For Individuals & Employees
✅ Personal Income Tax Cuts — Already Legislated
Good news that's already locked in. The tax rate on income between $18,201 and $45,000 will reduce from 16% to 15% from 1 July 2026, and further to 14% from 1 July 2027. These cuts have already been legislated and will flow through automatically in your tax return.
✅ $1,000 Instant Work-Related Expense Deduction — From 2026–27
From this tax year, you can claim up to $1,000 in work-related expenses without itemising individual receipts. If your total work-related claims are under $1,000, you simply elect to use the standard deduction — no receipts required. If your claims exceed $1,000, you can still itemise as normal. The ATO estimates this will benefit around 6.2 million workers with an average saving of around $205.
✅ $250 Working Australians Tax Offset — From 2027–28
A new $250 annual tax offset will apply to Australian workers — including sole traders — from the 2027–28 income tax year. It's a modest but permanent reduction in your tax bill each year.
📋 Medicare Levy Low-Income Threshold — Increased
The Medicare levy low-income threshold has been increased by 2.9% from the 2025–26 financial year, providing relief for low-income individuals, families, and pensioners.
