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Australia tax guide 2026
Australia taxes residents on worldwide income through five brackets topping out at 45%, plus a 2% Medicare levy — but adds a further advantage with a tax-free first AUD 18,200, a 50% discount on capital gains held over a year, dividend franking credits that are refundable in cash, and no inheritance tax at all. Retirement saving runs through the superannuation system, where employers must pay 12% of salary into your fund and the money is taxed at concessional rates.
- Rate range
- 0% – 45% (+ 2% Medicare levy; surcharge up to 1.5% without private health cover)
- Key allowance
- First AUD 18,200 tax-free; 50% capital gains discount after 12 months
- Tax year
- 1 July – 30 June
- Filing deadline
- 31 October following the 30 June year-end (later via a tax agent)
Taxes covered
- Income tax45%
45% above AUD 190,000, plus the 2% Medicare levy — a 47% top marginal rate (48.5% without private health insurance at high incomes).
- Dividend taxMarginal rates − franking
Dividends are taxed at marginal rates, but franking credits for the company tax already paid usually cover much of the bill — and are refunded in cash if unused.
- Capital gains taxMarginal rates, half base
Net gains join income at marginal rates, but a 50% discount applies after 12 months — an effective top rate of about 23.5% on long-held assets.
- Crypto taxMarginal rates, half base
Crypto is a capital gains tax asset: marginal rates on the gain, halved after 12 months of holding; traders and miners pay income rates in full.
- Social security2%
No employee social security contributions — just the 2% Medicare levy inside income tax; retirement is funded by a 12% employer superannuation charge.
- Inheritance tax0%
No inheritance or gift tax anywhere in Australia — capital gains tax is deferred at death rather than charged.
- Withholding tax10% / 30%
Non-residents: 10% on interest, 30% on unfranked dividends and royalties (0% on franked dividends), 15% withheld on property sales — treaties cut most rates.
Special regimes
- Temporary resident exemption
On a temporary visa, foreign income and foreign capital gains are simply outside Australian tax — only Australian-source income and employment earnings count.
- Franking (imputation) credits
Dividends carry credits for the 25–30% company tax already paid; individuals use them against their own tax and are refunded any excess in cash.
- Superannuation
Employers pay 12% of salary into your fund; contributions and fund earnings are taxed at 15%, and withdrawals after age 60 are tax-free.
- No inheritance or gift tax
Estates pass free of death duties; heirs inherit the asset's capital gains history instead of paying tax up front.
- 50% capital gains discount
Hold qualifying assets — shares, property, crypto — more than 12 months and only half the gain is taxed at your marginal rate.
Recent changes
- 2026-07The 18,201–45,000 bracket rate fell from 16% to 15% on 1 July 2026, with a further cut to 14% legislated for 1 July 2027.
- 2025-07The employer superannuation guarantee reached its final legislated rate of 12%.
- 2026-07The concessional super contributions cap rose from AUD 30,000 to AUD 32,500; an additional tax on earnings of very large super balances (AUD 3 million+) was announced to start from 1 July 2026.