Following the 2018 Budget a number of adjustments to the personal tax rates were legislated, taking effect in the years from 1 July 2018 through to 1 July 2024. The legislation is here.
The 2025-26 fiscal year commences on 1 July 2025 and ends on 30 June 2026.
In January 2024, the government announced further changes to the tax scale for to take effect from 1 July 2024 and later years. The effect is to increase the overall tax compared to the previous position for incomes over $135,000.
The revised tax scale for 2025-26 is below. The legislation is here.
Non-residents Tax Scale 2025-26
| Taxable income | Tax on this income |
| $0 to $135,000 | 30 cents for each $1 |
| $135,000 to $190,000 | $40,500 plus 37 cents for each $1 over $135,000 |
| $190,001 and over | $60,850 plus 45 cents for each $1 over $200,000 |
Non-residents do not pay the Medicare Levy.
Note that these rates are based on existing proposed legislation applying to a future tax period. The tax rates can and may be changed in response to government policy.
New Measures Coming Into Effect 2025-26
A number of announced new measures specifically affecting foreign residents were included the MYEFO 2023 statement from the Treasurer on December 13, 2023. Subject to legislation being passed, the measures will have effect within the 2025-26 financial year.
The measures include:
- increased fees for foreign investors in residential housing; reduced Build To Rent project fees (summarised here)
- For contracts from 1 January 2025 the foreign resident capital gains withholding tax rate threshold will be removed (currently at $750,000); and the withholding rate is to be increased from 12.5% to 15%.
This page was last modified 2024-02-07