Australian income tax, in plain English
Most Australians pay income tax, but few are ever taught how it works. Tax is withheld from every pay, a return is lodged once a year, and the result is either a refund or a bill — and the rules behind that result are public, written down, and checkable. This site explains them in plain English, with the ATO's own figures for the 2026–27 income year.
Start here, in five minutes
If you are new to Australian tax, start with how Australian income tax works, then look at the 2026–27 tax brackets and rates. If you lodge your own return, read myTax and lodging your return and deadlines and penalties before 31 October. If money is the question, go to common deductions and tax offsets and rebates.
All eleven guides
The system
How Australian income tax works — who pays, what counts as income, PAYG withholding, and the five-step maths from pay to refund. 2026–27 tax brackets and rates — the 0%, 15%, 30%, 37% and 45% brackets, the 16%-to-15% cut, and worked examples. Tax-free threshold and Low Income Tax Offset — the $18,200 threshold and the offset worth up to $700.
Medicare
Medicare levy and surcharge — the 2% levy, low-income thresholds, and the 1%–1.5% surcharge for higher earners without hospital cover.
Lodging
myTax and lodging your return — lodging free through myGov, pre-fill, and what to have ready. Deadlines and penalties — the 31 October deadline, agent dates, and failure-to-lodge penalties of up to $1,650.
Paying less, lawfully
Common deductions — work expenses, car, home office, donations, and the new $1,000 standard deduction. Tax offsets and rebates — LITO, the Seniors and Pensioners Tax Offset, and the private health insurance rebate. Salary sacrifice and super contributions — the 12% Super Guarantee, the $32,500 concessional cap, and key limits (pointers only, no advice).
After you lodge
Refunds and amounts owing — how your notice of assessment works, when refunds arrive, and what to do if you owe. Records to keep — the five-year rule, what to keep, and how to keep it.
What this site will not do
This site will not tell you what to claim, how much tax you owe, or whether a particular arrangement suits you. It is not tax advice, and it is not affiliated with the Australian Taxation Office or the Australian Government. It explains how the system works, what the current figures are, and where to check them — so you can lodge with confidence and know when to ask a registered tax agent. This site covers income tax only. It does not cover the Child Care Subsidy, the Disability Support Pension, the Age Pension, or Austudy — those are covered by their own sites in the TapeToolHQ network.
Sources: Australian Taxation Office (ato.gov.au); Moneysmart (moneysmart.gov.au). Figures are for the 2026–27 income year unless stated otherwise.