Tax
Australian Tax Codes Explained
Short answer
Australia does not use UK-style PAYE tax codes. Your withholding is set by your TFN declaration, your tax residency, whether you claim the $18,200 tax-free threshold, the ATO withholding schedules, the 2% Medicare levy and any HELP/STSL debt. Without a TFN your employer must withhold at 47%.
If you have moved from the UK
There is no letter-and-number tax code in Australia. Instead, when you start a job you complete a TFN declaration that tells your employer your residency and whether to apply the tax-free threshold. That, plus the ATO withholding tables, sets your PAYG.
What changes your withholding
Providing a TFN, claiming the tax-free threshold, your residency, and any HELP/STSL debt all change how much is withheld. See how PAYG withholding works.
Frequently asked questions
What replaces the tax code in Australia?+
Your TFN declaration and the ATO withholding schedules - there is no tax code.
Do I need a tax code to start work?+
No. You lodge a TFN declaration with your employer instead.
Why is my tax different from the UK?+
Different brackets, the Medicare levy, super and HELP/STSL all differ from the UK system.
Sources & methodology
- ATO - Personal income tax: new tax cuts (15% rate from 1 July 2026)
- Income Tax Rates Act 1986 (legislation.gov.au)
- ATO - Study and training loan repayment thresholds and rates
- ATO - Super guarantee
- ATO - Contribution caps
- ATO - Payday Super and the annual maximum contribution base
- ATO - Medicare levy
- ATO - Medicare levy surcharge income thresholds and rates
- Fair Work Ombudsman - Pay slips
- How we calculate these estimates
Last updated 13 August 2026. Figures use the 2026-27 financial year.
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