2026-27 vs 2025-26 Tax Calculator
See exactly how much you save under the new 15% tax bracket (from 1 July 2026) and the Working Australians Tax Offset.
Your annual salary
How the saving works
1. The 15% bracket
From 1 July 2026, income between $18,201 and $45,000 is taxed at 15% instead of 16%. That's 1% × $26,800 = up to $268 saved if you earn $45,000 or more. If you earn less, you save 1% of your income above $18,200.
2. The Working Australians Tax Offset
A new non-refundable offset worth up to $250, applied automatically when you lodge your tax return. Over 13 million workers benefit. The exact taper is set by the ATO; this calculator uses a reasonable approximation.
Frequently Asked Questions
Two pieces: (1) the second tax bracket drops from 16% to 15% on income between $18,201 and $45,000 (max saving $268), and (2) a new Working Australians Tax Offset of up to $250 applied at tax time.
From 1 July 2026 (the start of the 2026-27 financial year). Your employer's PAYG withholding scales will use the new rates automatically.
It's based on Budget commentary at the time of writing (May 2026). The ATO has not yet published the final taper schedule. We assume full $250 for incomes $45,000-$135,000, phased in below and phased out by $200,000.
The total tax figures shown include the 2% Medicare levy. The bracket change and WATO are both income-tax changes — Medicare levy and HECS/HELP rules are unchanged.
HECS/HELP thresholds and rates are not changed by this Budget measure. Use our salary calculator to model HECS impact on take-home pay.
Related Resources
This calculator estimates the impact of the 2026-27 Federal Budget tax changes. Calculations use ATO bracket rates; the WATO taper is estimated. Subject to passage of legislation. Not financial or tax advice.
Last updated: 25 May 2026