Every July, the tax rules shift a little, and this year they've shifted more than usual. FY2027 runs from 1 July 2026 to 30 June 2027, and it brings a mix of good news for workers, new paperwork for business owners, and a couple of bigger reforms that are still on their way.
We put together this rundown so you don't have to dig through budget papers and ATO fact sheets yourself. Here's what's actually changing this year, and why it matters to you.
Your Pay Packet Just Got a Bit Bigger
Let's start with the change most people will actually notice: your take-home pay. As of 1 July 2026, the tax rate on income between $18,201 and $45,000 dropped from 16% down to 15%. It doesn't sound like much on paper, but it's real money back in your pocket, worth up to $268 this year.
And there's more coming. The same bracket drops again to 14% from 1 July 2027, which roughly doubles that saving to around $536 a year once it kicks in. The best part? You don't have to lift a finger. Employers update their payroll systems automatically, so the extra cash just shows up in your pay.
No More Digging Through Shoeboxes of Receipts
Here's one we think a lot of clients will love. Starting with the 2026–27 tax year, you can claim up to $1,000 in work-related expenses without producing a single receipt. Think uniforms, stationery, small tools, the sort of everyday costs that used to mean rifling through drawers every June.
If your actual deductible expenses add up to more than $1,000, you're free to claim the real figure instead — this is just a faster option, not a cap. Roughly 6 million Australians are expected to use it, saving an average of about $205 each.
Business Owners: Super Now Gets Paid Every Payday
This is the one to sit up for if you employ staff. Quarterly super payments are gone. From 1 July 2026, you need to pay your employees' super at the same time you pay their wages, and it has to land in their fund within seven business days.
That's a big jump from the old rule, which gave you 28 days after the end of each quarter. On top of the timing change, super is now worked out on "qualifying earnings" rather than the old ordinary time earnings — the two are similar in most cases, but it's worth double-checking your payroll settings match up.
Miss a payment and it's not a slap on the wrist. Penalties under the updated Superannuation Guarantee Charge kick in from the very first late or missed contribution, so this is worth sorting out with your accountant or payroll provider well before your next pay run, not after.
A Small Win on the Medicare Levy
The Medicare levy low-income threshold has gone up by 2.9% this year. It's not the flashiest change on this list, but it means more pensioners, families, and lower-income earners will pay less levy, or none at all.
Property Investors, Keep an Eye on 2027
Two changes won't actually take effect until 1 July 2027, but they're worth planning around now rather than later.
The government has flagged reforms to capital gains tax that would let investors index their cost base for inflation, so you're only taxed on the gain that's real, not the portion that's just inflation.
Separately, negative gearing on residential property is set to be restricted to new builds from mid-2027. If you already owned a property before the May 2026 announcement, you'll be grandfathered in and unaffected. Buying an established property after that date is where the rules start to bite, so timing matters if you're weighing up a purchase.
Small Business Deductions Stay the Same
Not everything is changing. If your business turns over less than $10 million a year, you can still write off eligible assets under $20,000 straight away, which is still one of the simplest ways to manage cash flow when upgrading equipment.
The Bottom Line
Individuals come out ahead this year with a lower tax rate and a much simpler deduction process. Employers, on the other hand, have real work to do getting payroll ready for Payday Super before penalties start applying. And if you're an investor, the property changes coming in 2027 are worth thinking through now, even though they're still a little way off.
If any of this feels overwhelming, or you're just not sure how it applies to your situation, that's exactly what we're here for. Reach out to R&K Taxation Experts and we'll walk you through it in plain English.