Understanding the latest tax rates and thresholds can help individuals, investors and business owners make better financial decisions and avoid unexpected tax liabilities.
Below is a practical overview of several important Australian tax rates and thresholds for the **2025–26 income year**, based on the attached tax rates guide.
## Individual Income Tax Rates
For Australian resident individuals, the 2025–26 tax rates are:
| Taxable income | Tax payable |
| ——————– | ——————————————-: |
| $0 to $18,200 | Nil |
| $18,201 to $45,000 | 16% of the amount over $18,200 |
| $45,001 to $135,000 | $4,288 plus 30% of the amount over $45,000 |
| $135,001 to $190,000 | $31,288 plus 37% of the amount over $135,000 |
| More than $190,000 | $51,638 plus 45% of the amount over $190,000 |
These rates do not include the Medicare levy.
## Medicare Levy and Private Health Insurance
The general Medicare levy remains **2% of taxable income**, subject to income-based exemptions and reductions.
Individuals and families without appropriate private hospital insurance may also be required to pay the Medicare levy surcharge when their income exceeds the relevant threshold.
For 2025–26, the base income thresholds for the surcharge are:
* **$101,000 for singles**
* **$202,000 for families**
The family threshold increases for additional dependent children.
## Company Tax Rates
The company tax rate depends on whether the company qualifies as a base rate entity.
* **25%** for eligible base rate entities
* **30%** for other companies
A company will generally need an aggregated turnover below $50 million and no more than 80% of its assessable income to be passive income to qualify for the lower rate.
Business owners should review their company’s income composition before assuming the 25% rate applies.
## Superannuation Contributions
The compulsory superannuation guarantee rate increased to **12% from 1 July 2025**.
The main superannuation contribution caps for 2025–26 are:
* Concessional contributions cap: **$30,000**
* Non-concessional contributions cap: **$120,000**
* Capital gains tax contribution cap: **$1.865 million**
Individuals may be able to make additional contributions under the carry-forward or bring-forward rules, depending on their age, total superannuation balance and previous contributions.
## Capital Gains Tax
Individuals and trusts may generally receive a **50% capital gains tax discount** where an eligible asset has been held for more than 12 months.
Complying superannuation funds may generally receive a discount of **33⅓%**.
The CGT discount does not automatically apply to every asset or taxpayer. Different rules may apply to companies, foreign residents, depreciating assets and property used to produce income.
Accurate purchase records, improvement costs, legal fees and selling expenses should be retained to support the calculation of the asset’s cost base.
## Fringe Benefits Tax
The fringe benefits tax rate for 2025–26 is **47%**.
The applicable gross-up rates are:
* Type 1 benefits: **2.0802**
* Type 2 benefits: **1.8868**
Employers should carefully review motor vehicles, entertainment, employee loans, expense payments and other non-cash benefits provided to employees and directors.
Even where no FBT is ultimately payable, reporting or record-keeping obligations may still apply.
## Small Business Concessions
Different turnover thresholds apply to different small business tax concessions.
Depending on the concession, the relevant aggregated turnover threshold may be:
* less than $2 million;
* less than $5 million;
* less than $10 million; or
* less than $50 million.
For example, the small business CGT concessions generally use a lower threshold than concessions relating to simplified trading stock, GST reporting or certain FBT exemptions.
Businesses should not assume that qualifying for one small business concession means they qualify for all concessions.
## HELP Repayments
Compulsory Higher Education Loan Program repayments for 2025–26 generally commence when repayment income exceeds **$67,000**.
The repayment amount increases progressively as income rises. Repayment income can include more than taxable income, so investment losses, reportable fringe benefits and reportable superannuation contributions may affect the calculation.
## Plan Ahead for Your Tax Obligations
Tax rates are only one part of effective tax planning. Your final tax position may also be affected by:
* deductions and depreciation;
* capital gains and losses;
* trust distributions;
* superannuation contributions;
* private health insurance;
* Division 7A loans;
* investment structures; and
* eligibility for tax offsets and business concessions.
Reviewing these matters before the end of the financial year can provide more opportunities than waiting until the tax return is prepared.
## Contact WNR Business Consulting
WNR Business Consulting provides taxation, accounting, business advisory and SMSF services to individuals, property investors and small to medium-sized businesses.
For assistance with your 2025–26 tax return or year-end tax planning, contact:
**WNR Business Consulting**
**Eugene Dou CPA – Registered Tax Agent**
Phone: 0402 500 543
Email: [eugene.dou@wnrbc.com.au](mailto:eugene.dou@wnrbc.com.au)
Website: [www.wnrbc.com.au](http://www.wnrbc.com.au)
*Disclaimer: This article is provided by WNR Business Consulting for general information and promotional purposes only. It does not constitute taxation, financial or legal advice. Tax laws and thresholds may change, and their application depends on individual circumstances. Professional advice should be obtained before making financial or taxation decisions.*