Stage 3 tax cuts

Stage 3 was the third phase of the Coalition-era personal income tax plan, revised by the Albanese government and applied from 1 July 2024 (FY 2024-25 onwards). The redesign cut the bottom bracket from 19% to 16%, kept the next bracket at 30% but raised its ceiling, and lifted the threshold where the 37% bracket starts to $135,000. The 45% top rate kicks in above $190,000. Stage 3 matters to property investors because the tax saving from negative gearing equals your loss multiplied by your marginal rate - lower brackets mean smaller refunds on the same paper loss. The cuts have since continued: the rate on the $18,200-$45,000 bracket dropped from 16% to 15% on 1 July 2026 (now in effect for FY 2026-27), and a further cut to 14% is legislated for 1 July 2027.