What changed for tax on your pay from 1 July 2026

Updated 13 November 2026.

A few changes took effect on 1 July 2026 that affect the tax taken from your pay and how your super is paid.

The 16% rate dropped to 15%

The tax rate on income between $18,201 and $45,000 fell from 16% to 15%, so most people have slightly less tax withheld from each pay. It's legislated to fall again, to 14%, from 1 July 2027.

New tax tables

The ATO published new withholding formulas for pays made from 1 July 2026. They apply to any pay made on or after that day, even if part of the pay period was worked in June.

Super paid every payday

Under Payday Super, employers now have to pay super within 7 business days of each payday instead of quarterly. The super guarantee rate stays at 12%.

Medicare levy low-income threshold

In the 2026–27 withholding tables, no Medicare levy is withheld for singles earning up to $28,011 a year, and it's phased in up to $35,013.

See your new take-home pay with the pay calculator.