2027–28 Tax Year
PreviewLegislated tax rates for 2027–28 including the further reduction to 14% in the second bracket and the new Working Australians Tax Offset.
Legislated Changes
Personal Income Tax (Legislated)
- Second marginal rate further reduced from 15% to 14% on income between $18,201 and $45,000
- All other tax brackets and thresholds unchanged
- Working Australians Tax Offset (WATO): up to $250 (legislated, subject to final confirmation)
Medicare Levy
- Rate remains 2%
- Low-income thresholds expected to be indexed (ATO to confirm mid-2027)
Medicare Levy Surcharge
- Thresholds expected to be indexed (ATO to confirm mid-2027)
- Tier structure (0%, 1%, 1.25%, 1.5%) unchanged
HELP/HECS Repayment
- Thresholds expected to be indexed (ATO to confirm mid-2027)
- Marginal rate system continues from 2025–26
Resident Income Tax Rates
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,200 – $45,000 | 14.000000000000002c for each $1 over $18,200 |
| $45,000 – $135,000 | 30c for each $1 over $45,000 |
| $135,000 – $190,000 | 37c for each $1 over $135,000 |
| $190,000+ | 45c for each $1 over $190,000 |
These rates do not include the 2% Medicare levy. Rates are legislated but pending ATO confirmation for the full income year.
HELP/HECS Repayment Thresholds
| Repayment income | Repayment |
|---|---|
| $0 – $69,528 | Nil |
| $69,528 – $129,717 | $0 + 15c per $1 over $69,528 |
| $129,717 – $186,050 | $9,028 + 17c per $1 over $129,717 |
| $186,050+ | 10% of total repayment income |
From 2025–26, HELP repayments are calculated using marginal rates (not a single flat rate). Repayment income = taxable income + reportable fringe benefits + net investment losses + reportable super contributions + exempt foreign employment income.
Medicare Levy Surcharge Thresholds
| Tier | Rate | Single | Family |
|---|---|---|---|
| Base | 0% | $0 – $105,000 | $0 – $210,000 |
| Tier 1 | 1% | $105,000 – $123,000 | $210,000 – $246,000 |
| Tier 2 | 1.25% | $123,000 – $164,000 | $246,000 – $328,000 |
| Tier 3 | 1.5% | $164,000+ | $328,000+ |
Family thresholds increase by $1,500 for each dependent child after the first. MLS only applies if you do not have appropriate private hospital cover.
Information sourced from the Australian Taxation Office (ATO) and Treasury legislation. All figures are for informational purposes only and do not constitute financial advice. Last updated: July 2026. Check the ATO website for the most current rates.