As announced, the new Tax Offset Boost will subsidize everyday costs for many low and middle income earning Australians with amounts between 350 and 1,200 Australian dollars in the 2025–26 financial year.
Offset Amounts
- Eligible individuals will receive between 350 and 1,200 AUD annually.
- Low income earners (taxable income up to 45,000) will receive 1,200 AUD.
- Middle income earners receive between 800 and 1,200 AUD depending on income level.
- Upper middle income earners (over 126,000) experience a tapering toward 350 AUD.
Offset Applies Automatically
No separate application is required. The offset will be applied when the taxpayer files a tax return for the 2025–26 year.
Eligibility
- Australian resident for tax purposes.
- Taxable income within the defined brackets and a filed tax return.
- Pensioners, part time workers, carers, and lower income Australians may receive a proportional amount.
Purpose
The offset is intended to help households manage rising costs such as rent, groceries, fuel, and utilities by increasing disposable income and providing a financial buffer.
Benefits to Australians
- Reduces tax bills, which can increase refunds or lower tax payable.
- Helps households cope with cost of living pressures following recent inflation.
- Works alongside other rebate programs such as energy and fuel support.
- Supports consumer spending and overall economic stability.
When and How the Offset is Received
The offset will be available as part of tax assessments for the 2025–26 year. The Australian Taxation Office will begin processing refunds that include the offset from July 2026. Taxpayers should ensure income and deductions on their returns are accurate to receive the correct amount.
Summary Table: 2025–26 Tax Offset Details
| Income Range (Taxable) |
Estimated Offset Amount AUD |
Notes |
| Up to 45,000 |
Up to 1,200 |
Full offset for low income earners |
| 45,001 to 90,000 |
Around 800 to 1,200 |
Varies with income level |
| 90,001 to 126,000 |
Around 350 to 800 |
Offset tapers off near top threshold |
| Above 126,000 |
350 tapering or 0 |
Offset reduces for highest earners |
This temporary tax offset boost is designed to provide automatic, meaningful financial relief to many Australian households through the tax return system for the 2025–26 year.
