Reference · Reviewed 17 August 2026
Australian tax rates & thresholds
Every figure we're asked for, in one place, with the year it applies to stated — and an honest flag where a number depends on legislation still moving.
What changed this year?
Three changes matter most. The super guarantee reached 12% on 1 July 2025. The general interest charge is no longer deductible for income years starting on or after 1 July 2025 — a real cost increase for anyone carrying ATO debt. And the work-from-home fixed rate has been 70 cents since 1 July 2024, though a great deal of published advice still quotes 67c.
- Super guarantee now 12%
- ATO interest no longer deductible
- WFH fixed rate 70c per hour
- Individual brackets unchanged since 1 July 2024
Individual income tax rates
Resident rates for the 2024–25 and 2025–26 income years.
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c per $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c per $1 over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c per $1 over $135,000 |
| $190,001 + | $51,638 + 45c per $1 over $190,000 |
Medicare levy and surcharge
The levy is 2% of taxable income, reduced for low income earners. Surcharge tiers are income-tested and indexed annually — confirm the current year's thresholds before deciding on hospital cover.
| Item | Rate / threshold |
|---|---|
| Medicare levy | 2% of taxable income |
| Levy reduction threshold (single, 2024–25) | around $27,222 — indexed |
| Medicare levy surcharge | 1% – 1.5%, tiered by income |
| Surcharge base tier (2024–25) | singles from $97,000 · families from $194,000 — indexed |
Company tax
Base rate entity: aggregated turnover under $50 million and no more than 80% passive income.
| Entity | Rate |
|---|---|
| Base rate entity | 25% |
| All other companies | 30% |
| Franking credit rate | Matches the rate the company paid |
Superannuation
SG reached its final legislated step on 1 July 2025. Caps and the transfer balance cap are indexed — confirm figures for your income year before contributing.
| Item | 2025–26 |
|---|---|
| Super guarantee rate | 12% of ordinary time earnings |
| SG quarterly due dates | 28 Oct · 28 Jan · 28 Apr · 28 Jul |
| Concessional contributions cap | $30,000 |
| Carry-forward unused cap | Up to 5 prior years, if total super balance under $500,000 |
| Non-concessional cap | $120,000 (bring-forward up to $360,000, balance-tested) |
| Division 293 threshold | $250,000 of income plus contributions |
| Transfer balance cap | $2.0 million (indexed) |
| Maximum contribution base | Quarterly limit per employee — indexed, confirm current figure |
Capital gains tax
| Item | Treatment |
|---|---|
| CGT discount — individuals and trusts | 50% for assets held over 12 months |
| CGT discount — complying super funds | 33⅓% |
| CGT discount — companies | None |
| CGT event date | Generally the contract date, not settlement |
| Small business CGT concessions | 15-year exemption · 50% active asset reduction · retirement exemption · rollover |
| Foreign resident main residence exemption | Generally not available |
GST
| Item | Threshold / rate |
|---|---|
| GST rate | 10% |
| Registration threshold — business | $75,000 GST turnover |
| Registration threshold — non-profit | $150,000 |
| Taxi travel and ride-sourcing | Register from the first dollar |
| Cash accounting eligibility | Turnover under $10 million |
| Quarterly BAS due dates | 28 Oct · 28 Feb · 28 Apr · 28 Jul (agent concessions apply) |
Work-related deduction rates
The two most-used rates, and the two most often quoted out of date elsewhere.
| Item | Rate |
|---|---|
| Work from home — fixed rate | 70c per hour (from 1 July 2024) |
| Vehicle — cents per kilometre | 88c per km, capped at 5,000 km per car |
| Vehicle — log book | 12 consecutive weeks, valid 5 years |
| Substantiation threshold | Written evidence required once total work expenses exceed $300 |
| Laundry without receipts | Up to $150 of the $300 total |
| Car depreciation cost limit (2024–25) | $69,674 — indexed each year |
Penalties and interest
The general interest charge ceased to be deductible for income years starting on or after 1 July 2025 — a material change most competing content hasn't caught up with.
| Item | Amount / effect |
|---|---|
| Penalty unit | $330 (indexed periodically) |
| Failure to lodge penalty | 1 unit per 28 days late, per document, up to 5 units (multiplied for larger entities) |
| General interest charge | Compounds daily · not deductible from 1 July 2025 |
| Shortfall penalties | 25% lack of reasonable care · 50% recklessness · 75% intentional disregard |
| Super guarantee charge | Shortfall + nominal interest + admin fee · never deductible |
| No-ABN withholding | 47% of the payment |
Key lodgement dates
| Obligation | Due |
|---|---|
| Individual return — self lodged | 31 October |
| Individual return — via registered agent | Generally up to 15 May following year |
| Company and trust returns — via agent | Generally 15 May following year |
| STP finalisation declaration | 14 July |
| Taxable payments annual report (TPAR) | 28 August |
| FBT return — self lodged | 21 May (FBT year ends 31 March) |
| Trust distribution resolutions | Before 30 June |
Where figures are uncertain
What we won't pretend to know.
- The instant asset write-off threshold was $20,000 for small business in 2024–25. Its position for later years depends on legislation — confirm before you buy equipment relying on it.
- HELP repayment thresholds are indexed and subject to announced reform. Check the current figure before assuming a repayment.
- The car depreciation limit, maximum contribution base and penalty unit are indexed periodically.
- Medicare levy surcharge tiers are income-tested and indexed annually.
Most competing rate pages state every figure with equal confidence, including the ones that have changed. We’d rather tell you which numbers to verify.
FAQ
Rate questions.
What are the current Australian income tax rates?
For residents: nil to $18,200, then 16% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above that, plus the 2% Medicare levy. These have applied since 1 July 2024. Content quoting 19% or 32.5% brackets predates the 2024 changes.
What is the super guarantee rate now?
12% of ordinary time earnings from 1 July 2025 — the final legislated step. Anything quoting 11% or 11.5% relates to earlier years.
Is the work-from-home rate still 67 cents?
No. It's 70 cents per hour from 1 July 2024. The 67c rate applied to 2022–23 and 2023–24; the 80c shortcut ended in June 2022.
Is ATO interest still tax deductible?
No. For income years starting on or after 1 July 2025, the general interest charge and shortfall interest charge are no longer deductible. That makes paying ATO debt down ahead of other credit materially more attractive than it used to be.
How often do these figures change?
Most are indexed or legislated annually, effective 1 July. We review this page each July and date it. Where a figure depends on legislation still in progress — the instant asset write-off is the usual example — we say so rather than guessing.
Can I rely on this page for my return?
It's a reference, not advice, and thresholds interact with your circumstances. Where a figure will change a decision — a contribution, a purchase, a sale — confirm it with us for your specific income year first.
Ready when you are
Need a figure applied, not just quoted?
Free 15-minute call with a registered agent — we'll tell you which threshold actually affects your decision.