Sydney Casual Labourer Tax Brackets 2026 (with $1,400/wk Worked Example)
2026-27 tax rates for Sydney casual labourers: the new 15% bracket, the 2% Medicare levy, residents vs backpackers, and a $1,400/wk worked example (about $266 withheld).
2026-27 resident tax rates (ATO), for a Sydney casual labourer:
- $0–$18,200: nil (tax-free threshold)
- $18,201–$45,000: 15c per dollar (down from 16c from 1 July 2026) 📊
- $45,001–$135,000: 30c per dollar
- $135,001–$190,000: 37c · $190,001+: 45c
- Plus the 2% Medicare levy, already built into weekly withholding
- On $1,400/wk: about $266 withheld, about $1,134 to the bank
- Backpackers (WHM): 15% from the first dollar to $45,000, no threshold
On a $1,400 week, about $266 comes out before you see a dollar.
That's not the agency skimming. It's PAYG tax plus Medicare levy, sent straight to the ATO.
The ATO takes its cut at the door, not the agency.Know the brackets and tax time stops being a surprise. This guide covers the 2026-27 rates, the $1,400 maths line by line, and the traps that cost labourers the most.
Table of Contents
- What are the 2026-27 tax brackets?
- How much tax comes out of $1,400 a week?
- Resident or working holiday maker?
- What is the TFN declaration trap?
- What happens with two agencies?
- Why is a mid-year start refund so big?
- How does the Medicare levy work?
- Is super taken out of your pay?
- Which deductions do labourers miss?
- Frequently Asked Questions
What are the 2026-27 tax brackets?
Australia uses marginal rates. Each dollar is taxed at the rate of the bracket it lands in, not your top bracket.
So a pay rise can't "cost you money". Only the dollars above each threshold get the higher rate.
From 1 July 2026, the 16% bracket dropped to 15% under legislated tax cuts. The ATO says it falls again to 14% from 1 July 2027.
Here are the 2026-27 resident rates from the ATO:
| Taxable income | Tax on this income (2026-27) |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 15c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,020 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,020 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,370 plus 45c for each $1 over $190,000 |
Most residents add the 2% Medicare levy on top.
Gross more than about $866 a week all year and part of your pay is taxed at 30 cents.That's because $45,000 ÷ 52 weeks = $865.38.
How much tax comes out of $1,400 a week?
About $266 a week for a resident who claims the tax-free threshold, on 2026-27 rates. That's an estimate from the annual brackets. Your payslip figure comes from the ATO's weekly tax table and can differ by a few dollars.
Here's the maths for a casual grossing $1,400 for a 38-hour week.
| Step | Calculation | Amount |
|---|---|---|
| Annualised gross | $1,400 x 52 | $72,800 |
| First $18,200 | Nil | $0 |
| $18,201 to $45,000 | $26,800 x 15% | $4,020 |
| $45,001 to $72,800 | $27,800 x 30% | $8,340 |
| Income tax for the year | $12,360 | |
| Medicare levy | $72,800 x 2% | $1,456 |
| Total for the year | $13,816 | |
| Per week | $13,816 ÷ 52 | $265.69 |
The low income tax offset phases out to nil at $66,667 (ATO), so it doesn't apply at this income.
On $1,400 a week, you cross into the 30% bracket in week 33 of the financial year.
From there, each extra hour is taxed at 30c plus 2c Medicare: 32 cents in the dollar at the margin.
The bracket cut to 15% is worth $268 a year at this income: 1 cent on each of the 26,800 dollars in that band.
Resident or working holiday maker?
Everything above is for Australian residents for tax purposes. Backpackers on a 417 or 462 visa are taxed on a separate scale.
| Resident (2026-27) | Working holiday maker (2026-27) | |
|---|---|---|
| First $18,200 | Nil | 15% |
| Up to $45,000 | 15% over $18,200 | 15% |
| $45,001 – $135,000 | 30% | 30% |
| Tax-free threshold | Yes, with one payer | No |
| Source | ATO resident rates | ATO Schedule 15 |
One catch: an employer must be registered with the ATO as a WHM employer to withhold at 15%. If not, they must withhold 30% from the first dollar.
The full WHM breakdown, including when the 15% rate isn't what it seems, is in our working holiday tax guide.
What is the TFN declaration trap?
Day one with an agency, you fill in a TFN declaration.
One question decides your weekly cash: "Do you want to claim the tax-free threshold from this payer?"
- Tick yes: your tax follows the maths above.
- Tick no: tax is withheld from your first dollar, so more comes out every week.
- No TFN at all: your employer must withhold at the top rate, 47% for residents including Medicare.
⚠️ No TFN yet? Apply at ato.gov.au before your first shift. If you've applied, you generally have 28 days to give your employer the number before the top rate kicks in.
What happens with two agencies?
Plenty of Sydney labourers work for two agencies. One for site work, another for warehouse shifts.
The ATO rule: claim the tax-free threshold with one payer only. Usually the one paying you the most.
What goes wrong: workers tick "yes" with both. Each agency then withholds as if it's your only job.
At tax time, the ATO sees too little was withheld. Now you owe, usually right when you least want a bill.
Second payer? Tick "no threshold". Every time.
