The 2026–27 tax cut by salary: who gains what
On 1 July 2026 the rate on income from $18,201 to $45,000 fell from 16% to 15%, and the HECS/HELP repayment threshold rose from $67,000 to $69,528. This report runs both years' rates over 43 salaries, $40,000 to $250,000, with the same engine as the calculator.
$268 a year from $45,000 up
Every one of the 43 salaries pays less tax in 2026–27. 42 of them get the full $268; at $40,000 the cut is $218, $50 less than the maximum, because only part of the band sits below that salary.
Findings
- 5.87%of the 2025–26 tax bill at $40,000, the highest share in the table; at $250,000 the same cut is 0.32%, the lowest.
- $742a year for someone on $130,000 with a HECS/HELP debt: $268 of tax cut plus $474 less in repayments. 10 salaries reach it.
- $8a fortnight at $40,000, rising to $10 a fortnight from $45,000 up. The cut is fixed in dollars, so it shrinks as a share of pay as salaries rise.
The cut at every salary
| Salary | Tax 2025–26 | Tax 2026–27 | Cut a year | A fortnight | Share of 2025–26 tax | Take-home 2026–27 |
|---|---|---|---|---|---|---|
| $40,000 | $3,713 | $3,495 | $218 | $8 | 5.87% | $36,505 |
| $45,000 | $4,863 | $4,595 | $268 | $10 | 5.51% | $40,405 |
| $50,000 | $6,538 | $6,270 | $268 | $10 | 4.1% | $43,730 |
| $55,000 | $8,213 | $7,945 | $268 | $10 | 3.26% | $47,055 |
| $60,000 | $9,888 | $9,620 | $268 | $10 | 2.71% | $50,380 |
| $65,000 | $11,563 | $11,295 | $268 | $10 | 2.32% | $53,705 |
| $70,000 | $13,188 | $12,920 | $268 | $10 | 2.03% | $57,080 |
| $75,000 | $14,788 | $14,520 | $268 | $10 | 1.81% | $60,480 |
| $80,000 | $16,388 | $16,120 | $268 | $10 | 1.64% | $63,880 |
| $85,000 | $17,988 | $17,720 | $268 | $10 | 1.49% | $67,280 |
| $90,000 | $19,588 | $19,320 | $268 | $10 | 1.37% | $70,680 |
| $95,000 | $21,188 | $20,920 | $268 | $10 | 1.26% | $74,080 |
| $100,000 | $22,788 | $22,520 | $268 | $10 | 1.18% | $77,480 |
| $105,000 | $24,388 | $24,120 | $268 | $10 | 1.1% | $80,880 |
| $110,000 | $25,988 | $25,720 | $268 | $10 | 1.03% | $84,280 |
| $115,000 | $27,588 | $27,320 | $268 | $10 | 0.97% | $87,680 |
| $120,000 | $29,188 | $28,920 | $268 | $10 | 0.92% | $91,080 |
| $125,000 | $30,788 | $30,520 | $268 | $10 | 0.87% | $94,480 |
| $130,000 | $32,388 | $32,120 | $268 | $10 | 0.83% | $97,880 |
| $135,000 | $33,988 | $33,720 | $268 | $10 | 0.79% | $101,280 |
| $140,000 | $35,938 | $35,670 | $268 | $10 | 0.75% | $104,330 |
| $145,000 | $37,888 | $37,620 | $268 | $10 | 0.71% | $107,380 |
| $150,000 | $39,838 | $39,570 | $268 | $10 | 0.67% | $110,430 |
| $155,000 | $41,788 | $41,520 | $268 | $10 | 0.64% | $113,480 |
| $160,000 | $43,738 | $43,470 | $268 | $10 | 0.61% | $116,530 |
| $165,000 | $45,688 | $45,420 | $268 | $10 | 0.59% | $119,580 |
| $170,000 | $47,638 | $47,370 | $268 | $10 | 0.56% | $122,630 |
| $175,000 | $49,588 | $49,320 | $268 | $10 | 0.54% | $125,680 |
| $180,000 | $51,538 | $51,270 | $268 | $10 | 0.52% | $128,730 |
| $185,000 | $53,488 | $53,220 | $268 | $10 | 0.5% | $131,780 |
| $190,000 | $55,438 | $55,170 | $268 | $10 | 0.48% | $134,830 |
| $195,000 | $57,788 | $57,520 | $268 | $10 | 0.46% | $137,480 |
| $200,000 | $60,138 | $59,870 | $268 | $10 | 0.45% | $140,130 |
| $205,000 | $62,488 | $62,220 | $268 | $10 | 0.43% | $142,780 |
| $210,000 | $64,838 | $64,570 | $268 | $10 | 0.41% | $145,430 |
| $215,000 | $67,188 | $66,920 | $268 | $10 | 0.4% | $148,080 |
| $220,000 | $69,538 | $69,270 | $268 | $10 | 0.39% | $150,730 |
| $225,000 | $71,888 | $71,620 | $268 | $10 | 0.37% | $153,380 |
| $230,000 | $74,238 | $73,970 | $268 | $10 | 0.36% | $156,030 |
| $235,000 | $76,588 | $76,320 | $268 | $10 | 0.35% | $158,680 |
| $240,000 | $78,938 | $78,670 | $268 | $10 | 0.34% | $161,330 |
| $245,000 | $81,288 | $81,020 | $268 | $10 | 0.33% | $163,980 |
| $250,000 | $83,638 | $83,370 | $268 | $10 | 0.32% | $166,630 |
With a HECS/HELP debt
The repayment threshold rose from $67,000 in 2025–26 to $69,528 in 2026–27, and the bands above it moved with it. Repayments are $379 lower from $70,000 to $125,000, $474 lower from $130,000 to $175,000, $424 lower at $180,000 and $74 lower at $185,000. From $190,000 the repayment is 10% of income in both years, so only the tax cut remains.
