Does the calculator use the new 15% rate from 1 July 2026?

Yes, the second income bracket uses the reduced rate of 15% that came into force on 1 July 2026, cut from the previous 16% under the More Cost of Living Relief Act 2025.

Is the Medicare levy included?

Yes, the 2% Medicare levy is included with low-income shading that phases it in gradually from nil below $28,011.

How is superannuation treated in the calculation?

The super guarantee of 12% is shown separately as an employer payment. When your package includes super, the calculator divides the total package by 1.12 to find the salary portion.

Australia Methodology 2026-27

Australia methodology (2026-27)

Income tax (residents)

Taxable income	Rate
$0, $18,200	0%
$18,201, $45,000	15% (cut from 16% on 1 July 2026)
$45,001, $135,000	30%
$135,001, $190,000	37%
Above $190,000	45%

Low income tax offset: $700, tapering at 5% from $37,500 and 1.5% from $45,000. Foreign residents: 30% from the first dollar. Working holiday makers: 15% to $45,000, then resident rates.

Medicare levy

2% with low-income shading (nil below $28,011, then 10 cents per dollar until the full 2% applies). The shading threshold is the 2025-26 single value; 2026-27 thresholds are set retrospectively in the Budget. The Medicare levy surcharge (no private hospital cover) is not yet modelled.

Study loans (HELP/STSL)

The marginal system: 15c per dollar of repayment income between $69,528 and $129,717, 17c above, capped at 10% of repayment income. Salary-sacrificed super counts toward repayment income.

Super

Super guarantee 12%, shown separately as an employer payment; "package includes super" divides the package by 1.12.

Source and verification

Brackets per the More Cost of Living Relief Act 2025; thresholds per ATO 2026-27 schedules. Automated tests cover LITO tapering, Medicare shading, the STSL cap and residency variants. Annual-liability view; the ATO's per-period withholding schedules differ slightly by design and are reconciled at tax return time.