Australia income tax 2026-27: rates, Medicare levy and lodging

Australia’s income year runs 1 July to 30 June. Employers withhold tax through PAYG, and you lodge a return after the year ends.

Resident tax rates 2026-27

Taxable income	Tax
$0 – $18,200	nil
$18,201 – $45,000	15c for each $1 over $18,200
$45,001 – $135,000	$4,020 + 30c for each $1 over $45,000
$135,001 – $190,000	$31,020 + 37c for each $1 over $135,000
over $190,000	$51,370 + 45c for each $1 over $190,000

In 2025-26 the second rate was 16%.

Medicare levy

2% of taxable income on top of income tax, reduced or waived for low incomes. The Medicare levy surcharge (for people without private hospital cover) is a separate charge.

Who must lodge (2025-26)

You must lodge if you had tax withheld, your taxable income was over $18,200, you ran a business, or you are a foreign resident with Australian taxable income. Other triggers are listed on the ATO page.

Deadlines

• Lodge 2025-26 yourself: 31 October 2026. Registered tax agents can lodge later. Needs review for the agent dates.
• 2026-27: 31 October 2027 is a Sunday. Needs review.

Super and GST

• Superannuation guarantee: employers pay 12% of earnings into your super. From 1 July 2026 it is paid each payday.
• GST: 10% on most goods and services. Register when GST turnover reaches $75,000 ($150,000 for non-profits).

Moving from India

If you move from India to Australia, both countries’ rules can apply in the year you move.

• Check your Indian status for that year in Residential status. It decides whether India taxes only your Indian income or your worldwide income.
• Savings accounts usually need to change to NRO/NRE accounts. See NRI bank accounts.
• Money you send abroad before you leave falls under the Liberalised Remittance Scheme. See Foreign remittance (LRS).
• If both countries tax the same income, India’s tax treaty with Australia may give relief. Read the treaty text before you rely on it.