Medicare Levy Thresholds Increased 2.9% for 2026
The Medicare levy threshold 2026 increased by 2.9% in the Federal Budget delivered on 12 May 2026, extending relief to approximately 1 million low-income Australians who would otherwise pay the full 2% levy on their income. The change is modest in dollar terms for any single taxpayer, but it reflects a deliberate policy choice to index the relief thresholds to wage growth and keep them meaningful as wages rise.
Read MoreWorking Australians Tax Offset: $250 Explained
The working Australians tax offset 2026 is official: tonight’s Federal Budget, delivered 12 May 2026, confirmed a permanent new $250 Working Australians Tax Offset (WATO) commencing from 1 July 2027. Approximately 13.3 million workers will benefit — automatically, with no separate claim required. Here is what the measure does, who it covers, and how it layers on top of the other Budget changes already flowing through from 1 July 2026.
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