Top Tax Changes 2025-26

Note that, in some cases, implementation of these changes may be dependent on the future passage of the necessary legislation.

From 1 July 2025, the top threshold of the 16% personal income tax bracket is $45,000 and the top threshold of the 30% bracket is increased from $120,000 to $135,000
From 1 July 2025, changes to the government-funded Paid Parental Leave (PPL) scheme allow primary carers to access parental leave pay more flexibly, particularly birth mothers and adoptive parents who are self-employed or small business owners
Study and training repayment thresholds and rates for 2025–26, from repayment income of $67,001: 15c for each $1 over $67,000. From $125,001 – $179,285 repayment amount is $8,700 plus 17c for each $1 over $125,000 and for repayment income of $179,286+, Repayment amount is $10% of your total repayment income
The indexed amount of the Dependant (Invalid and) Tax Offset (DICTO) for the 2025–26 income year is $3,396
The low income tax offset (LITO) for the 2025–26 income year is $700. The amount receivable, depends on your taxable income. The maximum offset is payable is you earned $37,500 or less. The partial offset is reduced to $0, if you earned more than $66,667.

For 2025/26 the Concessional Superannuation Cap is $30,000. (Subject to the work test being satisfied for contributions made between the ages of 67 to 75)
For 2025/26 the Non-Concessional Superannuation Cap is $120,000. (Not subject to the work test being satisfied for contributions made between the ages of 67 to 75)
For 2025/26 the minimum Income Stream draws that must be taken by 30/06/2026 are as follows: Under 65 (4%), 65-74 (5%), 75-79 (6%), 80-84 (7%), 85-89 (9%), 90-94 (11%), 95 or more (14%)
For 2025/26 The Superannuation Guarantee rate increases to 12% from 01/07/2025

For private companies with a regular 30 June balance date, the Div 7A benchmark interest rate for 2025–26 is 8.37%
The threshold for immediate write-off for assets (also known as instant asset write-off) for small businesses has been extended to $20,000 until 30 June 2026

The luxury car tax threshold for 2025–26 is $69,674 and the fuel-efficient car limit for 2020–21 is $91,387