Treasurer Jim Chalmers mentioned a string of “tax cuts” in his federal budget speech, talking up how the measures could put more money into the pockets of working Australians.
These are not payments that will be paid into your bank account, but will instead filter through as savings at tax time.
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And how much those measures could save you depends on your individual circumstances.
We have put together a calculator to help you work out how much income tax you could save thanks to the following measures:
tax bracket changesinstant tax deduction for work-related expensesthe Working Australians Tax Offset (WATO)
But keep in mind that you will not start seeing those savings until you file your tax return next year.
And it is worth remembering the $250 WATO boost does not come into effect until 2028.
It’s also worth noting there are wider changes to the tax system in the budget too — especially for capital gains tax, negative gearing and trusts. Those changes are not included in this calculator, which instead focuses on income tax.
When creating this calculator, we excluded the income tax savings introduced last financial year (2024-25) and changes to the Medicare levy, which changes depending on your age, family status, and how many children you have.
Here is what we did include in the calculator:
Next financial year (2026-27):The 16 per cent tax bracket dropping to 15 per centAddition of instant tax deduction of up to $1,000 for work-related expensesThe financial year after (2027-28):The 15 per cent tax bracket dropping to 14 per centContinuation of the instant tax deduction of up to $1,000 for work-related expensesAddition of the $250 Working Australians Tax OffsetLoading…