Australia (AU)
Australia is the world's sixth-largest country by area and one of the most urbanised nations on Earth, with over 85% of its 27 million people living in coastal cities.
2026 Annual Changes — Australia
Updated thresholds, benefits, and regulatory changes effective this year.
Australia updates a wide range of financial thresholds across the financial year (1 July–30 June). Key 2025-26 updates for expats: the Superannuation Guarantee rate reached its final 12% level from 1 July 2025; minimum wage rose to $24.95/hr; Stage 3 income tax cuts remain in force; HECS repayment moved to a marginal model with a new $67,000 threshold; and Paid Parental Leave extended to 24 weeks. From 1 July 2026 the landmark Payday Super reform takes effect.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Superannuation Guarantee Rate SG rate reached its final legislated level of 12% from 1 July 2025 — permanent, no further scheduled increases | 12% of ordinary time earnings (employer mandatory contribution) | 11.5% (2024-25) | 1 July 2025 (permanent) |
| Payday Super — Payment Frequency Reform From 1 July 2026, employers must pay SG contributions on every payday rather than quarterly — the biggest SG administration change in decades | Super must be paid to the fund on each payday from 1 July 2026. ATO late-payment penalties increase significantly for delayed payments. Employees can verify contributions in real time via myGov. | Quarterly payment (28 days after end of each quarter) | 1 July 2026 |
| National Minimum Wage Fair Work Commission increased the National Minimum Wage by 3.5% from 1 July 2025 | $24.95 per hour; $948.00 per 38-hour week | $24.10/hour; $914.70/week (2024-25) | 1 July 2025 |
| Income Tax — Stage 3 Restructured Brackets Revised Stage 3 tax cuts (legislated in 2024) remain in effect — lower rates for middle incomes | 0% on $0–$18,200; 16% on $18,201–$45,000; 30% on $45,001–$135,000; 37% on $135,001–$190,000; 45% above $190,000 | 19% on $18,201–$45,000 (pre-2024 rates) | 1 July 2024 (ongoing through 2026) |
| Low Income Tax Offset (LITO) LITO unchanged — provides up to $700 tax offset for low incomes | Maximum $700 for incomes up to $37,500; phases to zero at $66,667 | — | 1 July 2024 (ongoing) |
| Medicare Levy Surcharge — Income Threshold MLS threshold increased for 2025-26; high earners without private hospital cover pay 1%–1.5% surcharge | $101,000 (single); $202,000 (family) — surcharge of 1%–1.5% applies if no private hospital cover | $93,000 (single, 2024-25) | 1 July 2025 |
| Private Health Insurance Rebate Government PHI rebate adjusted annually; income tiers updated to match MLS thresholds | Under $101,000 single (Tier 0): approx. 24.6% rebate (under 65). Tier 1 ($101,001–$118,000): ~16.4%. Tier 2 ($118,001–$151,000): ~8.2%. Tier 3 (over $151,000): 0%. | Same tier structure; previous Tier 0 threshold was $93,000 (2024-25) | 1 April 2025 (annual rebate update) |
| HECS-HELP Repayment Threshold Major reform for 2025-26: minimum income threshold raised to $67,000 and system changed to marginal calculation | $67,000 minimum threshold for 2025-26. Repayments calculated only on income above $67,000 (marginal model — not on total income). No repayment required below $67,000. | $54,435 (2024-25); old system applied rate to full income | 1 July 2025 |
| Skilled Migration — Occupation Lists Department of Home Affairs updated occupation lists (MLTSSL/STSOL/ROL) in 2025-26 | Healthcare, ICT, engineering, construction trades, education, clean energy, cyber security, and aged care remain in high demand. Lists updated quarterly — check homeaffairs.gov.au. | — | Updated quarterly — check homeaffairs.gov.au |
| Skilled Migration — Points Test Invitation Scores Invitation scores (Expressions of Interest) remain competitive for subclass 189 | Subclass 189: typically 85–90+ points. State nomination (190): typically 5–15 points lower. Check SkillSelect data at homeaffairs.gov.au for your specific occupation and current round. | — | Monthly invitation rounds |
| Visa Application Charges (VAC) Visa application charges indexed upward from 1 July 2025 | Subclass 189/190 (Skilled): $4,910 (primary applicant). Subclass 482 Skills in Demand: $3,210. Working Holiday (417/462): $670. Student (500): $1,600. | 189: $4,770; 482: $3,035; Working Holiday: $650 (2024-25) | 1 July 2025 |
| FIRB Foreign Investment Fees Foreign Investment Review Board fees for residential property indexed from 1 July 2025 | $15,100 for residential acquisitions up to $1,000,000; $30,200 for $1M–$2M; further tiers above $2M. | $14,100 for under $1M (2024-25) | 1 July 2025 |
| Paid Parental Leave — Extension Government Paid Parental Leave extended in annual steps toward 26-week target | 24 weeks from 1 July 2025; 26 weeks from 1 July 2026 (final step). Payment at National Minimum Wage rate. | 22 weeks (pre-1 July 2025) | 1 July 2025 (24 weeks); 1 July 2026 (26 weeks) |
| Family Tax Benefit Part A — Maximum Rate FTB Part A maximum rate indexed for CPI from 1 July 2025 | $227.36 per fortnight for a child aged 0–12 years; approximately $295/fn for 13–19 years (2025-26) | $222.04 per fortnight for 0–12 years (2024-25) | 1 July 2025 |
