2025 Tax Brackets

Hi All.

Welcome to a New Tax Year! What comes with a new Tax year, new tax brackets.

This years 2025 Resident Tax Brackets are as follows:

Taxable income Tax on this income

0 – $18,200 Nil

$18,201 – $45,000 16c for each $1 over $18,200

$45,001 – $135,000 $4,288 plus 30c for each $1 over $45,000

$135,001 – $190,000 $31,288 plus 37c for each $1 over $135,000

$190,001 and over $51,638 plus 45c for each $1 over $190,000

These tax rates show an easing back of income tax in all brackets from the 2024 financial year. A clear winner are the people earning below $135 000 with potential tax savings of roughly 8-9%. Case example being someone earning 120,000 paying $29,467 in 2024 to $26,788 in 2025 or a year on year tax saving of $2,679.  

It’s important to factor into your tax strategies this year the rise of the middle tax bracket from 120,000 in 2024 to 135,000 in 2025. If you have the ability to spread your income through means of a trust structure you may be able to get the full benefit of the 30c rate in this bracket depending on your circumstances.

If you have any questions or concerns regarding your 2025 Tax’s don’t hesitate to reach out.

Disclaimer: The above statement is for informational purposes only and is not intended to be personal taxation advice of any kind.