Corporate DeskSign inSign up

Taxes

Australia — Tax: Income Tax

Australia has a progressive income tax system, with a tax-free threshold and multiple tax brackets. Relocating individuals should be aware of these rates and thresholds to plan their finances accordingly. However, specific tax rates and thresholds may vary depending on individual circumstances.

VerifiedGovernment / official sourceAustralian Taxation Office (ATO) individual resident tax rates for 2025-26 (unchanged from prior year, confirmed current through 30 June 2026)Last reviewed: 2026-08-30

Key facts

  • The Australian income tax year runs from July 1 to June 30.
  • Residents are taxed on their worldwide income, while non-residents are taxed only on Australian-sourced income.
  • For 2025-26, Australian residents pay no tax on the first AUD 18,200, then 16% from AUD 18,201-45,000, 30% from AUD 45,001-135,000, 37% from AUD 135,001-190,000, and 45% above AUD 190,000 (rates exclude the 2% Medicare levy). Non-residents have no tax-free threshold and different bracket rates.

Steps

  1. Understanding Tax Residency — To determine tax residency, individuals must consider factors such as the length of stay, intention to remain, and economic ties to Australia. The Australian Taxation Office (ATO) provides guidelines for determining tax residency.
  2. Registering for a Tax File Number (TFN) — Individuals must register for a TFN to work in Australia and pay taxes. The ATO provides information on how to apply for a TFN.
  3. Reporting and Paying Taxes — Taxpayers must lodge an annual tax return and pay any tax owing by the due date. The ATO provides resources for lodging tax returns and paying taxes online.

Costs

  • Tax Return Preparation Fees: varies, but often around AUD 100-500

Timelines

  • Processing Time for Tax Refund: 4-12 weeks

Required documents

  • Tax File Number (TFN)
  • Australian driver's license or passport (for proof of identity)

Common mistakes

  • Failing to register for a TFN or lodges a tax return on time
  • Incorrectly claiming deductions or credits

AI confidence note (remove before publishing)

The information provided is based on publicly available information from the Australian Taxation Office (ATO) and other reputable sources. While efforts have been made to ensure accuracy, specific tax rates, thresholds, and processing times may be subject to change and may vary depending on individual circumstances.

← Back to Australia guides