Australian Tax Guides
- Tax-Free Threshold in Australia (2026–27): What It Is and How to Claim ItThe tax-free threshold is $18,200 in 2026–27. When to claim it on your TFN declaration, two jobs, part-year residents and how LITO stretches it.
- Low Income Tax Offset (LITO) for 2026–27LITO is worth up to $700 for residents with taxable income to $37,500, tapering to nil at $66,667. Exact amounts, how it is applied and examples.
- Marginal Tax Rates in Australia for 2026–27Australian marginal tax rates for 2026–27: 15%, 30%, 37% and 45%, effective rates with LITO, Medicare and HELP, and marginal vs average.
- Average Salary in Australia (2026)The average full-time wage in Australia is $2,083.70 a week ($108,352 a year, ABS May 2026). Median, state and Sydney figures, and take-home pay after tax.
- Tax File Number: How to Get One, Find Yours and Avoid No-TFN WithholdingHow to apply for a TFN, where to find yours (myGov, income statement, NOA) and why payers and banks withhold 47% if you do not quote one.
- ATO Income Statement and PAYG Payment Summary ExplainedWhat an ATO income statement is, how it replaced the PAYG payment summary, when it is tax ready (by 14 July) and how to find it in myGov.
- What Is PAYG? PAYG Withholding and PAYG Instalments ExplainedPAYG means pay as you go. How PAYG withholding works for employees and employers, and how PAYG instalments work for business and investment income.
- Your ATO Notice of Assessment, Explained Line by LineWhat an ATO notice of assessment shows, when it arrives, how to find it in myGov, how to read each line, and how to amend or object if it is wrong.
- Tax Return Due Dates in Australia for 2025–26Tax time dates for 2025–26 returns: the 31 October deadline (2 November 2026), tax agent dates, who must lodge, processing times and late penalties.
- What Can I Claim on Tax? Work-Related Deductions in AustraliaWhat you can claim on tax in 2025–26: the ATO's three rules, the 70c/hour work from home rate, car rates, records and the new $1,000 standard deduction.
- Medicare Levy Surcharge (MLS) Thresholds and Rates for 2026–27MLS thresholds for 2026–27 and 2025–26, income for MLS purposes, what counts as appropriate hospital cover, and how LHC loading and the rebate fit in.
- Seniors and Pensioners Tax Offset (SAPTO) ExplainedSAPTO eligibility, 2025–26 amounts and thresholds, the 12.5c taper, and how it combines with LITO and the higher Medicare levy threshold, with examples.
- Tax on Redundancy Pay and Termination Payments (2026–27)How redundancy pay is taxed in 2026–27: the tax-free limit, ETP rates and caps, ETP codes, unused leave on termination and Lump sum E back pay.
- Payment in Lieu of Notice in Australia: Notice Periods and TaxPayment in lieu of notice: NES notice periods, what the payment must include, when it is due, and how it is taxed as an ETP or within a redundancy.
- GST registration in Australia: the $75,000 threshold and how to registerWhen you must register for GST ($75,000 threshold, $150,000 for non-profits), how to register after getting an ABN, BAS cycles, due dates and tax invoices.
- PAYG instalments: how the ATO sets them and when they are dueHow PAYG instalments work: when the ATO enters you, how your instalment amount or rate is set, the 2026–27 GDP uplift, quarterly due dates and how to vary safely.
- Instant asset write-off: $20,000 limit for 2025–26 and 2026–27The $20,000 instant asset write-off for businesses under $10,000,000 turnover: limits by year, 2025–26 and 2026–27 rules, how to claim, and the small business pool.
- Main residence exemption and the 6-year rule for CGTHow the CGT main residence exemption works: eligibility, the 6-year rule, partial exemptions when renting, moving house, foreign residents and the 2027 reforms.
- Investment property tax deductions: what you can and can’t claimWhat landlords can claim: interest, land tax, repairs, capital works at 2.5%, depreciation limits, borrowing costs, the travel ban and negative gearing changes.
- Government super co-contribution: up to $500 for 2026–27How the government co-contribution works in 2026–27: $500 max, income thresholds $49,293–$64,293, eligibility, plus LISTO and the spouse tax offset.
What the Australian tax guides cover
These guides explain the rules behind the calculators in plain English. Each one starts with a short answer and then works through examples using 2026–27 figures. They are grouped by the decisions people actually face:
- Pay and payslips: the tax-free threshold, PAYG withholding, working without a TFN, and your income statement.
- Tax time: lodging your 2025–26 return, work-related deductions, the notice of assessment, and refunds or bills.
- Super and study loans: how salary sacrifice, contribution caps and HELP repayments interact with your pay.
- Business and property: GST, sole trader tax, payroll tax, capital gains tax, stamp duty and land tax.
How the guides are researched and sourced
Every factual claim in a guide comes from an official source, which is listed at the end of that guide. The sources are the Australian Taxation Office, the Federal Register of Legislation, Treasury and the Budget papers, Services Australia, the Fair Work Ombudsman and Fair Work Commission, Moneysmart, Study Assist, and the eight state and territory revenue offices. Commentary and secondary sources are not used for rates or thresholds. If a figure cannot be confirmed from an official page, it is left out.
