Instantly calculate your net salary after income tax, Medicare levy, superannuation and HECS/HELP repayments — using the latest official ATO 2025–26 rates including Stage 3 tax cuts.
Calculates Take-Home Pay instantly as you type
Your take-home pay — also called net pay or after-tax salary — is the amount deposited into your bank account each pay period after your employer deducts PAYG income tax, Medicare levy, and any other withholding from your gross salary.
Gross pay is your total salary before deductions — the figure on your employment contract. Net pay is what you actually receive. For most Australians earning $80,000 gross, net take-home is roughly $61,000–$64,000 per year after income tax and Medicare levy.
Your employer withholds Pay As You Go (PAYG) tax from each pay cheque and remits it to the ATO. The withheld amount is based on your projected annual income, tax-free threshold claim, and HECS status. Any over- or under-withholding is reconciled at tax time as a refund or tax debt.
Most Australian roles quote salary exclusive of superannuation — meaning your employer pays an additional 12% on top. Some employers quote a "total package" including super. Always clarify before accepting an offer to know your true take-home position.
Australian employees are paid weekly (52x/year), fortnightly (26x/year), monthly (12x/year), or hourly. Fortnightly is most common for full-time workers. Note that some months have 3 pay weeks — our calculator shows true annual figures divided by period.
From 1 July 2024, the Stage 3 tax cuts restructured Australia's brackets. The 19% rate dropped to 16%, the 32.5% rate dropped to 30%, and the 37% threshold rose to $135,000. Every Australian taxpayer benefited — especially those earning $45,000–$135,000.
Australian residents can earn up to $18,200 per year without paying any income tax. You claim this from one employer only. The Low Income Tax Offset (LITO) of up to $700 provides additional relief for incomes below $66,667, further reducing the effective tax on lower salaries.
Australia uses a progressive tax system — you pay higher rates only on the portion of income within each bracket. These are the official ATO resident rates for the 2025–26 financial year.
| Taxable Income | Marginal Rate | Tax on This Slice | Cumulative Tax (max) | Typical Earner |
|---|---|---|---|---|
| $0 – $18,200 | 0% | $0 | $0 | Tax-free threshold |
| $18,201 – $45,000 | 16% | Up to $4,288 | $4,288 | Part-time / junior workers |
| $45,001 – $135,000 | 30% | Up to $27,000 | $31,288 | Most full-time workers |
| $135,001 – $190,000 | 37% | Up to $20,350 | $51,638 | Senior professionals |
| $190,001+ | 45% | 45¢ per $1 above | Unlimited | High income earners |
Plus 2% Medicare Levy: These rates exclude the 2% Medicare Levy. The Low Income Tax Offset (LITO) of up to $700 further reduces tax for incomes below $66,667. Both are calculated automatically by our pay calculator above.
Three major components affect your Australian take-home pay beyond income tax. Here is exactly how each works in 2025–26.
A flat 2% of taxable income funds Australia's public healthcare. Low-income earners below ~$26,000 are exempt. Singles over $93,000 without private hospital cover also pay the Medicare Levy Surcharge (MLS) of 1%–1.5% extra — often cheaper to just get private cover.
From 1 July 2025, employers must contribute 12% of ordinary time earnings as superannuation — paid on top of your salary into your nominated super fund. Employer contributions are taxed at 15% within the fund. Maximum SG base is $62,500/quarter.
The threshold rose to $67,000 (from $54,435). You now repay only 15% on income above $67,000 — not on your total income. At $80,000: repay $1,950/year (vs $3,600 under the old system). All HELP debts were also cut by 20% as of 1 June 2025.
| HECS/HELP Repayment Rates 2025–26 (Marginal System — New from 1 July 2025) | ||
|---|---|---|
| Repayment Income | Rate Applied | Example |
| Below $67,000 | Nil | No repayment required |
| $67,001 – $125,000 | 15% on excess above $67k | $80,000 → $1,950/year |
| $125,001 – $179,285 | $8,700 + 17¢ per $1 over $125k | $150,000 → ~$13,950/year |
| $179,286+ | 10% of total repayment income | $200,000 → $20,000/year |
Strategies used by smart Australian employees and contractors to legally reduce their tax burden and keep more of their earnings.
Pre-tax super contributions are taxed at just 15% — well below the 30%+ most workers pay. Sacrificing $5,000–$10,000 per year can save thousands in tax while growing your retirement savings faster.
Bundle car payments, fuel, insurance and servicing into pre-tax salary deductions through a novated lease. This reduces taxable income significantly for anyone who needs a vehicle — work-related or personal.
Work-related expenses reduce taxable income dollar-for-dollar. Home office costs, professional memberships, work clothing, tools, and self-education expenses are all claimable. Keep receipts and a logbook.
If you earn over $93,000 single or $186,000 as a couple, basic private hospital cover avoids the Medicare Levy Surcharge (1%–1.5%). For many earners, the insurance premium costs less than the surcharge.
Pre-paying up to 12 months of deductible expenses (such as investment loan interest or income protection insurance) before 30 June brings forward deductions, reducing your current year's taxable income.
Making extra HECS payments before 1 June avoids indexation being applied to that amount. With the new marginal rate system, voluntary repayments are most beneficial for high earners where the 10% flat rate kicks in.
Most Australians receive a refund. Lodging from 1 July means your refund arrives faster. Use myTax via the ATO portal or a registered tax agent — especially if you have investment income, rental properties, or multiple jobs.
Employees of hospitals, charities, and some NFPs can salary package up to $15,900 in living expenses tax-free. This can significantly increase effective take-home pay for workers in the not-for-profit sector.
Common questions from Australian workers about take-home pay, income tax calculations, and payroll deductions.