2026–27 Tax Year
Current YearUpdated ATO tax rates, thresholds, and rules for the 2026–27 financial year including the new 15% tax bracket and updated HELP thresholds.
What's New for 2026–27
Personal Income Tax
- Second marginal rate reduced from 16% to 15% on income between $18,201 and $45,000
- All other tax brackets and thresholds remain unchanged from 2025–26
- Maximum tax saving: $268 per year
- SAPTO thresholds updated (single shading-out threshold: $36,034)
Medicare Levy
- Rate remains 2% of taxable income
- Low-income threshold for singles: $28,011
- Low-income threshold for families: $47,238 (+ $4,338 per child after first)
Medicare Levy Surcharge
- Base threshold for singles: $105,000 (up from $101,000 in 2025–26)
- Base threshold for families: $210,000 (up from $202,000 in 2025–26)
- Tier 1: 1% (single $105,001–$123,000 / family $210,001–$246,000)
- Tier 2: 1.25% (single $123,001–$164,000 / family $246,001–$328,000)
- Tier 3: 1.5% (single $164,001+ / family $328,001+)
HELP/HECS Repayment (Marginal)
- Minimum repayment threshold: $69,528 (up from $67,000 in 2025–26)
- Marginal rate system — only pay on income above each threshold
- $0–$69,528: Nil repayment
- $69,529–$129,717: 15c per $1 over $69,528
- $129,718–$186,050: $9,028 + 17c per $1 over $129,717
- $186,051+: 10% of total repayment income
Super Guarantee
- Super Guarantee rate remains 12%
Resident Income Tax Rates
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,200 – $45,000 | 15c for each $1 over $18,200 |
| $45,000 – $135,000 | 30c for each $1 over $45,000 |
| $135,000 – $190,000 | 37c for each $1 over $135,000 |
| $190,000+ | 45c for each $1 over $190,000 |
These rates do not include the 2% Medicare levy.
HELP/HECS Repayment Thresholds
| Repayment income | Repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,528 – $129,717 | $0 + 15c per $1 over $69,528 |
| $129,717 – $186,050 | $9,028 + 17c per $1 over $129,717 |
| $186,050+ | 10% of total repayment income |
From 2025–26, HELP repayments are calculated using marginal rates (not a single flat rate). Repayment income = taxable income + reportable fringe benefits + net investment losses + reportable super contributions + exempt foreign employment income.
Medicare Levy Surcharge Thresholds
| Tier | Rate | Single | Family |
|---|---|---|---|
| Base | 0% | $0 – $105,000 | $0 – $210,000 |
| Tier 1 | 1% | $105,000 – $123,000 | $210,000 – $246,000 |
| Tier 2 | 1.25% | $123,000 – $164,000 | $246,000 – $328,000 |
| Tier 3 | 1.5% | $164,000+ | $328,000+ |
Family thresholds increase by $1,500 for each dependent child after the first. MLS only applies if you do not have appropriate private hospital cover.
Information sourced from the Australian Taxation Office (ATO) and Treasury legislation. All figures are for informational purposes only and do not constitute financial advice. Last updated: July 2026. Check the ATO website for the most current rates.