Rates and thresholds in the guides come from the same data files the calculators use, so a guide and a calculator never disagree about a number. When a new rate is published, both update together. Each guide shows the date it was last reviewed.
Key dates for the 2026–27 income year
Australia's income year runs from 1 July to 30 June, and most changes start on 1 July. These dates matter most for employees and small businesses this year:
| Date | What happens | Source |
|---|---|---|
| 1 July 2026 | First resident tax rate falls to 15%. Super guarantee is paid with each payday (Payday Super). National Minimum Wage rises to $26.44 an hour. | ATO, Fair Work Ombudsman |
| 14 July 2026 | Most employers must have finalised Single Touch Payroll data, so your income statement is "tax ready". | ATO |
| 31 October 2026 | Due date to lodge your 2025–26 return yourself, for example through myTax. | ATO |
| 1 April 2027 | Work-related items provided through salary sacrifice stop being exempt from fringe benefits tax. | ATO |
| 30 June 2027 | End of the 2026–27 income year. | ATO |
| 1 July 2027 | First resident tax rate falls again, to 14%. | ATO, Parliament |
The 2026–27 figures the guides rely on
A handful of official numbers come up again and again across the guides. Each one is set by a different body and changes on its own timetable:
| Figure | 2026–27 value | Set by |
|---|---|---|
| Tax-free threshold | $18,200 | Parliament (Income Tax Rates Act), published by the ATO |
| Resident tax rates | 15%, 30%, 37%, 45% | Parliament, published by the ATO |
| Medicare levy | 2% | Parliament, administered by the ATO |
| Super guarantee | 12% | ATO key super rates |
| Concessional contributions cap | $32,500 | Indexed to wages, published by the ATO |
| HELP repayment threshold | $69,528 | ATO study loan tables |
| National Minimum Wage | $26.44 an hour | Fair Work Commission |
| GST | 10% | Parliament (GST Act), administered by the ATO |
How each guide is structured
Every guide opens with a one-paragraph answer, so you can stop reading once your question is answered. The sections that follow add the detail: who the rule applies to, a worked example with real numbers, the forms or myGov steps involved, deadlines and common mistakes, such as claiming the tax-free threshold twice, forgetting to declare a study loan, and treating a package that includes super as base salary.
At the end of each guide you will find frequently asked questions, links to the calculators that apply the rule, and the list of official sources. When a rule is about to change, such as the first tax rate falling again on 1 July 2027, the guide gives both the current and the legislated future position and says which year each applies to.
Reading a guide: which year and which rules apply
Most mistakes come from mixing up years. The return you lodge now covers 2025–26 (1 July 2025 to 30 June 2026), and uses the 16% first rate. Your pay from 1 July 2026 is taxed at 2026–27 rates. The guides label every figure with its year. Where a rule changed during the year, such as the switch from quarterly super to Payday Super, they explain which rule applies to which payment date.
Many guides cover the same topic from two sides. The employee side explains what you receive and what you can claim. The employer or business side explains what you must withhold, pay and report. Pick the side that matches you. Withholding schedules, for example, are written for payers, while the tax return guides are written for the person lodging.
Lodging your 2025–26 return: what to have ready
Tax time guides focus on the return most people are lodging now. According to the ATO, myTax pre-fills most information from employers, banks, government agencies and health funds by late July. Most returns lodged online are processed in about 12 business days, and refunds generally arrive within 2 weeks. To use myTax you need a myGov account linked to the ATO.
- Your income statement in myGov, marked "tax ready" by each employer.
- Records for every deduction you claim, such as receipts, logbooks and working-from-home records.
- Details of any other income: interest, dividends, rent, crypto or capital gains.
- Private health insurance details, which myTax pre-fills from your health fund.
- Bank account details for your refund.
When a guide is not enough
The guides give general information, not personal tax or financial advice. The ATO itself says it does not advise on whether to enter a salary sacrifice arrangement, and says to seek financial advice first. For complicated situations, a registered tax agent can prepare and lodge your return. Examples include changing residency during the year, selling an investment property, or running a business through a company or trust.
Frequently asked questions
When does the Australian financial year start and end?
On 1 July and 30 June. The 2026–27 income year runs from 1 July 2026 to 30 June 2027.
When is my tax return due?
If you lodge yourself, the 2025–26 return is due by 31 October 2026. You can lodge through myTax once your income statement is tax ready.
Are the guides financial advice?
No. They explain the rules in general terms. For decisions that depend on your circumstances, such as salary sacrifice or selling an investment property, speak to a registered tax agent or a licensed financial adviser.
How often are the guides updated?
Whenever an official rate or rule changes, and at least once a year after the 1 July changes. The review date is shown on each guide.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- ATO: Personal income tax – new tax cuts for every Australian taxpayer (16% to 15% from 1 July 2026, 14% from 1 July 2027)
- ATO: Tax for employees (TFN declaration, no tax-free threshold for a second job, income statements finalised by 14 July)
- ATO: Lodge your tax return online with myTax (due date 31 October)
- ATO: Salary sacrificing for employees
- ATO: What payments are qualifying earnings (Payday Super, from 1 July 2026)
- Fair Work Ombudsman: Minimum wage increase starts today (1 July 2026)