Blog · Tax
Australian tax rates 2026–27: brackets, thresholds and key figures
Every year we get the same questions from clients across the Sunshine Coast: what are the new tax brackets, how much tax will I pay, and what's changed? This page puts the 2026–27 figures in one place. It covers individuals, companies, super and small business, and we'll keep it updated as the rules change.
The 2026–27 financial year runs from 1 July 2026 to 30 June 2027.
What's changed from last year
| Item | 2025–26 | 2026–27 |
|---|---|---|
| First tax rate (18, 201–45,000) | 16% | 15% |
| Work-related expenses | Claim actual costs only | New $1,000 standard deduction (optional, no receipts needed) |
| Medicare levy surcharge (singles, base threshold) | $101,000 | $105,000 |
| Concessional super cap | $30,000 | $32,500 |
| Non-concessional super cap | $120,000 | $130,000 |
| Super guarantee timing | Quarterly | Payday Super (each payday) |
| Large super balances | No extra tax | Division 296 tax starts |
| $20,000 instant asset write-off | Extended for one year | Made permanent |
Resident individual tax rates 2026–27
These are the tax brackets for Australian residents for 2026–27. They don't include the 2% Medicare levy.
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
The tax-free threshold stays at $18,200 for residents. To see what this means for your pay, try our free tax calculator.
The 16% rate is being cut in two steps
The lowest rate was 16% in 2025–26. It's now law that it drops to 15% from 1 July 2026, then to 14% from 1 July 2027. Anyone earning over $45,000 saves up to $268 in 2026–27 compared with last year, and up to $536 a year from 2027–28 compared with the 2024–25 settings.
New for workers: the $1,000 standard deduction
From the 2026–27 income year, eligible workers can claim a standard deduction of up to $1,000 for work-related expenses without keeping receipts. It's now law. If your actual work expenses are more than $1,000, you can claim those instead (with records), but you can't have both. Keep your receipts this year until you know which option is better for you.
Coming in 2027–28: Working Australians Tax Offset
Announced in the 2026–27 Federal Budget and now law, the Working Australians Tax Offset (WATO) gives eligible residents with labour income an offset of up to $250 a year from 2027–28. It doesn't apply to your 2026–27 return.
How much tax will I pay? Worked examples for 2026–27
Here's the tax for a resident with no other offsets, deductions or HELP debt, who holds private hospital cover (so no Medicare levy surcharge).
| $60,000 | $100,000 | $150,000 | |
|---|---|---|---|
| Income tax (brackets above) | $8,520 | $20,520 | $36,570 |
| Less low income tax offset | –$100 | Nil | Nil |
| Plus Medicare levy (2%) | $1,200 | $2,000 | $3,000 |
| Total tax | $9,620 | $22,520 | $39,570 |
| Effective rate | 16.0% | 22.5% | 26.4% |
How we got there for $100,000: 4, 020 + 30100,000 – $45,000) = $4,020 + $16,500 = $20,520, plus $2,000 Medicare levy.
If the 150, 000earnerhadnoprivatehospitalcover, theywouldalsopayaMedicarelevysurchargeof1.251,875). Claiming the $1,000 standard deduction would cut each person's tax a little further, by their marginal rate plus Medicare levy.
Low income tax offset (LITO)
| Taxable income | LITO |
|---|---|
| $37,500 or less | $700 |
| $37,501 – $45,000 | $700 less 5c for each $1 over $37,500 |
| $45,001 – $66,667 | $325 less 1.5c for each $1 over $45,000 |
| Over $66,667 | Nil |
Combined with the tax-free threshold, LITO means a resident can earn up to about $22,866 in 2026–27 before paying any income tax (Medicare levy aside). LITO is non-refundable and is worked out automatically when you lodge.
Medicare levy and Medicare levy surcharge
The Medicare levy is 2% of taxable income. Low-income earners pay a reduced levy or none. For 2025–26 a single person (not eligible for the seniors and pensioners tax offset) pays no levy up to $28,011 and a reduced levy up to $35,013. The 2026–27 low-income thresholds are usually announced in the following year's Budget, so they aren't known yet.
The Medicare levy surcharge applies if you don't have appropriate private hospital cover and your income for MLS purposes is above these thresholds:
| 2026–27 | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Singles | $105,000 or less | $105,001 – $123,000 | $123,001 – $164,000 | $164,001 or more |
| Families | $210,000 or less | $210,001 – $246,000 | $246,001 – $328,000 | $328,001 or more |
| Surcharge | 0% | 1% | 1.25% | 1.5% |
The family threshold goes up by $1,500 for each dependent child after the first.
Foreign resident and working holiday maker tax rates
Foreign residents don't get the tax-free threshold and don't pay the Medicare levy. The rates below are the ATO's latest published table (2025–26). The 2026–27 cut only changes the 16% resident bracket, which foreign residents don't have, but we'll confirm once the ATO publishes the 2026–27 table.
| Foreign resident taxable income | Tax on this income |
|---|---|
| $0 – $135,000 | 30c for each $1 |
| $135,001 – $190,000 | $40,500 plus 37c for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45c for each $1 over $190,000 |
Working holiday makers (visa subclass 417 or 462) pay 15% on the first $45,000, then 30% to $135,000, 37% to $190,000 and 45% above that.
