What changed in your pay on 1 July 2026
Updated 26 September 2026 · figures from the ATO and official sources
The 2026–27 financial year started on 1 July 2026. For most workers the change you’ll notice is a little more in each pay, from a cut to the lowest tax rate.
1. The 16% tax rate is now 15%
Income between $18,201 and $45,000 is now taxed at 15% instead of 16%. Because every taxpayer earning over $18,200 has income in that band, almost everyone gets something. The saving tops out at $268 a year once you earn $45,000 or more.
| Salary | 2025–26 take-home | 2026–27 take-home | Extra a year | Extra a fortnight |
|---|---|---|---|---|
| $30,000 | $28,613 | $28,731 | +$118 | +$4.54 |
| $45,000 | $40,137 | $40,405 | +$268 | +$10.31 |
| $60,000 | $50,112 | $50,380 | +$268 | +$10.31 |
| $80,000 | $63,612 | $63,880 | +$268 | +$10.31 |
| $100,000 | $77,212 | $77,480 | +$268 | +$10.31 |
| $150,000 | $110,162 | $110,430 | +$268 | +$10.31 |
| $200,000 | $139,862 | $140,130 | +$268 | +$10.31 |
Figures are for an Australian resident with no HECS debt, including the Medicare levy. The rate is legislated to fall again, to 14%, from 1 July 2027.
2. HECS-HELP repayments start at $69,528
The repayment threshold rose from $67,000 to $69,528. Since 2025–26 you only repay 15 cents for each dollar above the threshold, rather than a percentage of your whole income. How HECS repayments work now.
3. Super: 12%, a higher cap, and Payday Super
- The super guarantee stays at 12%.
- The concessional (before-tax) contributions cap rose from $30,000 to $32,500, so you can salary sacrifice more.
- Employers must now pay super at the same time as wages, and it must reach your fund within 7 business days. What Payday Super means.
4. Minimum wage up 4.75%
The national minimum wage is now $26.44 an hour, or $1,004.90 for a 38-hour week, from the first full pay period starting on or after 1 July 2026. Award rates rose by the same 4.75%.
5. Medicare levy surcharge thresholds
Singles without private hospital cover now pay the surcharge from $105,000 of income, up from $101,000.
What to check
Compare a payslip from before and after 1 July. If your tax withheld didn’t go down, ask your payroll team whether they’ve updated to the 2026–27 tax tables.
General information only, not financial or tax advice. See our disclaimer.