| Child Care Subsidy CCS percentage up to 90% for families earning under $80,000; high-activity families can access 100 subsidised hours per fortnight | Maximum subsidy 90% for family income under $80,000. Families doing ≥48 activity hours/fortnight: up to 100 hours subsidised/fortnight. | — | Ongoing from July 2023 changes |
| Age Pension — Rate Age Pension indexed twice yearly (March and September) to CPI and MTAWE | From 20 March 2026: $1,200.90/fortnight single (includes pension supplement and energy supplement); couple combined: $1,810.40/fortnight ($905.20 each) | $1,178.70/fortnight single (from 20 September 2025) | 20 March 2026 (next adjustment September 2026) |
| JobSeeker Payment Rate JobSeeker indexed for CPI in March 2026 — check servicesaustralia.gov.au for current exact rate | Approximately $800/fortnight (single, no children, includes energy supplement) — subject to assets and income tests. | — | March 2026 indexation |
| Student Visa — Work Rights Work rights for student visa holders: 48 hours per fortnight during semester (COVID unlimited work rights ended June 2023) | 48 hours per fortnight during semester; unlimited during official course breaks | — | 1 July 2023 (ongoing) |
| Pacific Engagement Visa Subclass 192 Pacific Engagement Visa — annual ballot for Pacific island and Timor-Leste nationals | 3,000 places per year open to nationals of Pacific Forum Island Countries and Timor-Leste. Balloted program — check homeaffairs.gov.au for opening dates. | — | Annual ballot (commenced 2024) |
| Working Holiday Maker — Third-Year Work Requirement Third Working Holiday Visa (subclass 462 third year) now includes regional tourism and hospitality as qualifying work | Third visa requires 6 months specified work in a designated regional area: agriculture, fishing, mining, construction, bushfire recovery, and tourism/hospitality (regional only). | Agriculture and plant nurseries only (pre-2024) | July 2024 (ongoing) |
| Concessional Super Contribution Cap Annual concessional (before-tax) super contribution cap — unchanged for 2025-26 | $30,000 per year (includes employer SG + salary sacrifice + personal deductible contributions) | $27,500 per year (2023-24) | 1 July 2024 (ongoing) |
| Non-Concessional Super Contribution Cap Annual non-concessional (after-tax) super contribution cap — unchanged | $120,000 per year (or $360,000 over 3 years under bring-forward rule if total super balance under $1.9M) | $110,000 per year (2023-24) | 1 July 2024 (ongoing) |
| Transfer Balance Cap Maximum amount that can be transferred into tax-free pension phase indexed upward | $2,000,000 (from 1 July 2025) | $1,900,000 (2023-24 to 2024-25) | 1 July 2025 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Confirm your employer is paying superannuation at 12% — the final legislated rate effective 1 July 2025.
- 2
Note the Payday Super reform from 1 July 2026: super must be paid on every payday. Check your contributions via myGov in real time.
- 3
Review your private health insurance policy — insurers apply annual premium increases 1 April. Compare at privatehealth.gov.au before April.
- 4
Check if your income is approaching the Medicare Levy Surcharge threshold ($101,000 single). If so, take out hospital cover before end of financial year.
- 5
Review your HECS-HELP balance in myGov > ATO: under the new marginal system repayments apply only on income above $67,000.
- 6
Check the minimum wage if you are on a modern award — it changes 1 July. The current rate is $24.95/hour.
- 7
If you received Family Tax Benefit, update your income estimate to avoid an overpayment debt.
- 8
Check skilled occupation lists at homeaffairs.gov.au if you are planning a visa or employer-sponsored migration pathway.
- 9
Review Centrelink payment rates — most are indexed in March and September.
- 10
Check the ATO for changes to work-related tax deduction rules for the new financial year.
Where to Track Annual Changes
-
Australian Taxation Office — ato.gov.au — tax rates, HECS thresholds, super rules, Payday Super
-
Fair Work Commission — fwc.gov.au — minimum wage updates and modern award changes
-
Services Australia — servicesaustralia.gov.au — Centrelink payment rates and family payment indexation
-
Department of Home Affairs — homeaffairs.gov.au — visa charges, occupation lists, and immigration policy
-
APRA — apra.gov.au — super fund performance data
-
Private Health Australia — privatehealth.gov.au — private health insurance rebate updates
-
FIRB — foreigninvestment.gov.au — foreign investment thresholds and fees
Australia operates on a financial year from 1 July to 30 June. Most tax, wage, and Centrelink changes take effect 1 July. Private health insurance premium changes typically take effect 1 April. HECS debt indexation applies 1 June. Visa fees change 1 July. For significant financial decisions, verify current figures with the ATO, Services Australia, or a qualified Australian financial adviser or registered tax agent.
Annual Changes
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