Company tax rates 2026–27
| Company type | Tax rate |
|---|---|
| Base rate entity: aggregated turnover under $50 million and no more than 80% of assessable income is passive (base rate entity passive income) | 25% |
| All other companies | 30% |
Passive income includes things like rent, interest, dividends and net capital gains. A company that mostly holds investments usually pays 30%, even if it's small. If you're weighing up a company, trust or sole trader structure, see our business structure and entity setup service or our guide to family trusts.
Super rates and thresholds 2026–27
| Item | 2026–27 |
|---|---|
| Super guarantee rate | 12% |
| Concessional contributions cap | $32,500 |
| Non-concessional contributions cap | $130,000 |
| Maximum super contribution base (annual) | $270,830 |
Payday Super started on 1 July 2026. Employers must now pay super guarantee with each pay run, and it generally must reach the employee's fund within 7 business days after payday. The old quarterly due dates no longer apply to new pay periods.
Division 296 also started on 1 July 2026. If your total super balance is over $3 million, an extra 15% tax applies to the share of your earnings linked to the balance above $3 million. Above $10 million, a further 10% applies to the share linked to the balance over $10 million. Both thresholds are indexed. If you run an SMSF, talk to our SMSF accountant team.
Small business: instant asset write-off and GST
- Instant asset write-off: From 1 July 2026, the $20,000 instant asset write-off is permanent for small businesses with aggregated turnover under $10 million. It applies per asset, so you can write off several assets each under $20,000.
- GST registration: You must register for GST within 21 days of your GST turnover reaching 75, 000ormore(150,000 for not-for-profits). Our guide to BAS and GST basics explains how it works.
Other 2026–27 Budget changes to know about
These don't change this year's rates but will affect planning:
- Negative gearing: From 1 July 2027, losses on established residential property bought after 7:30pm AEST on 12 May 2026 can't be offset against other income such as wages. Existing investments are unaffected. This is law.
- Capital gains tax: From 1 July 2027 the 50% CGT discount is replaced for gains accruing from that date, so investors are taxed on real (after-inflation) gains. This is law.
- Discretionary trusts: A proposed 30% minimum tax on discretionary trusts from 1 July 2028 is not yet law.
If you own or are thinking about an investment property, our article on rental property deductions and CGT is a good starting point.
Key lodgment and payment dates for 2026–27
| Date | What's due |
|---|---|
| 28 October 2026 | Quarter 1 BAS (25 November 2026 if lodged by a tax or BAS agent) |
| 31 October 2026 | 2025–26 individual tax return if you lodge yourself |
| 28 February 2027 | Quarter 2 BAS |
| 31 March 2027 | Agent-lodged returns for individuals and trusts whose last return had a tax liability of $20,000 or more |
| 28 April 2027 | Quarter 3 BAS (26 May 2027 through an agent) |
| 15 May 2027 | Most remaining agent-lodged individual and trust returns |
| 5 June 2027 | Agent-lodged individual and trust returns, if you also pay any amount due by this date |
| 28 July 2027 | Quarter 4 BAS |
If you haven't lodged your 2025–26 return yet, contact a registered tax agent before 31 October 2026 to be added to their lodgment program. Your due date then depends on your situation.
How we help
We're a registered tax agent based on the Sunshine Coast, and we work with individuals, families and small businesses across Queensland. We can:
- prepare and lodge your individual tax return and work out whether the $1,000 standard deduction or your actual expenses is better for you
- handle your BAS, GST and Payday Super through our BAS agent services
- review your structure, super contributions and investment plans before the 2027 changes start
Frequently asked questions
What are the tax brackets for 2026–27 in Australia?
For residents: nil up to $18,200, 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. The 2% Medicare levy is extra.
How much tax will I pay on $100,000 in 2026–27?
A resident with no other deductions or offsets pays $20,520 income tax plus a $2,000 Medicare levy, so $22,520 in total. The Medicare levy surcharge may also apply if you don't have private hospital cover.
Is the 16% tax rate being cut?
Yes. It dropped to 15% from 1 July 2026 and will drop to 14% from 1 July 2027. Both cuts are law.
Can I claim $1,000 in work deductions without receipts?
From the 2026–27 income year, eligible workers can claim a standard deduction of up to $1,000 without receipts. It doesn't apply to your 2025–26 return. If your actual work expenses are higher, you can claim them instead, but you'll need records.
What is the super guarantee rate for 2026–27?
12%. Under Payday Super, employers must now pay it each payday, and it generally needs to reach the fund within 7 business days.
What's the company tax rate for a small business?
25% if the company is a base rate entity: aggregated turnover under $50 million and no more than 80% of its assessable income is passive. Otherwise it's 30%.