Key ATO Thresholds
FY2025-26 numbers you should know
Income Tax Thresholds
The brackets that determine how much tax you pay
Tax-Free Threshold
The first $18,200 you earn is tax-free.
Example
Earn $60,000? You only pay tax on $41,800 (the amount above $18,200).
Tax Brackets (FY2025-26)
$0-$18,200: 0% | $18,201-$45,000: 16% | $45,001-$135,000: 30% | $135,001-$190,000: 37% | $190,001+: 45%
Example
Earn $90,000? Your tax is: $0 + $4,288 + $13,500 = $17,788 (before Medicare).
Medicare Levy
2% on top of income tax — with some exemptions
Medicare Levy (2%)
Most taxpayers pay 2% of taxable income for Medicare.
Example
Earn $80,000 — Medicare levy is $1,600.
Medicare Levy Surcharge
Extra 1-1.5% if you earn over $93,000 (single) and don't have private hospital cover.
Example
Earn $100,000 with no private health? Extra $1,000 surcharge. Private health may be cheaper.
Low-Income Reduction
If you earn under ~$26,000 (single), you pay reduced or no Medicare levy.
Example
Earn $24,000? Your Medicare levy is reduced. Earn under $24,276? No levy at all.
Superannuation
Contribution caps and guarantee rate
Super Guarantee Rate
Your employer must pay 12% of your ordinary earnings into super.
Example
Salary is $80,000 — your employer pays $9,600 into your super on top.
Concessional Contributions Cap
The maximum pre-tax super contributions (employer + salary sacrifice + personal deductible) per year.
Example
Employer puts in $9,600, you salary sacrifice $10,000 = $19,600 total. Still under the $30,000 cap.
Non-Concessional Cap
After-tax contributions you put into super (already taxed money).
Example
Want to boost your super with savings? You can add up to $120,000/year after tax.