The Stage 3 Tax Cuts in Australia
The revised Stage 3 tax cuts dramatically adjust the tax rate brackets for Australian residents. They reduce the 19% rate to 16%, and expand the 30% tax bracket threshold up to $135,000.
2026 Tax Brackets
- $0 - $18,200: 0%
- $18,201 - $45,000: 16%
- $45,001 - $135,000: 30%
- $135,001 - $190,000: 37%
- $190,001+: 45%
Additional Levies to Watch Out For
- Medicare Levy: A flat 2.0% of taxable income applies to fund the public health system (with low-income phase-in limits below $32,500).
- Medicare Levy Surcharge (MLS): If you earn more than $97,000 as a single and do not have private hospital health insurance, you will pay an additional surcharge of 1% to 1.5%.
Action Plan: Check Your Pay Slip
- Estimate Take-Home Pay: Use our Australian Income Tax & Medicare Levy Calculator to check your net pay and effective tax rate dynamically.
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