What is the tax-free threshold in Australia for 2025-26?

The tax-free threshold for Australian residents in 2025-26 is $18,200. Income above this amount is taxed at the applicable marginal rate. Non-residents have no tax-free threshold and are taxed on every dollar from $1.

What is the Medicare Levy for 2025-26?

The Medicare Levy is 2% of taxable income for most Australian residents. Low-income earners below the Medicare Levy low-income threshold may be exempt or pay a reduced amount.

What is the company tax rate in Australia for 2025-26?

Base rate entities (aggregated turnover under $50 million, with 80% or less passive income) pay 25%. All other companies pay 30%.

What is the superannuation guarantee rate for 2025-26?

The superannuation guarantee rate increased to 12% from 1 July 2025, up from 11.5% in 2024-25. Employers must contribute 12% of ordinary time earnings to eligible employees' super funds.

Australian Tax Rates 2025–26

Individual income tax scales for Australian residents and non-residents. Updated for the 2025–26 financial year.

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Note: These rates apply from 1 July 2025 (2025–26 financial year). The Stage 3 tax cuts that took effect from 1 July 2024 are reflected here. The rates do not include the Medicare Levy of 2%. For personalised advice, contact our registered tax agent.

Individual Income Tax Rates - Residents

These rates apply to individuals who are Australian residents for tax purposes.

Tax Rates 2025–26

Resident tax rates 2025–26
Taxable income	Tax on this income	Effective rate (approx.)
$0 – $18,200	Nil	0%
$18,201 – $45,000	19c for each $1 over $18,200	up to 11.4%
$45,001 – $135,000	$5,092 plus 32.5c for each $1 over $45,000	up to 28.5%
$135,001 – $190,000	$34,342 plus 37c for each $1 over $135,000	up to 34.3%
$190,001 and over	$54,802 plus 45c for each $1 over $190,000	45% (top marginal)

Medicare Levy: 2% of taxable income (on top of the above rates).
Medicare Levy Surcharge: 1%–1.5% for high-income earners without private hospital cover (income > $93,000 singles / $186,000 families for 2025–26).

Low Income Tax Offset (LITO) 2025–26

Taxable income	LITO amount
$0 – $37,500	$700 (maximum)
$37,501 – $45,000	$700 reduced by 5c per $1 over $37,500
$45,001 – $66,667	$325 reduced by 1.5c per $1 over $45,000
$66,668 and over	Nil

Non-Resident Tax Rates 2025–26

These rates apply to individuals who are not Australian residents for tax purposes. Non-residents do not pay the Medicare Levy.

Taxable income	Tax on this income
$0 – $135,000	32.5c for each $1
$135,001 – $190,000	$43,875 plus 37c for each $1 over $135,000
$190,001 and over	$64,235 plus 45c for each $1 over $190,000

Working Holiday Makers 2025–26

Taxable income	Tax on this income
$0 – $45,000	15c for each $1
$45,001 – $135,000	$6,750 plus 32.5c for each $1 over $45,000
$135,001 – $190,000	$36,000 plus 37c for each $1 over $135,000
$190,001 and over	$56,350 plus 45c for each $1 over $190,000

Superannuation Rates 2025–26

Item	2025–26 Rate / Amount
Superannuation Guarantee (SG) Rate	12.0% (increased from 11.5% from 1 July 2025)
Concessional Contributions Cap	$30,000 per year
Non-Concessional Contributions Cap	$120,000 per year
Tax rate on concessional contributions	15% (30% if income + contributions > $250,000)
General Transfer Balance Cap	$1.9 million

Company Tax Rates 2025–26

Company type	Tax rate
Base rate entity (aggregated turnover < $50M)	25%
General corporate tax rate	30%

Key Tax Thresholds 2025–26

Threshold	Amount
Tax-free threshold (residents)	$18,200
Medicare Levy low-income threshold (singles)	$26,000 (approx.)
Medicare Levy Surcharge threshold (singles)	$93,000
CGT discount (individuals, >12 months)	50%
Instant asset write-off (small business)	$20,000 per asset (2024–25; confirm for 2025–26)

Disclaimer: These rates are provided as general information only and may be subject to change. For personalised tax advice tailored to your situation, please contact a registered tax agent. Always verify current rates with the ATO website.