27/05/2026
๐ข Proposed Changes for Individual Taxpayers
The 2026โ27 Federal Budget includes a range of proposed measures aimed at providing cost of living relief and simplifying the tax system for individuals.
๐ Key Proposed Changes
โ๏ธ Working Australians Tax Offset
From the 2028 income year, the Government proposes introducing a permanent $250 tax offset for individuals earning employment or sole trader income.
โ๏ธ $1,000 Standard Work-Related Deduction
From the 2027 income year, eligible taxpayers may be able to claim a standard deduction of up to $1,000 for work-related expenses without needing to keep receipts or itemise deductions. Taxpayers with higher expenses can still claim actual costs under the existing rules.
โ๏ธ Previously Announced Tax Cuts
The Budget confirms the previously legislated tax cuts, with the 16% tax rate reducing to 15% from 1 July 2026 and further reducing to 14% from 1 July 2027.
โ๏ธ Medicare Levy Threshold Increases
Medicare levy low-income thresholds are proposed to increase by 2.9% from 1 July 2025 for singles, families, seniors, and pensioners.
โ๏ธ Private Health Insurance Rebate Changes
From 1 April 2027, the Government proposes removing the additional age-based Private Health Insurance rebate currently available to individuals aged 65 and over.
โ ๏ธ These measures are proposals only and are not yet law.
Please contact our office if you would like to discuss how these proposed changes may affect your personal tax position.
