Tax Planning

Planning for Australia’s 2025-26 Tax Cuts: What Individuals Should Do Now

Tax cuts announced in the 2025-26 Budget mean rate brackets are changing. Those with earnings at lower rates stand to gain most—but timing and planning could help maximise your benefits now and in future.

By NomadicTax Research Team · 5-8 min read

Overview of the Upcoming Cuts

According to the Australian Taxation Office (ATO), legislation now in law will reduce the personal income tax rate in Australia:

From 1 July 2026, the 16% rate (for certain income brackets) becomes 15%. (ato.gov.au)
From 1 July 2027, the same rate drops further to 14%. (ato.gov.au)

These changes are part of the Cost of Living Tax Cuts Act 2024 and amendments made in the 2025-26 Budget aimed at returning bracket creep and giving relief amid rising costs. (ato.gov.au)

Sources

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