings deposit for a property purchase
• Making additional repayments on an existing loan to reduce interest over time
• Redirecting funds toward an investment goal
• Reviewing and potentially refinancing existing debt while serviceability may have improved

The right approach depends on individual circumstances, existing commitments and financial objectives. Natloans recommends speaking with a finance professional to assess which option suits your situation.

How Natloans Can Help You Make the Most of This

Natloans is a finance brokerage. The article outlined three areas where the team can assist clients looking to act on improved cash flow:

Personalised Advice

The original article offers personalised help applying tax savings to financial goals. Natloans can discuss finance and loan options in that context. The source does not establish tax-agent registration or the scope of tax-advice authorisation; confirm who will provide any tax-specific advice and use a suitably qualified registered adviser.

Range of Finance Solutions

The article references a broad range of finance solutions, including home purchases, asset finance, refinancing and investment lending. The specific products, lenders and terms available to any individual depend on their circumstances and the current lending environment — contact Natloans directly for details applicable to you.

Ongoing Support and Updates

Natloans indicated a commitment to keeping clients informed as further changes occur and to helping them understand the impact on their financial situation over time.

Important Context: This Article Is General Information

This article was published on 4 July 2024 as general information in the context of the then-announced tax changes. It is not a current quote, eligibility assessment or guarantee of any outcome. Tax legislation, lender policies and individual eligibility criteria change. Nothing in this article constitutes financial, tax or legal advice. Before making any financial decision based on tax changes, you should:

• Confirm current tax rates and thresholds directly with the ATO or a registered tax agent
• Discuss your specific borrowing capacity and loan options with a qualified finance broker
• Consider your complete financial position, including existing debts and obligations

Questions and Answers

What does this Natloans article discuss?

The article discusses the Australian Government's announced income tax changes effective 1 July 2024 and outlines how Natloans, as a finance brokerage, may be able to help clients use improved cash flow to work toward financial goals. It is general information published in that dated context.
Source: natloans.com.au — Tax Cuts Are Here (published 4 July 2024)

Is this article a current quote or eligibility assessment?

No. The article was published on 4 July 2024 and records general information as it stood at that time. It does not constitute a finance approval, eligibility determination or guarantee of any result. Confirm current costs, conditions and eligibility for your circumstances with Natloans or a qualified adviser before relying on any figures.
Source: natloans.com.au — Tax Cuts Are Here (published 4 July 2024)

Which taxpayers did the announced changes apply to?

The 13.6 million figure was a Government estimate for the 2024 changes, echoed by Natloans. It is not a current count or a uniform cash entitlement. The displayed resident bands do not replace the separate rules for non-residents, working holiday makers or other special categories.

When were the tax cuts expected to appear in pay packets?

For most employees, changed withholding was expected to affect pay cycles from 1 July 2024. The tax return then reconciles liability and tax withheld; it does not automatically pay the same tax saving a second time or guarantee a refund.

What finance solutions does Natloans offer in this context?

The article referenced home purchases, asset finance, refinancing and investment lending as areas where Natloans can assist. Specific products, lenders and terms available to you depend on your individual circumstances. Contact Natloans directly to discuss your situation.

Does Natloans provide tax advice?

Natloans is described as a finance brokerage. This source does not verify whether the business or any individual is registered to provide tax-agent services. Ask who is authorised for the advice you need; direct tax-specific questions to the ATO or a registered tax agent.

Can I use the tax cut to improve my borrowing position?

Increased take-home pay may be a factor a lender considers when assessing serviceability, but this depends on lender policies, your full financial picture and current credit conditions. A Natloans broker can discuss how your circumstances may be assessed — contact the team for a personalised conversation.

How do I contact Natloans to discuss my options?

Visit the Natloans contact page to get in touch with the team directly.

Related Resources

• Unlock Savings Now with Natloans Home Loan Review Service — information on reviewing your existing home loan
• January Plated Run-Out Deals — related article on vehicle and asset finance opportunities
• Contact Natloans — speak with the team about your finance goals

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Source reference: Natloans public article, Tax Cuts Are Here! Maximise Your Benefits with Our Finance Solutions, published 4 July 2024, last page modification noted 3 September 2025. Retrieved 15 October 2026. Tax figures, thresholds and government policy details are as stated in that source and must be independently verified as current before use. This page is a structured summary of that published article for informational purposes and does not constitute financial, tax or legal advice.

Worked example: compare annual tax before allocating the saving

For a hypothetical Australian resident with ordinary taxable income of $85,000, using the published resident brackets and excluding Medicare levy, offsets, HELP repayments and all other adjustments:

Income year	Calculation	Income tax
2023–24	($45,000 − $18,200) × 19% + ($85,000 − $45,000) × 32.5%	$18,092
2024–25	($45,000 − $18,200) × 16% + ($85,000 − $45,000) × 30%	$16,288
Difference	$18,092 − $16,288	$1,804 per year

The difference is about $34.69 a week when divided by52, solely as a budgeting illustration. Actual payroll withholding, tax assessment and available cash can differ. This example is calculated from the historical schedules; it is not a Natloans client case, current tax estimate or approved borrowing increase.

Turn a confirmed budget change into a decision

1. Check actual take-home pay and essential expenses before committing the difference.
2. Compare saving a buffer, reducing existing debt or building a deposit against your goals.
3. Check extra-repayment limits and fees before directing money to a loan.
4. If refinancing, compare total switching costs and remaining term, not just the monthly repayment.
5. Have a lender assess the full current position before relying on additional borrowing capacity.