Income tax
The tax rate on the $18,201 to $45,000 bracket dropped from 16% to 15% for FY2026-27, a legislated cut from the 2025-26 Federal Budget. It follows an earlier cut in the same bracket, from 19% to 16%, that took effect 1 July 2024. Every other bracket is unchanged. Use the Income Tax Calculator to see the effect on your take-home pay.
HELP and HECS repayments
Compulsory HELP repayments use a marginal band system: no repayment below the minimum repayment threshold, 15% on income in the next band, 17% on income above that, and 10% of total income above the top threshold. This replaced the old flat-percentage system from 1 July 2025 and remains the current method for FY2026-27. The dollar thresholds themselves are indexed annually. Model your own repayment with the HECS / HELP Repayment Calculator.
Superannuation
The Superannuation Guarantee (SGC) rate holds steady at 12% for FY2026-27. This is its final legislated rate, reached in FY2025-26 after a series of scheduled annual increases, and there are no further increases currently legislated. The concessional (pre-tax) contributions cap is $32,500 for FY2026-27, which includes employer SGC, salary sacrifice, and any personal contributions you claim as a deduction. The non-concessional cap is $130,000 per year, or up to $390,000 using the three-year bring-forward rule for eligible members. Project your balance with the Superannuation Calculator or model a pre-tax contribution with the Salary Sacrifice Calculator.
Medicare levy
The standard Medicare levy stays at 2% of taxable income, with a low-income shade-in below $32,500. The Medicare Levy Surcharge (an additional 1% to 1.5%) still applies to higher earners without private hospital cover, based on income thresholds that are indexed annually. Because the exact surcharge thresholds move each year, check the current figures at ato.gov.au before assuming last year's numbers still apply.
Government thresholds and schemes
Outside tax and super, the Australian Government's 5% Deposit Scheme (formerly the First Home Guarantee) had its income caps and place limits removed from October 2025, significantly broadening who can buy with a 5% deposit and no Lenders Mortgage Insurance. This is a recent change rather than one specific to FY2026-27, but it remains in effect and is worth knowing if you are planning a purchase this year. See the First Home Buyer Guide for the full picture.