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Software Engineer Salary Australia 2026 — What Tax Returns Show & Take-Home

The 84,585 people who gave their occupation as software engineer on 2023–24 tax returns had a median salary of $132,758 and an average of $135,788, according to the ATO. Whether any award minimum applies depends on your employer: the Professional Employees Award covers IT professionals only at businesses principally in the IT or telecommunications industry, where a graduate's floor is $66,825 a year ($33.71 an hour). On the $132,758 median, take-home pay is about $3,837 a fortnight.

Official ATO ratesUpdated FY2026-27Free foreverNo signup required
A software engineer with headphones points at a monitor while a colleague leans in, harbour behind

The award rates on this page apply only if your employer is principally in the IT or telecommunications services industry and your role needs an ACS-accredited degree or equivalent (cl 4.1(b), cl 2.3).

What software engineers earn: 2023–24 tax returns

In the ATO’s Taxation statistics for 2023–24, 84,585 people gave their occupation as “Computing professional - software engineer”. Among those who reported wages, the median salary or wage income was $132,758 and the average $135,788. Their average taxable income was $148,516.

Developers who described themselves differently on their return were coded to the neighbouring software occupations below, which are shown for comparison.

Software Engineer income from 2023–24 tax returns
Occupation on the tax returnPeopleMedian salary or wagesAverage salary or wagesMedian taxable incomeAverage taxable income
Computing professional - software engineerATO occupation code 26131384,585$132,758$135,788$134,370$148,516
Applications programmerATO occupation code 26131247,545$117,992$122,258$119,893$130,623
Computing professional - analyst programmerATO occupation code 2613118,581$122,234$126,060$123,030$131,497
Computing professional - software testerATO occupation code 2613147,771$106,142$107,317$105,729$108,021
Devops engineerATO occupation code 261316666$109,093$108,034$108,541$110,170

ATO figures come from 2023–24 individual tax returns: everyone who gave this occupation, including part-time and part-year workers. Salary or wages is the gross wage income people reported (averages and medians count only those who reported some); taxable income adds other income such as interest and business income and subtracts deductions. Neither figure is a full-time rate or a legal minimum.

Median full-time pay

Jobs and Skills Australia puts median full-time earnings for Software and Applications Programmers (ANZSCO 2613) at $2,537 a week ($67 an hour), against $1,852 a week for all occupations.

Median weekly pay of full-time, non-managerial adult employees before tax and salary sacrifice, from the ABS Survey of Employee Earnings and Hours (May 2025) as published by Jobs and Skills Australia. It reflects what employers actually pay, including people on enterprise agreements or above-award salaries, so it is a market figure, not a legal minimum.

Software Engineer pay after tax

What each figure on this page leaves after income tax and the Medicare levy, worked out with the same tax engine as the rest of this site. Use the row nearest your own salary to sense-check the net pay on your payslip.

Software Engineer take-home pay on each figure
FigureGross a yearTax and MedicareTake-home a yearA fortnight
Award minimum — Level 1 Graduate professional — pay point 1.1 (3 year degree)MA000065, 2026–27$66,825−$11,905$54,920$2,112
Median full-time pay — Software and Applications ProgrammersJobs and Skills Australia, May 2025 (weekly × 52)$131,924−$32,735$99,189$3,815
Median salary or wages — Computing professional - software engineerATO tax returns, 2023–24$132,758−$33,002$99,756$3,837
Median salary or wages — Applications programmerATO tax returns, 2023–24$117,992−$28,278$89,714$3,451
Average salary or wages — Computing professional - software engineerATO tax returns, 2023–24$135,788−$34,028$101,760$3,914

2026–27 resident tax rates with the low income tax offset and the 2% Medicare levy; no HECS-HELP repayment and no Medicare levy surcharge. Superannuation is paid on top by your employer. Your employer withholds tax each pay from the ATO’s withholding schedules, so the tax on a payslip will not match these annual figures to the dollar. For the full breakdown see take-home pay on $135,000 (the nearest step to $135,788), or enter your own salary below.

The table assumes private hospital cover. A single person without it pays the Medicare levy surcharge of 1% to 1.5% once their income for surcharge purposes passes $105,000 (2026–27), which would lower the take-home on the higher rows.

Which award covers software engineers

The Professional Employees Award 2020 [MA000065] covers software engineers only through its information technology stream, and only where the employer is principally engaged in the IT industry or the telecommunications services industry (cl 4.1(b)). The award defines the IT industry to include designing software, computer programming, computer consultancy and system analysis services (cl 2.3).

Within such an employer, the classifications apply to professional IT duties: work that needs a 3, 4 or 5-year degree with a science or IT major accredited by the Australian Computer Society at professional level, or the qualifications and experience to be an ACS Certified Professional (cl 2.3). A graduate starts at Level 1 pay point 1.1; with 4 years' professional IT experience after graduating you are an experienced IT employee at Level 2.

Not every software engineer works in the IT industry: Jobs and Skills Australia lists financial and insurance services among the industries that employ them. A software engineer at a bank, retailer or government agency is not covered by this stream; check the award for that employer's industry or your enterprise agreement, and if none applies the National Minimum Wage and the National Employment Standards are the floor.

