The 2026 financial year starts on 1 July 2026 and ends on 30 June 2026. The financial year for tax purposes for individuals starts on 1st July and ends on 30 June of the following year.
Note assumption: The tax scale shown here is reproduced on the basis that it is the SAME as the previous year. (By the way, including the so-called “stage 3 tax cuts“.)
However, rates can and do change relatively often in response to government policies and this should be considered if using these rates for any kind of forecast.
Tax scale 2025-26
| Taxable Income | Tax On This Income |
| 0 to $18,200 | Nil |
| $18,201 to $45,000 | 19c for each $1 over $18,200 |
| $45,001 to $200,000 | $5,092 plus 30% for each $1 over $45,000 |
| $200,001 and over | $51,592 plus 45c for each $1 over $200,000 |
This tax table reflects the currently legislated rates. Please note that tax rates are subject to change according to changes in government policy.
The above table reflects the amended tax rates (“stage 3 tax cuts”) for tax years commencing 1 July 2024 (for 2024-25 and later years), providing the removal of the 37% rate and expanding the 32.5% (since changed to 30%) rate to an income of $200,000.
For further details, see the notes under tax rates for the previous year.
The above tables do not include Medicare Levy or the effect of any Low Income or Low and Middle Income tax offsets.
There are low income and other full or partial Medicare exemptions available. A Medicare Levy Surcharge may also be applicable and is applied on a progressive basis if eligible private health insurance cover is not maintained.
Tax and Policy Adjustments Applying From 1 July 2025 (not exhaustive)
Higher Tax Rates For Some Super Funds
The Treasurer has announced that from 1 July 2025, the tax rate applied to future earnings of funds in the accumulation phase with balances above $3 million will be increased to 30% (replacing the existing 15% rate).
The 30% tax rate will not be retrospective and is intended to apply only to relevant earnings from the 2025-26 year onwards from fund assets above $3 million in value. As the proposal currently stands, the value includes unrealised gains.
See: Treasurer’s media release Feb 28, 2023 and Fact Sheet
See also: The new 15% tax on $3M+ member total super balances from 1 July 2025 –– a tax analysis
“Payday Super” from 1 July 2026
A reform to the superannuation guarantee system has been proposed by the Treasurer, requiring employers to pay superannuation for their employees simultaneously with their salary and wages.
The implementation will apply from 1 July 2026.
This will bring forward the timing of super payments, compared to the present position, where employers typically pay quarterly in arrears.
An expectation from the change is that the frequency and value of superannuation losses from unpaid super will be reduced, with the ATO (with increased funding) will be in a better position to police compliance.
See: Treasurer’s media release.
This page was last modified 2023-05-04