| Salary | Repayment 2025–26 | Repayment 2026–27 | Lower by | Total gain with a debt |
|---|---|---|---|---|
| $40,000 | $0 | $0 | $0 | $218 |
| $45,000 | $0 | $0 | $0 | $268 |
| $50,000 | $0 | $0 | $0 | $268 |
| $55,000 | $0 | $0 | $0 | $268 |
| $60,000 | $0 | $0 | $0 | $268 |
| $65,000 | $0 | $0 | $0 | $268 |
| $70,000 | $450 | $71 | $379 | $647 |
| $75,000 | $1,200 | $821 | $379 | $647 |
| $80,000 | $1,950 | $1,571 | $379 | $647 |
| $85,000 | $2,700 | $2,321 | $379 | $647 |
| $90,000 | $3,450 | $3,071 | $379 | $647 |
| $95,000 | $4,200 | $3,821 | $379 | $647 |
| $100,000 | $4,950 | $4,571 | $379 | $647 |
| $105,000 | $5,700 | $5,321 | $379 | $647 |
| $110,000 | $6,450 | $6,071 | $379 | $647 |
| $115,000 | $7,200 | $6,821 | $379 | $647 |
| $120,000 | $7,950 | $7,571 | $379 | $647 |
| $125,000 | $8,700 | $8,321 | $379 | $647 |
| $130,000 | $9,550 | $9,076 | $474 | $742 |
| $135,000 | $10,400 | $9,926 | $474 | $742 |
| $140,000 | $11,250 | $10,776 | $474 | $742 |
| $145,000 | $12,100 | $11,626 | $474 | $742 |
| $150,000 | $12,950 | $12,476 | $474 | $742 |
| $155,000 | $13,800 | $13,326 | $474 | $742 |
| $160,000 | $14,650 | $14,176 | $474 | $742 |
| $165,000 | $15,500 | $15,026 | $474 | $742 |
| $170,000 | $16,350 | $15,876 | $474 | $742 |
| $175,000 | $17,200 | $16,726 | $474 | $742 |
| $180,000 | $18,000 | $17,576 | $424 | $692 |
| $185,000 | $18,500 | $18,426 | $74 | $342 |
| $190,000 | $19,000 | $19,000 | $0 | $268 |
| $195,000 | $19,500 | $19,500 | $0 | $268 |
| $200,000 | $20,000 | $20,000 | $0 | $268 |
| $205,000 | $20,500 | $20,500 | $0 | $268 |
| $210,000 | $21,000 | $21,000 | $0 | $268 |
| $215,000 | $21,500 | $21,500 | $0 | $268 |
| $220,000 | $22,000 | $22,000 | $0 | $268 |
| $225,000 | $22,500 | $22,500 | $0 | $268 |
| $230,000 | $23,000 | $23,000 | $0 | $268 |
| $235,000 | $23,500 | $23,500 | $0 | $268 |
| $240,000 | $24,000 | $24,000 | $0 | $268 |
| $245,000 | $24,500 | $24,500 | $0 | $268 |
| $250,000 | $25,000 | $25,000 | $0 | $268 |
Get the data
Both tables as one CSV: tax-cut-2026-27-by-salary.csv. It is written from the same model that renders this page. Data: Australian Taxation Office; computed by TaxTakeHome.
Method
- Tax is income tax under each year's resident scale, less the low income tax offset, plus the Medicare levy. The same engine runs the take-home calculator and every salary page.
- Every salary here is above the Medicare levy's low-income range, so the full levy applies in both years and the cut is the bracket change alone.
- Super is paid on top of salary and is not part of take-home pay. No Medicare levy surcharge (private hospital cover assumed).
- HECS/HELP repayments use each year's marginal repayment scale on the salary, with no other repayment income.
How the whole scale has moved since 2015–16: the same salary, twelve tax years.
Frequently asked
- How much is the 2026–27 tax cut worth?
- $268 a year at every salary from $45,000 up, because the rate on income from $18,201 to $45,000 fell from 16% to 15%. Below $45,000 it is smaller: $218 at $40,000.
- Who gains most as a share of their tax bill?
- The lowest salary in the table. At $40,000 the cut is 5.87% of the 2025–26 bill; at $250,000 it is 0.32%.
- Does a HECS/HELP debt change the answer?
- Yes. The repayment threshold rose from $67,000 to $69,528, so repayments fell too. With a debt the combined gain reaches $742 a year at $130,000.