2025 Federal Budget: Key Tax Changes You Need to Know
The latest federal budget includes several important tax changes that could affect your finances. Here's what you need to know.
Read MoreFree, accurate, and up-to-date with the latest ATO rates for 2025-2026 financial year
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Updated with the latest ATO tax rates and thresholds for the 2025-2026 financial year.
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Our calculators use these official ATO tax rates
Taxable Income | Tax on this Income |
---|---|
$0 – $18,200 | Nil |
$18,201 – $45,000 | 19c for each $1 over $18,200 |
$45,001 – $120,000 | $5,092 plus 32.5c for each $1 over $45,000 |
$120,001 – $180,000 | $29,467 plus 37c for each $1 over $120,000 |
$180,001 and over | $51,667 plus 45c for each $1 over $180,000 |
The above rates do not include the Medicare Levy of 2.0% or Medicare Levy Surcharge (if applicable).
Stay informed about important tax updates and changes
The latest federal budget includes several important tax changes that could affect your finances. Here's what you need to know.
Read MoreWith the end of the financial year approaching, ensure you make any last-minute purchases for tax deductions before June 30.
Read MoreThe superannuation guarantee rate will increase from 11% to 11.5% starting July 1, 2025. Here's how it affects your retirement savings.
Read MoreThe amount of tax you pay in Australia depends on your income level and tax residency status. Australia uses a progressive tax system where higher incomes are taxed at higher rates. For the 2025-2026 financial year, Australian residents pay no tax on the first $18,200 of income (the tax-free threshold), then progressively higher rates as income increases. Additional components like the Medicare levy (2% of taxable income) may also apply. Use our income tax calculator to get an accurate estimate based on your specific situation.
Weekly tax in Australia is calculated using the PAYG (Pay As You Go) withholding system. Your employer withholds tax from your weekly pay based on your income level and tax residency status. The calculation takes your weekly income, projects it to an annual amount, applies the relevant tax rates and thresholds, then converts the annual tax back to a weekly amount. The process also includes Medicare levy and adjustments for HELP debt or tax offsets. Our weekly tax calculator can help you estimate how much tax will be withheld from your weekly pay.
There are several legitimate ways to reduce your taxable income in Australia, including claiming tax deductions for work-related expenses, making concessional contributions to your superannuation, claiming medical expenses, and donating to registered charities. Work-related deductions can include vehicle and travel expenses, clothing, education, tools, and home office expenses that relate directly to earning your income. Salary packaging and salary sacrificing arrangements can also help reduce your taxable income. Visit our tax reduction guide for more detailed information.
The Goods and Services Tax (GST) rate in Australia is 10%. GST is applied to most goods and services sold or consumed in Australia. Some items are GST-free, such as most basic food items, some medical services, educational courses, and exports. Others are input-taxed, like financial services and residential rent. If you're a business with a GST turnover of $75,000 or more, you must register for GST. Use our GST calculator to quickly add or remove GST from prices.
Capital Gains Tax (CGT) in Australia is calculated by including your net capital gain in your assessable income in the year the asset was sold or disposed of. For assets held longer than 12 months, individuals can generally discount the capital gain by 50%. The rate of tax you pay on capital gains depends on your total taxable income and the applicable income tax rates. The calculation involves subtracting the cost base (what you paid for the asset plus certain costs) from the capital proceeds (what you received when you sold it). Special rules apply for different asset types and situations. Use our capital gains tax calculator for a detailed estimate.
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