Planning Hub

Australian tax year guides 2025-26 to 2027-28

Salary benchmarks, take-home breakdowns, bracket comparisons and planning tools across three Australian financial years.

3 Tax Years
200+ Benchmarks
2025–26 Current Year

Popular salary checkpoints

Take-home pay, tax breakdown, Medicare levy and effective rate for 2025-26.

All 44 salary checkpoints

Check by pay frequency

Find your take-home by the way you actually get paid.

Compare across tax years

See the exact bracket difference from 2025-26 through 2027-28.

Salary vs salary comparisons

Comparing two job offers, or modelling a raise? See the after-tax difference.

HELP/HECS repayment impact

See the take-home pay difference — with and without a HELP debt.

All 16 HELP comparison incomes

Key policy changes by year

Legislated changes that help you plan ahead.

2025-26 Current

  • Resident tax rates continue from post-Stage 3 settings.
  • SG rate is 12% from 1 July 2025.
  • HELP repayment uses the new marginal method.

2026-27

  • The 16% resident bracket is legislated to reduce to 15% from 1 July 2026.
  • Payday super is legislated to commence from 1 July 2026.
  • Use estimates for planning until ATO schedules are finalized.

2027-28

  • The 15% bracket is legislated to reduce to 14% from 1 July 2027.
  • LISTO threshold and cap proposals are currently in policy workflow.
  • Model cashflow scenarios early and update when final instruments publish.

Frequently asked questions

When does the Australian financial year start and end?

The Australian financial year runs from 1 July to 30 June the following year. For example, the 2025-26 financial year starts on 1 July 2025 and ends on 30 June 2026. Tax returns for each financial year are generally due by 31 October.

What are the current income tax brackets for 2025-26?

For 2025-26 the tax-free threshold is $18,200, then 16% applies up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above $190,000. Most residents also pay a 2% Medicare levy on taxable income above the levy threshold.

How do tax brackets change from 2025-26 to 2027-28?

From 2026-27 the 16% rate drops to 15% and the 30% bracket threshold rises to $144,000. In 2027-28 the rate drops again to 14% with the 30% bracket extending to $153,000. These legislated changes mean slightly more take-home pay each year for the same gross salary.

Does my HELP/HECS debt change my take-home pay?

Yes. If you have a HELP, HECS-HELP, or VSL debt, compulsory repayments are withheld from your pay once your repayment income exceeds the threshold (currently $54,435 for 2025-26). The repayment rate is tiered from 1% up to 10%, so the impact grows as your income rises.

What is the Medicare levy and who pays it?

The Medicare levy is a 2% charge on your taxable income that funds Australia's public health system. Most taxpayers pay it, but low-income earners below the threshold receive a reduction or full exemption. A separate Medicare levy surcharge of 1% to 1.5% may apply if you earn above $93,000 and do not hold private hospital cover.