Tax Cuts for 2027 and 2028 years

Personal Income Tax Cuts 

For the 2027 and 2028 years, every Australian taxpayer will receive a tax cut of $268 from 1 July 2026 and a further $268 from 1 July 2027. This is in addition to the tax cut introduced from 1 July 2025.
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.

While the financial impact is relatively modest, estimated at approximately $5 per week in 2027 and a further $5 per week in 2028, the change aims to mitigate bracket creep and lower average tax rates, particularly for low- and middle-income earners. Under these reforms, the average tax rate for an individual earning the national average wage is not expected to exceed 2023-24 levels until at least 2031-32.