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Australia Financial Glossary

Learn the definitions of key financial terms, tax acronyms, and mortgage jargon commonly used in Australia. Updated for 2026.

Australian financial terms for the payday super and working holiday era

From July 2026, Australia's superannuation system includes payday frequency contributions, a new 15% tax bracket under Stage 3 reforms, and specific tax schedules for working holiday makers. Division 293 continues to apply an extra 15% on high-income super contributions above $250,000. These terms cover the 2026-27 rules that affect your super, tax, and salary packaging.

Division 293 and the concessional contributions cap

The concessional super cap rises to $32,500 from July 2026. Contributions are taxed at 15% inside the fund, but if your combined income and super exceeds $250,000, Division 293 adds another 15% (totaling 30%). Even at 30%, this remains lower than the top marginal rate of 47%, so high earners still benefit from contributing to super.

Working holiday maker tax rates and DASP

Subclass 417 and 462 visa holders pay a flat 15% on the first $45,000 in earnings (no tax-free threshold). Employers must be ATO-registered as WHM employers to apply this rate. When leaving Australia permanently, working holiday makers can claim their super through DASP, but face a 65% withholding tax on the taxable component.

Novated leasing and salary packaging

A novated lease pays for a car from pre-tax salary, saving your marginal tax rate on every dollar spent. Electric vehicles below $91,387 (2026-27 luxury threshold) are FBT-exempt under novation: making EVs effectively 30-40% cheaper through salary packaging than buying outright.

Frequently Asked Questions

Verified Financial TermsBuilt by Galvin Mendonca, Finance Researcher
All figures from primary government sources. Last updated July 2026.