Resident tax rates 2025–26
| Taxable income | Tax on this income |
|---|---|
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
The above rates do not include the Medicare levy of 2%.
From 1 July 2025, the cents per kilometre rate is 88c for work-related car expenses.
A new guideline is available to help clients to work out the cost of electricity when charging an electric vehicle (EV) from home. Clients can use the EV home charging rate of 4.2c per kilometre.
From 1 July 2025 the Medicare Levy Surcharge thresholds have increased.
| Threshold | Base tier | Tier 1 | Tier 2 | Tier 3 |
|---|---|---|---|---|
| Single threshold |
$101,000 or less |
$101,001-$118,000 |
$118,001-$158,000 |
$158,001 or more |
| Family threshold |
$202,000 or less |
$202,001-$236,000 |
$236,001-$316,000 |
$316,001 or more |
| Medicare levy surcharge |
0% |
1% |
1.25% |
1.5% |
The family income threshold is increased by $1,500 for each MLS dependent child after the first child.
From 1 July 2025, interest charged by the ATO on unpaid tax (including General Interest Charge (GIC) and Shortfall Interest Charge (SIC)) is no longer deductible for all taxpayers. This increases the real cost of carrying tax debt and makes timely lodgement and payment even more important.
The superannuation guarantee contribution rate increases to 12 % from 1 July 2025, impacting employer obligations.
Future changes related to PayDay Super (to start July 2026) will modernise super reporting and payments for employers, aiming to align super contributions with employee pay cycles.
Monthly GST Reporting:
Certain small businesses with a history of non-compliance may be moved from quarterly to monthly GST reporting from 1 April 2025 to improve compliance outcomes.
Taxable Payments Annual Report (TPAR) digital requirement:
From 2025–26, TPARs must be lodged through a supported digital channel rather than paper.
From 1 July 2025, the general transfer balance cap increases from $1.9 million to $2 million (indexation), allowing greater concession space for clients in retirement phase strategies.
The Federal Government has allocated nearly $1 billion in additional funding to expand ATO compliance programs from 1 July 2025, targeting:
Tax Avoidance Taskforce
Shadow Economy Compliance
Personal Income Tax Compliance
Tax Integrity Programs
These initiatives will heighten scrutiny around tax avoidance, under-reporting, and compliance across business sizes.
From 1 January 2025 the foreign resident capital gains withholding (FRCGW) rate increased to 15% and the threshold was removed. It applies to all individual and non-individual vendors (property sellers) selling or disposing of certain taxable real property.
Australian residents selling property need a clearance certificate to avoid having an amount withheld from the sale price.
Types of property include:
The 15% withholding rate applies to the market value of all property contracts signed on or after 1 January 2025, unless the vendor (property seller):
If you are an Australian resident and you didn’t obtain a clearance certificate, you can claim the amount that was withheld in your tax return.