Starting from July 1, 2026, average Australian taxpayers can expect a modest annual saving of $268, equating to approximately $5 per week. This amount is comparable to the cost of a regular flat white coffee. This tax relief, introduced by Treasurer Jim Chalmers in the 2025 Federal Budget, will be visible on payslips from next year.
When looked at over a year, the $268 can cover various expenses. For instance, it represents the average weekly grocery bill, given that Australian households spend about $213.64 weekly on groceries. Thus, by saving the increased amount, you could cover just over one week’s worth of groceries by July 1, 2027—assuming prices remain stable.
In terms of entertainment, the tax cut could also finance over five months of streaming services such as Netflix or Disney+, which typically costs around $50 monthly for the average household.
However, when it comes to essential services like electricity, the impact of the tax cuts varies across states. For example, in Western Australia, where the average quarterly power bill is approximately $245, the tax cut could cover this expense. In contrast, this would likely fall short in other regions.
Public transport fares also illustrate the limited impact of the tax cut. In Queensland, $5 per week will allow for a one-way ticket, but it barely makes a dent elsewhere.
Other everyday purchases that can be managed within this budget include a three-litre bottle of full-cream milk, which costs around $4.35, leaving you with some spare change. Additionally, if you tuck away this tax saving, it may suffice for travel insurance on a single trip, which averages $204 annually for one person or up to $265 for senior travellers.
Overall, while the federal government’s tax relief offers some benefits, its limited scope underscores the challenges faced by everyday Australians in managing rising costs.