Australian Tax Changes 2026-27 — 15% Bracket, 12% Super and a $26.44 Minimum Wage
Published: 2026-08-26 · ATO, Fair Work Commission
Three things changed for Australian workers on 1 July 2026: the lowest marginal tax rate dropped from 16% to 15%, the Superannuation Guarantee settled at its final 12%, and the National Minimum Wage jumped 6% to $26.44 an hour. Here is what each one does to your pay.
Lowest marginal rate
15%
Super Guarantee
12%
National Minimum Wage
$26.44/hr
1. 2026-27 resident tax rates
| Taxable income | 2025-26 | 2026-27 |
|---|---|---|
| $0 – $18,200 | 0% | 0% |
| $18,201 – $45,000 | 16% | 15% |
| $45,001 – $135,000 | 30% | 30% |
| $135,001 – $190,000 | 37% | 37% |
| $190,001+ | 45% | 45% |
The Medicare Levy stays at 2% of taxable income. Because the cut applies to a band everyone passes through, the saving is capped: once you earn above $45,000 the benefit is the same flat amount regardless of income. A further cut to 14% on that band is legislated for 1 July 2027.
2. What it is worth to you
| Salary | Income tax 2025-26 | Income tax 2026-27 | Saving | Super (12%) |
|---|---|---|---|---|
| $50,000 | $5,788 | $5,520 | −$268 | $6,000 |
| $75,000 | $13,288 | $13,020 | −$268 | $9,000 |
| $100,000 | $20,788 | $20,520 | −$268 | $12,000 |
| $150,000 | $36,838 | $36,570 | −$268 | $18,000 |
| $200,000 | $56,138 | $55,870 | −$268 | $24,000 |
Income tax only — the Medicare Levy is excluded from this comparison. Super is an employer contribution paid on top of your salary, not deducted from it.
🇦🇺 Calculate your 2026-27 take-home pay
Enter your salary and get income tax, Medicare Levy, super and weekly / fortnightly / monthly take-home using the 2026-27 rates.
Australia Salary Calculator →3. Superannuation Guarantee: 12% is the end of the road
The SG rate reached 12% on 1 July 2025 and there is no further legislated increase — 12% is now the permanent rate. On a $100,000 salary that is $12,000 a year going into your fund. Remember the concessional contributions cap includes employer contributions, so higher earners should check headroom before adding salary sacrifice on top.
4. Minimum and award wages
The Fair Work Commission's Annual Wage Review lifted the National Minimum Wage to $26.44 per hour ($1,004.90 per week) from the first full pay period on or after 1 July 2026 — a 6% rise from $24.95. All modern award minimum wages rose 4.75%, and casual employees on the NMW must receive at least $33.05 per hour including the 25% loading.
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Sources: Australian Taxation Office (tax rates — Australian residents), Fair Work Commission Annual Wage Review 2026-27, Fair Work Ombudsman.