About taxes in Australia

Australia's tax year runs from 1 July to 30 June. For 2025/26, residents enjoy a tax-free threshold of AUD 18,200, then progressive rates of 16% (to AUD 45,000), 30% (to AUD 135,000), 37% (to AUD 190,000) and 45% above — these are the post-"Stage 3" brackets that took effect 1 July 2024. On top of income tax, residents pay a 2% Medicare Levy funding public healthcare, and an additional Medicare Levy Surcharge of 1–1.5% applies to higher earners without private hospital cover. Foreign residents (those who don't meet the ATO residency tests, e.g. short-term assignees) lose the tax-free threshold entirely and pay 30% from the first dollar, with no Medicare Levy. Superannuation — the mandatory retirement contribution — is 12% of ordinary earnings from 1 July 2025, paid by the employer on top of your salary, so it doesn't reduce take-home pay (we exclude it here). HELP/HECS student loan repayments are deducted via PAYG when income exceeds AUD 56,156, with rates climbing from 1% to 10%. Toggle the residency, Medicare exemption, and HELP debt switches to see how each changes your monthly net. Pay is typically fortnightly or monthly with PAYG withholding, and an annual return reconciles in July–October via myTax.