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Picture Book · Tax in depth

Climbing the steps

Story pages

A woman in her mid thirties with a dark ponytail jogging along a riverside path in Brisbane
Meet Priya. She's 34, a physiotherapist, and earns $90,000 a year.
The bottom step of a wide timber staircase leading up a grassy garden slope
For 2026-27, there's no income tax on the first $18,200 of a resident's income.
A staircase of five broad stone steps climbing a hillside
Each dollar from $18,201 to $45,000 is taxed at 15%, then 30% up to $135,000, 37% up to $190,000 and 45% above that.
A small glass jar being filled with water to a line
Only the dollars inside each step are taxed at that step's rate, so a pay rise never shrinks your take-home pay overall.
A neat stack of smooth river stones on a timber table beside a pot plant
Priya's income tax is about $17,520, plus the 2% Medicare levy. From 1 July 2027 the 15% rate falls to 14%. That change is already law.
A woman in her mid thirties with a dark ponytail sitting on a park bench with a coffee
Knowing her top rate helps Priya weigh up extra work and salary sacrifice.

The end

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Next story: The first $18,200

General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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