personal income tax cuts

The Australian Government has announced additional personal income tax cuts in the 2025–26 Federal Budget. These cuts are designed to provide further financial relief to taxpayers and will be implemented in two stages:

• From 1 July 2026: The tax rate for income between $18,201 and $45,000 will decrease from 16% to 15%.

• From 1 July 2027: This rate will be further reduced from 15% to 14%.

These reductions build upon the initial round of tax cuts introduced on 1 July 2024, aiming to increase disposable income for Australians. For example, a taxpayer earning $50,000 annually is projected to save approximately $268 in the 2026–27 financial year and $536 in the 2027–28 financial year, compared to the 2024–25 tax settings.