Australia

In March 2025, the government legislated further tax cuts to apply to resident individuals effective from 1 July 2026, and which build upon the existing tax cuts that have been in effect since 1 July 2024. See the Taxes on personal income section for more information.

Under the superannuation guarantee (SG) scheme, employers are required to contribute a certain percentage of an employee's earnings base, subject to limited exceptions, to a registered superannuation fund or retirement savings account on behalf of the employee. From 1 July 2025, the SG percentage is 12% (up from 11.5%) and will remain at this rate permanently.  In addition, from 1 July 2025, superannuation will be paid on government funded paid parental leave. See the Other taxes section for more information.

The state of Victoria has a short stay levy (7.5%) that applies to fees charged for short stay accommodation in a Victorian property from 1 January 2025. A similar levy, the short-term rental accommodation levy, applies at a rate of 5% in the Australian Capital Territory from 1 July 2025. See the Other taxes section for more information.

The Australian government plans to enter into many new and updated tax treaties, with a new treaty with Portugal signed on 30 November 2023 and a new treaty with Slovenia signed on 9 September 2024 (both yet to enter into force). See the Foreign tax relief and tax treaties section for more information.

For contracts entered into from 1 January 2025, a non-final 15% withholding tax (previously 12.5%) applies to the gross proceeds of the sale of taxable Australian property by non-residents. See the Tax administration section for more information.

The Australian Taxation Office (ATO) continues to run a number of targeted income tax compliance programs, the aim of which is to provide greater assurance to the community that high wealth private groups and individuals are paying the right amount of tax. See the Tax administration section for more information.

From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot apply to buy an established dwelling in Australia, subject to limited exceptions. See the Other issues section for more information.