Guide · updated 2026-09-14
What changed on 1 July 2026
The second tax bracket fell from 16% to 15%, super remained at 12%, HECS thresholds moved and Payday Super began. What each change is actually worth.
Income tax, HELP thresholds and super payment timing changed on 1 July 2026. The super guarantee rate stayed at 12%; it had already reached that rate a year earlier.
1. The second tax bracket fell from 16% to 15%
The rate on income between $18,200 and $45,000 dropped by one percentage point. Because it only affects that band, the saving is capped: the reduction in income tax before offsets is $268 for taxable incomes of $45,000 or more. Other parts of the tax calculation can change the final take-home comparison.
| Taxable income | Income tax before offsets, 2025–26 | Income tax before offsets, 2026–27 | Rate-cut difference |
|---|---|---|---|
| $30,000 | $1,888.00 | $1,770.00 | $118.00 |
| $50,000 | $5,788.00 | $5,520.00 | $268.00 |
| $85,000 | $16,288.00 | $16,020.00 | $268.00 |
| $120,000 | $26,788.00 | $26,520.00 | $268.00 |
| $190,000 | $51,638.00 | $51,370.00 | $268.00 |
The rate is legislated to fall again to 14% on 1 July 2027, roughly doubling the saving.
2. Superannuation stayed at 12%
The super guarantee rose from 11.5% to 12% on 1 July 2025. It remains 12% for 2026–27. On $85,000 that is $10,200.00 a year paid into your fund on top of your salary.
3. Payday Super started
Employers must now pay super on every payday rather than quarterly, and the contribution has to reach your fund within seven business days, unless an extended timeframe applies, such as for a new employee.
A quieter change that catches high earners
The maximum contribution base changed shape. It used to be $62,500 per quarter; it is now $270,830 for the whole year. If you earn above that, your employer's obligation now runs out at a point in the year rather than resetting each quarter, so your super can stop mid-year.
4. HECS-HELP thresholds moved
The minimum repayment threshold rose to $69,528. This follows the larger change in 2025-26, when repayments became marginal rather than a percentage of your whole income.
What you keep in 2026-27
Take-home pay
$67,280
a year — $2,588 a fortnight
| Gross salary | $85,000.00 |
|---|---|
| Income tax | $16,020.00 |
| Medicare levy | $1,700.00 |
| HECS-HELP repayment | $0.00 |
| Super paid on top | $10,200.00 |
Where these figures come from
Every number on this page is computed by the same engines that power our calculators, using 2026-27 rates taken from the tax office and dated on our methodology page. If a rate changes, this page changes with it. General information only, not tax or financial advice.
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Put this guide into practice
The $1,000 standard work deduction began
From the 2026–27 income year, eligible resident workers can claim a standard deduction of up to $1,000 against employment income. Specified work-related deductions reduce the remaining standard amount; some other eligible deductions can be claimed in addition. The benefit is reflected in the annual assessment, not automatically as a fixed reduction on every payslip.