All Australian taxpayers will receive another tax cut in 2026 and 2027. It was the final cost-of-living sweetener unveiled in Tuesday night's Federal Budget, after the government already promised a $150 energy rebate, cheaper medicines and more bulk-bulled doctor's visits.

Treasurer Jim Chalmers confirmed the government would deliver the new tax cuts over two years. The average worker earning $79,000 will get a tax cut of $268 in 2026 and $536 in 2027.

That's about $10 in extra savings a week, with the tax breaks set to cost the budget $17.1 billion over the forward estimates.

RELATED

• Wages 'boost' for workers earning less than $180,000 under new workplace ban

• Little-known $5,000 ATO retirement loophole revealed: 'Pretty simple'

• Centrelink closures and payment changes for millions over Easter and Anzac Day

Find out how the 2025 Federal Budget will impact you by following Yahoo Finance’s coverage here.

"Every Australian taxpayer will get a tax cut next year and the year after, to top up the tax cuts which began last July," Chalmers said.

"This will take the first tax rate down to its lowest level in more than half a century. These additional tax cuts are modest but will make a difference."

From July 1, 2026, the 16 per cent tax rate, which applies to taxable income between $18,201 and $45,000, will be reduced to 15 per cent.

From 1 July 2027, this tax rate will be reduced further to 14 per cent.

Combined with the revised Stage 3 tax cuts introduced last year, the changes will give the average worker an extra $2,548 a year or about $50 a week.

What cost-of-living relief is in the 2025 Federal Budget?

Easing cost-of-living pressures for Aussies was a key focus of Treasurer Jim Chalmers' fourth Federal Budget.

Here are the big cost-of-living sweeteners for Aussies:

• $150 energy bill rebate: The $300 energy rebate will be extended until the end of the year, with two more quarterly payments to hit accounts from July 1.

• Cheaper medicines: The maximum cost of PBS-listed medicines will be $25, down from $31.60.

• Free GP visits: $8.5 billion investment in Medicare to make nine out of 10 GP visits free by 2030.

• Cheaper childcare: the Child Care Subsidy activity test will be scrapped from January 1, 2026 to guarantee at least three days of subsidised care each week.

• HECS debts slashed: Student loan debt will be slashed by 20 per cent if Labor is re-elected. The government will also raise the minimum repayment threshold, meaning people can earn more people they have to repay their debt.

Get the latest Yahoo Finance news - follow us on Facebook, LinkedIn and Instagram.