Australia Income Tax Rates for Individuals and Companies: 2018-19 and 2026-27

Australia uses a progressive income tax system for individuals and separate corporate income tax rules. This guide preserves the historical 2018-19 tax rates and explains the tax rules applicable in the 2026-27 income year. Australian income years normally run from 1 July to 30 June. All amounts are in Australian dollars (AUD).

Australian resident individual tax rates for 2026-27

Under Income Tax Rates Act 1986, Schedule 7, as amended by the Treasury Laws Amendment (More Cost of Living Relief) Act 2025, the 16% bracket was reduced to 15% from 1 July 2026.

The ordinary Medicare levy is generally 2% of taxable income, subject to exemptions, reductions and thresholds. Some taxpayers may also owe the Medicare levy surcharge. See ATO Medicare levy guidance.

Foreign resident income tax

Foreign residents generally have no tax-free threshold and are generally not liable for the Medicare levy. For 2026-27, the ordinary foreign resident marginal rates are 30% up to $135,000, 37% for the portion above $135,000 to $190,000 and 45% above $190,000. Special rules, treaties and temporary-resident provisions may alter the outcome. See the ATO foreign resident tax rates.

Historical Australian resident income tax rates for 2018-19

The following rates applied to residents for the income year ended 30 June 2019, before Medicare levy and offsets.

The standard Medicare levy was 2% where applicable. The temporary budget repair levy had ended on 30 June 2017.

Historical foreign resident tax rates for 2018-19

Foreign residents generally did not pay the Medicare levy.

Working holiday makers: visas 417 and 462

Special rules apply to working holiday makers holding Working Holiday (subclass 417) or Work and Holiday (subclass 462) visas. Registered employers generally withhold at the special working holiday maker rates. In 2018-19, these were:

For 2026-27, a registered employer generally withholds 15% on the first $45,000 and foreign resident withholding rates above that threshold. The applicable final tax may depend on residence and treaty non-discrimination rules, including the High Court decision in Addy v Commissioner of Taxation. See ATO guidance for employers.

Company income tax: 2018-19 and current rates

Section 23 of the Income Tax Rates Act 1986 establishes company tax rates. Section 23AA defines a base rate entity; eligibility involves the aggregated turnover threshold and the share of base rate entity passive income. For 2018-19 the turnover threshold was $50 million and the lower rate was 27.5%. For recent income years, eligible base rate entities generally pay 25%, while other companies generally pay 30%.

These are general company rates; specialist entities can have different treatment. See ATO company tax rates and historical tables.

Special company and fund categories

Life insurance companies

For the historical 2018-19 classification, ordinary-class taxable income was generally subject to 30% tax and complying superannuation-class taxable income to 15%. Additional tax can apply to no-tax-file-number contributions. Life insurer taxation is subject to special statutory rules and should not be treated as an ordinary company-rate calculation.

Retirement savings account providers

RSA providers other than life insurers generally had a 15% rate for the RSA component, with a separate standard taxable-income component subject to the applicable company rate. Additional tax on no-TFN contributions requires separate calculation.

Pooled development funds

Historical pooled development fund categories included a 15% rate for eligible SME investment income and a 25% rate for unregulated investment income, with other income potentially subject to company-rate rules. These categories require checking the specific fund's status and applicable legislation.

Credit unions

In 2018-19, credit union rules distinguished small, medium and large credit unions. Small and large credit unions were generally subject to the ordinary company rate (27.5% for qualifying base rate entities or 30% otherwise). For medium credit unions, special rates of 41.25% or 45% could apply to the relevant taxable income component. Certain mutual interest income of approved small credit unions could qualify for exemption, subject to statutory conditions.

Not-for-profit companies

Non-exempt not-for-profit companies historically had special thresholds and rates. For 2018-19, ordinary-rate companies had nil tax up to $416, 55% for taxable income from $417 to $915 and 30% above $915; qualifying base rate entities had nil tax up to $416, 55% from $417 to $831 and 27.5% above $831. The stepped rates must be interpreted using the ATO's special not-for-profit company tables; income-tax-exempt entities are treated differently. Consult the ATO historical company tax tables before applying any historical threshold.

Key definitions and legislative framework

Taxable income: assessable income less allowable deductions under the Income Tax Assessment Act 1997, subject to applicable rules. Tax resident: a person classified as resident for Australian income tax purposes under the relevant statutory and case-law tests; citizenship alone does not decide residence. Base rate entity: a company meeting the requirements of section 23AA of the Income Tax Rates Act 1986, including turnover and passive-income conditions. PAYG withholding: amounts withheld from payments to employees and certain other payees toward their income tax liabilities.

Official Australian tax resources

• ATO individual income tax rates
• ATO foreign resident tax rates
• ATO company income tax rates
• ATO tax withheld calculator
• Income Tax Rates Act 1986

This article provides general information, not an assessment of any taxpayer's individual liability. Historical and current tax years must not be mixed. Confirm eligibility, offsets, special rates and amendments with the ATO or a registered Australian tax professional.