Guides to tax on your pay

Plain explanations of how tax is taken out of your pay in Australia, with worked numbers for 2026–27.

• The tax-free threshold: what it is and when to claim it

  The first $18,200 you earn each year is tax-free. Here's how claiming it changes the tax taken from your pay, and why you normally claim it from one employer only.

• Payday Super: paying super with every pay from 1 July 2026

  From 1 July 2026 employers must pay super within 7 business days of each payday instead of quarterly. What changed, the deadlines and what happens if you're late.

• Tax on a second job

  Why more tax comes out of a second job, how much more, and how to avoid a tax bill at the end of the year.

• What happens if you don't give your employer a TFN

  Without a tax file number your employer must withhold tax at the top rate: 47% for residents and 45% for foreign residents. Here's what that looks like and how to fix it.

• Tax withheld for foreign residents

  Foreign residents can't claim the tax-free threshold and don't pay the Medicare levy. The 2026–27 withholding rates and worked examples.

• How your employer works out the tax on your pay

  The exact method employers and payroll software use to work out tax withheld: weekly equivalents, the ATO formula and the rounding rules.

• Weekly, fortnightly or monthly pay: does it change your tax?

  How much tax is withheld can differ by a few dollars a year depending on how often you're paid. Why, and what happens in years with 53 weekly or 27 fortnightly pays.

• What changed for tax on your pay from 1 July 2026

  The 16% tax rate dropped to 15% on 1 July 2026, super now has to be paid every payday, and new tax tables apply. What it means for your take-home pay.

• Tax on a bonus: how much is withheld and why

  How employers work out the tax withheld from a bonus, why it can look high, and what you actually pay at tax time. With worked amounts for 2026–27.

• Is overtime taxed more? How tax on overtime works

  Overtime isn't taxed at a special rate, but more tax is withheld from pays with overtime in them. Here's why, how much, and whether super is paid on overtime.

• The low income tax offset (LITO)

  The low income tax offset cuts the tax of anyone earning under $66,667 by up to $700. How it's calculated, who gets it, and a table of amounts for 2026–27.

• The Medicare levy and the Medicare levy surcharge

  The 2% Medicare levy, who pays less, and the Medicare levy surcharge of 1% to 1.5% for higher earners without private hospital cover. Thresholds for 2025–26 and 2026–27.

• Salary including super: what a package means for your pay

  Some jobs quote a total package that includes the 12% super guarantee. How to work out the base salary, super and take-home pay from a package, with examples.

• The seniors and pensioners tax offset (SAPTO)

  SAPTO lets eligible seniors and pensioners earn more before paying tax. Maximum offsets, income thresholds for singles and couples in 2026–27, and how it changes tax withheld.

• How much tax do I pay? Marginal and average tax rates

  Tax for the year, average tax rate and marginal rate for salaries from $30,000 to $250,000 in 2026–27, and why a pay rise never leaves you worse off.

• Why do I owe tax? Common reasons for a tax bill

  Got a tax bill instead of a refund? The usual causes, from two jobs and HELP debts to income with no tax withheld, with worked examples and how to avoid it next year.

• Tax for casual workers

  How tax is withheld from casual pay, why it changes week to week, super for casuals, and what happens with more than one casual job. With 2026–27 examples.