“There will still be tax cuts although they will be reduced,” he said.

“And any strategies that were put in place to take advantage of those cuts can still be utilised.”

The government announced last Friday that from July 1 2024, the 37 per cent marginal tax rate was to be abolished for those earning more than $120,000 a year, and the 32.5 per cent tax rate was to be reduced to 30 per cent for people earning between $45,000 and $200,000.

For earnings above $200,000, the current 45 per cent tax rate has been retained.

David Busoli, principal of SMSF Alliance, said for those planning on using the tax cuts for contributions it is useful to know what will now be available.

“As there will be much emotive comment on the Government's decision to make changes to the stage three tax cuts, I thought it might be useful to show what this means to the numbers for the next financial year,” he said.

The below table, compiled by Mr Busoli, indicates what the revised tax cuts will now mean for those in most tax brackets.

Mr Day said making extra concessional contributions from the tax cuts that will be forthcoming is best suited to pre-retirees who have no mortgage commitments.

“If people still had a mortgage it would be better to direct those tax cuts towards paying that off as well as coping with the increased cost of living expenses,” he said.

“But if you have no mortgage, you should look to maximise your contributions with that surplus income.”

Linda Bruce, senior technical services manager for Colonial First State, told SMSF Adviser late last year that the stage three tax cuts can be used as a tax-effective way to minimise taxable income in the current financial year and anticipate higher taxable income in the years to come.

She said advisers might explore strategies aimed at enhancing or advancing eligible tax deductions ultimately aiming to minimise taxable income to the greatest extent possible.

“A client who is a member of an SMSF, can make an additional personal deductible contribution in June 2024, and can claim this additional contribution as a tax deduction in the current financial year,” she said.

“The SMSF, subject to the fund’s governing rules, can have until 28 July 2024 to allocate these additional contributions to members’ accumulation accounts so these contributions, although claimed as a tax deduction in the current financial year, will count towards the member’s next financial year’s concessional contribution cap.

“In summary, effectively, the client can bring forward next year’s tax deduction for personal contributions into this year without breaching their concessional contribution cap.”