Key takeaways
- The lowest marginal tax rate fell from 16% to 15% on 1 July 2026 — and is legislated to fall to 14% from 1 July 2027.
- Payday Super started on 1 July 2026: super is now paid with every payday.
- The $20,000 instant asset write-off is now permanent for small businesses.
- HELP, Medicare levy surcharge and super thresholds have all been indexed.
The 2026–27 income year (1 July 2026 – 30 June 2027) brought several changes for individuals, employers and small businesses. Here's a summary of the ones most likely to affect you.
Individuals
These rates don't include the 2% Medicare levy. The 15% rate is legislated to fall to 14% from 1 July 2027.
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
Other changes for individuals
- HELP: compulsory repayments start once repayment income exceeds $69,528, under the marginal system introduced in 2025–26.
- Medicare levy surcharge: the base-tier threshold rose to $105,000 for singles and $210,000 for families.
- Super: the concessional contributions cap increased to $32,500.
- Car expenses: the cents-per-kilometre rate is 91 cents for 2026–27.
Employers: Payday Super
From 1 July 2026, employers must pay super guarantee with each pay cycle, rather than quarterly. Contributions generally need to reach the employee's fund within 7 business days of payday. The super guarantee rate remains 12%, and the maximum contribution base is now an annual amount — $270,830 for 2026–27.
Small businesses
The $20,000 instant asset write-off for businesses with aggregated turnover under $10 million has been made permanent from 1 July 2026. Businesses that previously opted out of simplified depreciation can re-enter until 30 June 2027 without waiting for the usual five-year lock-out.
Official sources
General information only. This article doesn't take into account your personal circumstances and isn't a substitute for professional advice. Tax rules and thresholds change — check current details with the ATO or contact us for advice specific to you.
Published by
ANS Taxation & Accounting
Melbourne accounting and tax practice