Everything Australian taxpayers ask us most — rates, levies, deductions and deadlines, kept current for the 2026/27 financial year.
You usually have to pay tax when you earn money from employment, pensions, government payments, investments, and foreign sources.
Important: Income tax is a fundamental part of Australia's tax system, funding essential public services and infrastructure.
Current Australian tax rates for the 2026/27 financial year:
| 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 |
Lower Lowest Bracket: The tax rate for the $18,201–$45,000 range dropped from 16% to 15% (saving up to $268 compared to 2024–25 settings).
Instant Deduction: Introduction of a $1,000 instant tax deduction for work-related expenses without needing receipts.
Most people pay a Medicare levy, which is 2% of your taxable income. The levy is charged as part of your yearly income tax assessment.
The Medicare levy helps fund Australia's public health system, ensuring healthcare services are available to all residents.
Lower Income Reduction: If you're on a lower income, your levy may be reduced, or you may not have to pay it at all.
Common tax deductions that can help to reduce your taxable income:
Remember: Keep all receipts and records for deductions you claim. They must be directly related to earning your income.
Your tax return must be lodged or you must engage a tax agent by 31 October.
If you use a registered tax agent, they may have extended deadlines. Contact Count Right Tax & Accounting for professional assistance with your tax return.
Important Deadline: Don't miss the deadline! Late lodgment can result in penalties and interest charges.
Salary sacrificing is a regular pre-tax contribution from your regular income into your superannuation and is taxed at the lower rate of 15%.
This strategy can significantly reduce your taxable income and increase your retirement savings simultaneously.
Tax Advantage: Instead of paying your marginal tax rate (which could be 30%, 37%, or 45%), your super contributions are only taxed at 15%.
Small habits compound. These are the principles we return to with every client.
Create a Budget
Be mindful of expenses
Zero Base Budget for Assets
Plan with vision
Be an Investor
Save regularly
Book a free 30-minute session and we'll walk through your situation, your deductions and your deadlines — no obligation.