Australia — PAYG, Superannuation, Medicare, GST, Company Tax 2025-26
💰 PAYG Withholding (Income Tax + Medicare Levy)
Australia uses a progressive tax system with 5 brackets (16%-45%). Tax-free threshold: A$18,200. Plus 2% Medicare Levy on taxable income. Australia taxes worldwide income for residents. FY 2025-26 rates.
A$
📌 PAYG 2025-26:5 Brackets (Resident): 0% (≤A$18,200) → 16% → 30% → 37% → 45% (≥A$190,001). Medicare Levy: 2% of taxable income (low-income earners may be exempt or reduced). Medicare Levy Surcharge (MLS): 1-1.5% extra if single income >A$93,000 / family >A$186,000 without private hospital cover. Non-residents: No tax-free threshold; 30% on first A$135,000, then 37%/45%. CGT discount: 50% for residents holding assets >12 months. LITO: Low Income Tax Offset up to A$700 (phases out above A$66,667). Tax year: July 1 to June 30. Return due October 31 (or March 31 via tax agent). Minimum wage: A$24.95/hour (A$948.60/week).
📊 Australia Tax Rates Overview 2025-26
Tax Type
Rate
Details
Income Tax (Nil)
0%
A$0 – A$18,200 (tax-free threshold)
Income Tax (Low)
16%
A$18,201 – A$45,000
Income Tax (Mid)
30%
A$45,001 – A$135,000
Income Tax (High)
37%
A$135,001 – A$190,000
Income Tax (Top)
45%
Above A$190,000
Medicare Levy
2%
All taxable residents
Medicare Surcharge
1-1.5%
High income, no private cover
Superannuation (SG)
12%
Employer contribution
GST
10%
Goods & Services Tax
Company Tax (General)
30%
Standard corporate rate
Company Tax (Small biz)
25%
Turnover < A$50 million
Payroll Tax
4-7%
State-based employer tax
Workers' Comp
1-5%
Employer, by industry/state
FBT
47%
Fringe Benefits Tax
CGT (Resident discount)
50% off
Assets held >12 months
📌 Tax System Overview:
Australia has a worldwide income tax system for residents. The tax system is administered by the ATO (Australian Taxation Office). Key features: no state income tax (all income tax is federal); GST is collected by the federal government and distributed to states; Superannuation is a mandatory employer contribution (not deducted from salary). 2025-26 Stage 3 tax changes: The tax brackets were restructured from July 2024 — the 30% bracket was widened to A$45,001–A$135,000 (previously A$45,001–A$120,000), and the 37% bracket starts at A$135,001 (previously A$120,001). Future change (July 2026): The lowest rate may reduce from 16% to 14%.
🏦 Superannuation Calculator (Retirement Savings)
Superannuation Guarantee (SG): Employers must contribute 12% of ordinary time earnings to employee's super fund. Quarterly cap: A$62,500. Employees can make additional voluntary contributions via salary sacrifice.
A$
📌 Superannuation 2025-26:SG Rate: 12% (from July 1, 2025, up from 11.5%). Quarterly cap: A$62,500 per quarter (A$250,000/year maximum base). Concessional contributions cap: A$30,000/year (includes SG + salary sacrifice). Tax on contributions: 15% within the fund. Preservation age: 60 (can access super tax-free after turning 60 and retiring). Transfer balance cap: A$1.9 million (maximum in retirement phase). Investment returns: Taxed at 15% in accumulation phase; 0% in retirement phase. Insurance: Most super funds include default life insurance and income protection. Choice of fund: Employees can choose their own super fund. Portable: Super follows you when you change jobs.
🧾 GST Calculator (Goods & Services Tax)
Australia GST standard rate: 10%. Registration threshold: A$75,000/year turnover. GST is included in the price (price-inclusive). Input tax credits available for business purchases.
A$
📌 GST 2025-26:10% (Standard): Most goods, services, and digital products. GST-inclusive pricing: All consumer prices include GST. To extract GST: divide by 11 (e.g., A$110 price → A$10 GST). Registration threshold: A$75,000/year (businesses); A$150,000/year (non-profits). GST-free items: Basic food (bread, milk, fruit, vegetables), medical services, education, childcare, financial services. Input tax credits: Registered businesses can claim GST paid on purchases. BAS (Business Activity Statement): Quarterly (or monthly) reporting of GST collected and claimed. Low-value imported goods: GST applies to goods under A$1,000 imported from overseas (since July 2018). New residential premises: Buyer must remit GST directly to ATO.
🏢 Company Tax (Corporate Income Tax)
Corporate tax rate: 30% (general). Small business entities (turnover < A$50M): 25%. Plus payroll tax (state-based), FBT, and workers' compensation.
A$
🏠 Payroll Tax + Workers' Compensation
Payroll tax: 4-7% (state-based, employer only). Workers' compensation: 1-5% (by industry risk). FBT: 47% on non-wage benefits.
A$
📌 Corporate & Employer Tax Notes:Company Tax (30%/25%): Small business entities (aggregated turnover < A$50M) get 25% rate. Losses can be carried forward indefinitely. CGT: Companies get 33.3% discount (not 50% like individuals) on assets held >12 months. Payroll Tax: State-based, varies significantly. NSW: 5.45% above A$1.2M; VIC: 4.9% above A$650K; QLD: 4.75% above A$1.1M; WA: 5.5% above A$1M; SA: 4.95% above A$1.5M. Workers' Comp: 1-5% employer-paid, varies by industry risk and state. FBT (47%): Applies to non-wage benefits (cars, entertainment, loans). Fringe benefits taxable amount: gross-up by type 1 (1.8868) or type 2 (1.7471). ATO: Australian Taxation Office — administers all federal taxes. TFN: Tax File Number required for all taxpayers. ABN: Australian Business Number for entities.