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Personal income tax - new tax cuts for every Australian taxpayer

The Government announced they will deliver new tax cuts to every Australian taxpayer.

Last updated 27 March 2025

As part of the 2025-26 Federal Budget, the Government announced from 1 July 2026 they will deliver new tax cuts to every Australian taxpayer. The new tax cuts aim to provide more cost-of-living relief and return bracket creep. This measure is now law.

The new tax cuts will apply from:

• 1 July 2026, the 16 per cent rate will be reduced to 15 per cent.

• 1 July 2027, the 15 per cent rate will be reduced further to 14 per cent.

These tax cuts are in addition to the first round of tax cuts that were announced by The Hon Anthony Albanese MP on 25 January 2024External Link.

For more information see:

QC104015