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ATO FY 2025/26 STAGE 3 ACTIVE
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Permanent Resident (Subclass 189) – Stage 3 Rates FY 2025/26

Skilled Independent Visa (Subclass 189) Tax Calculator

Subclass 189 visa holders are Australian Permanent Residents with full access to Medicare, the $18,200 tax-free threshold, and Stage 3 individual tax cuts.

Stage 3 Marginal Rates100% Medicare Exemption Check12% Superannuation Guarantee
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Gross Annual Salary (AUD)

Base salary before tax & superannuation

FY 2025/26 Stage 3
AUD $
$20k$100k$180k$300k
Quick Presets:

Visa Subclass & Nationality

Determines tax residency brackets and Medicare eligibility

Non-RHCA (MES Eligible)

Additional Residency & Insurance Toggles

Applied for Permanent Residency (PR)?Subclass 186/189/190/820

Applying for PR with work rights gives you interim Medicare access, removing the MES exemption.

Adequate Private Hospital Cover?Avoids MLS Surcharge

Avoids 1.0% – 1.5% Medicare Levy Surcharge for taxable incomes above $101,000.

Estimated Net Pay

Take-Home Income

Net Take-Home (annual)26.4% Effective Rate
$99,325/ annual
Medicare Levy Payable (2%)Standard

Levy: $2,700/yr (Australian Citizens and Permanent Residents are eligible for full Medicare and must pay the Medicare Levy.)

Gross Salary$135,000
Income Tax (Stage 3)-$31,288
Medicare Levy-$2,700
Medicare Levy Surcharge (Tier 2 (1.25%))-$1,688
Total Tax Withheld$35,676
Employer Superannuation12.0%

Paid in addition to gross salary

$16,200

Total pkg: $151,200

Citizen vs. Visa Holder Comparison

AU Citizen / PR

$99,325

Includes 2% Medicare
Visa Holder (You)

$99,325

Standard Rate

Take-home pay matches standard Australian citizen tax rates (Medicare Levy applies).

Private Hospital Cover Tax Shield

Income of $135,000 triggers Medicare Levy Surcharge (Tier 2 (1.25%))

Penalty: -$1,688/yr
Without Hospital Cover (Tax Penalty)

-$1,688

Paid 100% to the ATO as a surcharge tax with zero healthcare benefit.

With Basic Hospital Cover

~$1150/yr

Saves you $538 in net cash + full private hospital cover!

Compare ATO compliant private hospital health funds (Bupa, Medibank, nib).Compare Tax Shield Policies
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Official ATO & Services Australia Rules for Subclass 189 (Skilled Independent PR)

How your visa subclass is treated under Australian tax legislation

Tax Residency Treatment

Standard resident Stage 3 tax rates ($0 - $18,200: 0%, $18,201 - $45,000: 16%, $45,001 - $135,000: 30%, $135,001 - $190,000: 37%, >$190,000: 45%).

Medicare Levy Exemption (MES) Guidance

As a Permanent Resident, you are entitled to full Medicare healthcare coverage and are liable to pay the standard 2% Medicare Levy (with low-income threshold phase-in).

Taxation Guide for Subclass 189 Skilled Independent Permanent Residents

The Subclass 189 visa grants Australian Permanent Residency without requiring employer or state sponsorship. As a permanent resident, your tax affairs are treated identically to Australian citizens.

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1. Stage 3 Tax Rates for PR Holders

  • $0 – $18,200: 0% (Tax-Free Threshold)
  • $18,201 – $45,000: 16%
  • $45,001 – $135,000: 30%
  • $135,001 – $190,000: 37%
  • Over $190,000: 45%

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    2. Medicare Levy (2.0%) & Surcharge (MLS)

  • Standard Medicare Levy: 2.0% applies to taxable income above $35,013 (phased in between $28,011 and $35,013).
  • Medicare Levy Surcharge (MLS): If your individual taxable income exceeds $101,000 AUD and you do not hold Australian registered private hospital cover, an additional 1.0% to 1.5% MLS surcharge applies.
  • Frequently Asked Questions

    Tax & Medicare Questions for Subclass 189 (Skilled Independent PR)

    Q:Do Subclass 189 visa holders pay the Medicare Levy?

    Yes. Subclass 189 holders are Australian Permanent Residents entitled to public Medicare services and must pay the standard 2.0% Medicare levy.