Why is a mid-year start refund so big?
The financial year runs 1 July to 30 June. Your weekly tax is withheld as if you'll earn that pay all year.
So a resident who only works part of the year is usually over-taxed along the way.
Worked example: a resident starts in March on $1,400 a week and works 16 weeks to 30 June (2026-27 rates).
| Step | Amount |
|---|---|
| Gross ($1,400 x 16) | $22,400 |
| Withheld (about $266 x 16) | about $4,256 |
| Tax on $22,400: ($22,400 − $18,200) x 15% | $630 |
| Less low income tax offset (up to $700) | $0 tax |
| Medicare levy at this income | Likely nil (low-income reduction) |
| Likely refund | close to $4,256 |
The Medicare levy low-income threshold for singles was $28,011 in 2025-26 (ATO), and it's indexed upward each year.
Backpackers don't get this effect: WHMs have no tax-free threshold, so 15% from the first dollar is roughly what they owe.
How does the Medicare levy work?
The Medicare levy is 2% of taxable income for most residents.
It is withheld weekly. The ATO's standard weekly tax table already includes it. Older guides that say otherwise are wrong.
At tax time, the ATO squares the levy up against your actual income:
- Low incomes get a reduced levy or none. The thresholds are indexed each year.
- Higher incomes without private hospital cover may also pay the separate Medicare levy surcharge. Check the current thresholds on the ATO page.
Is super taken out of your pay?
No. Plenty of new starters reckon it is.
Super is paid on top of your gross, by your employer, into your fund. It doesn't reduce take-home and it doesn't touch PAYG.
The rate is 12% of ordinary time earnings from 1 July 2025. On a $1,400 week of ordinary hours, that's $168 into your fund.
Overtime is generally not ordinary time earnings, so super isn't owed on those dollars (ATO).
Inside the fund, employer contributions are taxed at 15% on the way in. That's why your super statement shows a bit less than your payslips added up.
💡 Lost super check: every new employer may open a new fund unless you give them yours on day one. Log into myGov, go to ATO, then Super, and look for old accounts to consolidate.
Which deductions do labourers miss?
The ATO lets you claim work-related expenses that you paid for yourself and that relate to earning your income.
In the 30% bracket, each $1,000 of deductions cuts about $320 off your tax (30c income tax plus 2c Medicare).
Keep the receipts. Legit work deductions come straight back at tax time.What you can't claim: everyday clothes, the drive to your usual workplace, or lunch on a normal workday.
Keep a receipts folder on your phone. Twenty minutes of admin a year.
For how tax plays out when you're on an ABN instead, read PAYG vs ABN: which pays more after tax. For the full pay picture, see the Sydney labourer pay guide.
What Leap does (and doesn't do)
Leap is a Sydney labour hire company. We pay weekly, withhold PAYG, report your wages to the ATO through Single Touch Payroll, and your income statement appears in myGov after 30 June.
We don't do your tax return. That's you, a registered tax agent, or myGov. What we do is make sure your TFN declaration is filed and your payslip is clear.
Chasing steady hours? Browse labourer jobs in Sydney or register to work with Leap.
Frequently Asked Questions
What are the 2026-27 tax brackets for a Sydney casual labourer?+
For Australian residents in 2026-27: $0 to $18,200 is tax-free, $18,201 to $45,000 is taxed at 15c per dollar, $45,001 to $135,000 at 30c, $135,001 to $190,000 at 37c, and over $190,000 at 45c (ATO). Most residents also pay a 2% Medicare levy.
How much tax is withheld from $1,400 a week?+
About $266 a week for a resident who claims the tax-free threshold, using 2026-27 rates and the 2% Medicare levy. That leaves roughly $1,134 in the bank. Your exact figure comes from the ATO weekly tax table, which can differ by a few dollars.
Is the Medicare levy taken out of my weekly pay?+
Yes. The ATO's standard weekly tax table already includes the 2% Medicare levy, so it is withheld every pay. It is then squared up against your actual income when you lodge your return.
Do backpackers pay the same tax as residents?+
No. Working holiday makers on 417 or 462 visas pay 15% from their first dollar up to $45,000, then 30% on the next band (ATO 2026-27). There is no $18,200 tax-free threshold, and the employer must be registered as a WHM employer to withhold at 15%. More in our working holiday tax guide.
Why do I get smashed on tax with two labour hire agencies?+
You claim the tax-free threshold with one payer only. The second payer withholds tax from your first dollar, so more comes out each week. If you claim it with both, you will likely owe the ATO at tax time.
What happens to my tax if I start work mid-financial-year?+
Your weekly tax is withheld as if you earned that pay all year, but the $18,200 threshold is annual. A resident who starts in March on $1,400 a week can see most or all of the tax withheld come back as a refund.
What if I don't give my agency a TFN?+
If you haven't provided a TFN or applied for one, the ATO requires your employer to withhold at the top rate: 47% for residents, including the Medicare levy. If you have applied, you generally have 28 days to give your employer the number.
Is super taken out of my pay?+
No. Super is paid by your employer on top of your gross, at 12% of ordinary time earnings from 1 July 2025. On a $1,400 week of ordinary hours that is $168 into your fund, with no reduction in take-home pay.
