Australian income tax uses a progressive (marginal) system. Each dollar is taxed at the rate of the bracket it falls into — not your entire income at the top rate.

Example earning $70,000:
• $0–$18,200 = $0 tax-free
• $18,201–$45,000 = $5,092 at 19%
• $45,001–$70,000 = $8,125 at 32.5%
• Total = $13,217 before offsets

Stage 3 cuts remain in effect: $0–$18,200 (0%), $18,201–$45,000 (19%), $45,001–$120,000 (32.5%), $120,001–$180,000 (37%), $180,001+ (45%). Medicare levy of 2% applies on top. See the full Tax Brackets page.

The LITO reduces tax for lower income earners: max offset $700 for incomes up to $37,500. Phases out between $37,500 and $66,667. The LMITO ended in 2022–23 and no longer applies.

The Medicare Levy is an additional 2% of your taxable income that funds Australia's public healthcare system. Most Australian residents pay it on top of income tax. Exempt below $26,000 (singles).

The MLS is an additional 1%–1.5% for high-income earners without private hospital cover. Singles earning above ~$93,000 without private hospital cover pay the surcharge.

Repayments start once your income exceeds $56,358 in 2025–26. They are made through the ATO via PAYG withholding or your annual tax return.

Yes. HECS/HELP debt is indexed annually on 1 June based on the lower of CPI or the Wage Price Index (WPI). From 2025 the WPI cap limits indexation. If repayments are too low, your debt can still grow.

The Super Guarantee (SG) increased to 12% on 1 July 2025 — the final step in the legislated schedule. This is now the permanent rate with no further increases planned.

Super inclusive (package): $100,000 package ≈ $89,286 salary + $10,714 super (12%).
Super exclusive: $80,000 salary + $9,600 super on top = $89,600 total.
Always check your contract — this significantly affects your take-home pay.