What can you purchase using the upcoming small tax break

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The average tax-paying earner will save a maximum of $268 from July 1, 2026 and this amounts to just $5 per week.

That’s about the price of a standard flat white with no fancy milk.

You’ll see this extra amount reflected in your payslip next year and we’ve done the math to figure out what else you can pay for with the federal government’s tax cut.

Treasurer Jim Chalmers announced a surprise tax cut in the 2025 Federal Budget. (Polly Hanning/Nine)

One average weekly grocery bill per year

The extra $268 is paid across the financial year, so come July 1, 2027, you will have saved a little over one week’s worth of groceries.

According to recent figures, the average Aussie household spends $213.64 on groceries every week.

If you squirrel away that extra money every payslip you’ll be able to afford a trolley full of groceries – but that’s only if prices don’t rise any further.

Five months’ worth of streaming

According to Kantar, the average household in Australia forks out $50 per month on streaming services like Netflix, Stan, Disney+ and Apple TV.

The tax cuts would cover just over five months’ worth of streaming.

Stock image of a takeaway cup — The tax cuts in 2026 amount to just $5 per week, or the cost of a takeaway coffee. (Getty)

Your power bill – but only if you live in WA

The tax cuts won’t cover your quarterly electricity bill in most Australian states and territories except for Western Australia.

Finder research found the average quarterly bill in WA costs $245 – that’s the cheapest among Queensland, Victoria, NSW and South Australia.

Gas is a fair bit cheaper than electricity in Australia and after energy rebates, the tax cuts should cover one quarterly energy bill in most states including NSW, Victoria, Queensland, South Australia and Western Australia.

Your one-way public transport fare – but only in Queensland

The $5 per week amounts to just 70c per day, which can afford you a one-way public transport ticket if you live in Queensland.

But for every other state and territory, that 70c won’t get you very far.

In pictures: The federal budget newspaper front pages

Person paying power bill — The tax cut could cover the cost of one quarterly energy bill. (Getty)

One bottle of full-cream milk

The federal government’s $5 per week tax cut next year could afford you a three-litre bottle of full-cream milk at Woolworths, which costs $4.35.

The same goes for Coles, where you can grab a Coles home brand milk for the same price.

You’ll even have 65c left to spare for the week.

Travel insurance for one trip a year

If you save all your pennies from the 2026 tax cut, you’ll be able to afford the average cost of travel insurance for one person.

According to Canstar, in 2024 the average international travel insurance premium was $204 for a single person.

If you’re a “mature single”, which is another word for senior travellers, the cost is a bit more at $265 – which would still be covered by the $268 annual saving.