Budget 2026 — Household Impact Calculator
See exactly how much better or worse off your household will be under the 2026–27 Federal Budget. Tax cuts, HECS repayment changes, Division 296 and RBA rate moves — all in one number.
Showing confirmed changes only. The 2026–27 Budget was delivered on 12 May 2026. This calculator reflects all announced measures — tax rate cut, HECS repayment restructure, and Division 296 super tax. Some measures are subject to passage of legislation.
Your Household
Positive = rate rose (costs more). Negative = rate cut (saves money). Leave at 0 to show Budget impact only.
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How the Budget 2026 changes affect your household
This calculator adds up every Budget measure relevant to your household — income tax cuts, HECS repayment changes, Division 296 super tax — and shows you a single net number. You can also model the RBA rate impact on your mortgage alongside the Budget, so you see the full picture rather than just the government's talking points.
Income tax cut — up to $268/year for everyone
The 2026–27 Budget reduces the marginal tax rate on income between $18,201 and $45,000 from 16% to 15%. The maximum saving is $268 per year ($5.15/week) for anyone earning above $45,000. For a couple both earning over $45,000, the combined saving is $536/year.
HECS repayment restructure — lower ongoing repayments
The 20% HECS debt reduction already happened in June 2025. This calculator uses your current balance. The 2026–27 change is to how repayments are calculated: instead of paying a percentage of your full income, you now pay only on income above the $67,000 threshold. For most HECS holders earning $70,000–$100,000, this significantly reduces annual repayments.
Division 296 — only for super balances over $3M
A new 15% additional tax applies to super fund earnings on balances above $3 million from 1 July 2026. This affects approximately 80,000 Australians. If your balance is below $3M, ignore this toggle entirely.
The full picture: Budget + RBA
The Budget gives most Australians $268–$536/year. But a 0.25% rate rise on a $600,000 mortgage costs $1,500/year. Enable the mortgage toggle and enter a rate change to see how much the RBA giveth or taketh alongside what the government is delivering.
Frequently asked questions
How much better off am I under the 2026-27 Budget?
It depends on your income and circumstances. Everyone earning over $45,000 gets a $268/year tax cut. If you have HECS debt, your annual repayments are lower under the new marginal model. If your super balance exceeds $3M, Division 296 may make you worse off. Use the calculator above to see your specific household's net position.
When do the 2026-27 tax changes take effect?
The income tax rate cut takes effect from 1 July 2026. Your employer's payroll system will automatically update PAYG withholding — you don't need to do anything. If you're a sole trader or contractor, the ATO will adjust your PAYG instalment amounts. The HECS repayment restructure also applies from 1 July 2026.
Does the Budget affect my mortgage repayments?
Not directly — mortgage rates are set by the RBA and lenders, not the Budget. However, the Budget tax cut of $268–$536/year can partially offset higher mortgage costs. Enable the mortgage toggle in the calculator and enter a rate change percentage to see how Budget savings and rate movements interact for your specific loan balance.
Has my HECS debt already been reduced?
Yes — the ATO automatically applied a 20% reduction to all outstanding HECS-HELP, VSL, and SSL balances on 1 June 2025. Your current balance in myGov already reflects this. Enter your current balance in this calculator. The separate 2026–27 change is a restructure of how annual repayments are calculated.
What is Division 296 super tax?
Division 296 is a new 15% additional tax on super fund earnings attributable to balances above $3 million, starting 1 July 2026. Controversially, it applies to unrealised gains — notional increases in value even if assets haven't been sold. The calculator estimates Div 296 liability at a 7% assumed annual return on the balance above $3M.
Does this calculator include the Medicare Levy?
Yes. The Medicare Levy (2% of taxable income) is included in both 2025–26 and 2026–27 calculations. The Budget did not change the Medicare Levy rate, so it shows no change in the results. The Medicare Levy Surcharge for high earners without private health cover is not included — see our Medicare Levy calculator.