What the $4,529 Tax Refund Really Means for Australians in 2025
- Jun 20
- 3 min read
Understanding the real impact of Stage 3 tax cuts and how they affect your refund
In July 2024, Australia will roll out a significant reform in its personal income tax system. Commonly referred to as the Stage 3 tax cuts, this change has sparked headlines suggesting that “Aussies will get a $4,529 tax refund in 2025.” While the message may sound exciting, many people have misunderstood what this figure truly represents.
In this article, Baron Tax & Accounting breaks down what the $4,529 figure actually means, who benefits the most, and how these changes could impact your next tax return.
✅ What Are the Stage 3 Tax Cuts?
The Stage 3 tax cuts are part of a broader tax reform that was originally legislated in 2019. The aim is to simplify tax brackets and reduce tax rates for a wide range of income earners.
🔁 Comparison of Old vs. New Tax Brackets:
Income Bracket (AUD) | 2023–24 Rates | 2024–25 Rates |
$0 – $18,200 | 0% | 0% |
$18,201 – $45,000 | 19% | 16% |
$45,001 – $120,000 | 32.5% | 30% (up to $135,000) |
$120,001 – $180,000 | 37% | 37% (from $135,001) |
$180,001+ | 45% | 45% |
As you can see, the most noticeable changes are:
The middle tax rate is reduced from 32.5% to 30%
The low bracket rate is reduced from 19% to 16%
The threshold for the 37% tax rate increases from $120,000 to $135,000
💵 So Where Does the $4,529 Figure Come From? ($4,529 tax refund Australia)
The much-talked-about "$4,529 tax refund (Australia)" is not a lump-sum cash bonus or a one-off government handout.
Instead, it refers to the maximum amount of annual tax reduction an individual taxpayer can benefit from under the new system. To be precise:
Individuals earning $190,000 or more will pay $4,529 less tax compared to what they would have paid under the old rates.
It's important to clarify:
✅ It’s a tax saving, not a government refund check. It is achieved through lower tax withheld from your salary or wages throughout the year.
👤 Who Benefits the Most?
High-Income Earners
Those earning $150,000 to $200,000+ will see the largest dollar savings, especially due to the expansion of the 30% bracket.
Taxable Income | 2023–24 Tax | 2024–25 Tax | Tax Saving |
$100,000 | $21,217 | $17,288 | $3,929 |
$150,000 | $37,467 | $27,538 | $9,929 |
$190,000 | $56,167 | $51,638 | $4,529 |
Middle-Income Earners
Australians earning $60,000 to $100,000 will still enjoy tax savings of $1,000 to $3,900. These savings result from the combination of reduced tax rates and adjusted tax thresholds.
🧾 What Does This Mean for Your Tax Refund?
Many Australians may notice larger refunds when lodging their 2025 tax return — but only if their PAYG withholding was based on the new rates and if they had eligible deductions or offsets.
The real refund you receive will depend on: Your taxable income How much tax your employer withheld Deductions you claim (e.g., work-related expenses, donations) Eligibility for offsets such as LITO (Low Income Tax Offset)
It’s also possible that your refund may not increase significantly, especially if your withholding was already adjusted or if you have less deductible expenses than the previous year.
📌 Key Takeaways
The $4,529 figure is not a direct refund, but the maximum possible annual tax saving under the 2024–25 tax cuts.
Most income earners will benefit — particularly those in the $45,000 to $190,000 range.
Your actual refund will depend on various personal tax factors.
It’s the perfect time to review your PAYG withholding, deductions, and tax planning strategy before June 30.
💬 Need Help Maximising Your Tax Refund?
At Baron Tax & Accounting, we help thousands of individuals across Australia lodge their tax returns with confidence.Our expert team is here to ensure you take full advantage of all the 2024–25 tax changes and don’t miss any deduction opportunities.
✔ Online tax returns from just $44.90
✔ No upfront payment plans available
✔ 100% online, secure, and fast
✔ Free refund estimate calculator included
📩 File now
🔍 Bonus Tip:
Use our free tax refund calculator to estimate your 2025 return under the new tax rules!
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