The classifications do not apply to anyone employed in a wholly or principally managerial position (Schedule A).

Read the Professional Employees Award 2020 [MA000065] on the Fair Work Commission’s site (consolidated to 1 July 2026).

Software Engineer award pay rates 2026–27

These rates apply from the first full pay period starting on or after 1 July 2026. Part-time employees are paid the same hourly rates for the hours they work.

Software engineer award minimums (IT-industry employers), 2026–27

Professional Employees Award annual wages from clause 14.1, the award's weekly conversion (annual x 6/313), and Schedule C hourly and casual rates. They apply only where the award covers you; see above.

Software engineer award minimums (IT-industry employers), 2026–27
ClassificationHourlyWeekly (38 hrs)AnnualCasual hourly
Level 1 Graduate professional — pay point 1.1 (3 year degree)Graduate IT employee with a 3-year ACS-accredited degree$33.71$1,280.99$66,825$42.14
Level 1 Graduate professional — pay point 1.1 (4 or 5 year degree)Graduate IT employee with a 4 or 5-year degree$34.57$1,313.83$68,538$43.21
Level 1 Graduate professional — pay point 1.2$35.15$1,335.87$69,688$43.94
Level 1 Graduate professional — pay point 1.3$36.62$1,391.50$72,590$45.78
Level 1 Graduate professional — pay point 1.4$38.47$1,461.99$76,267$48.09
Level 2 Experienced professionalExperienced IT employee: degree plus 4 years' professional IT experience$39.77$1,511.23$78,836$49.71
Level 3 Professional$43.46$1,651.57$86,157$54.33
Level 4 Professional$49.02$1,862.74$97,173$61.28

Annual is the award's own full-time annual salary, before tax and before superannuation. Casual hourly includes the 25% casual loading.

Software Engineer penalty rates and overtime

Software Engineer penalty rates
When you workFull-time / part-timeCasual
Monday–Saturday before 6 am or after 10 pm125%150%
Sunday150%175%
Public holiday150%175%

Percentages of the minimum hourly rate for hours worked at the employer's direction (cl 18.4, Schedule C). There is no Saturday daytime penalty under this award.

Overtime

  • Overtime beyond 38 hours a week includes call-backs and work done on electronic devices or remotely, and is paid at the ordinary minimum hourly rate (cl 18.2(a)).
  • It stops applying once your contract salary is at least 25% above your level's minimum (cl 18.6): $83,531.25 for a 3-year-degree graduate, $98,545 at Level 2 and $121,466.25 at Level 4.

Work out a shift with penalties or overtime using the overtime pay calculator.

Allowances

Software Engineer allowances
AllowanceAmountWhen it applies
Vehicle allowanceAt least $1.00 per kmWhen you and your employer agree that you will use your own vehicle on the employer's business (cl 16.3).
Travelling expensesReasonable costsAll reasonable expenses, including accommodation and meals, incurred while travelling on the employer's business (cl 16.2).

Checking a software engineer payslip

  • After-hours and remote work: under the award, answering a call-back or working remotely on a device counts as overtime (cl 18.2(a)). Below the cl 18.6 salary line those hours must be recorded (cl 18.5) and paid, and overtime has to appear as its own amount on the payslip (Fair Work Ombudsman, pay slips).
  • Salary line: compare your contract salary with 125% of your level's minimum. A graduate on $83,531.25 or more (3-year degree) is outside the overtime and penalty clauses, so no overtime lines are owed under the award.
  • Super and deductions: each payslip must show the super your employer paid, or will pay, for the period and the fund it goes to, and every deduction — salary sacrifice included — with the fund or account it was paid into (Fair Work Ombudsman, pay slips).

For what every line on a payslip should show, see understanding your payslip.

What this page does not show

  • Equity and RSU values: this page shows salary or wage income as people reported it on their tax returns and does not estimate equity.
  • Contractor day rates: awards and the minimum wage apply to employees, not to independent contractors.
  • Salary by state or seniority: ATO occupation figures are not published that way for software engineers alone.

Software Engineer pay questions

On 2023–24 tax returns, the 84,585 people who gave their occupation as software engineer had a median salary or wage income of $132,758 and an average of $135,788 (ATO Taxation statistics 2023–24). Jobs and Skills Australia's full-time median for software and applications programmers is $2,537 a week, about $131,924 a year (May 2025).

Only at some employers. The Professional Employees Award covers IT professionals whose employer is principally in the IT or telecommunications services industry, and whose role needs an ACS-accredited degree or equivalent. A software engineer at a bank or government agency is outside that stream.

Where the award applies, $66,825 a year ($33.71 an hour) for a graduate with a 3-year accredited degree, or $68,538 with a 4 or 5-year degree, at Level 1 pay point 1.1 from 1 July 2026. Elsewhere the legal floor is the National Minimum Wage.

On the $132,758 ATO median, about $99,756 a year or $3,837 a fortnight after 2026–27 income tax and the Medicare levy, with no HECS-HELP and with private hospital cover. On the $135,788 average, about $101,760 a year.

Under the Professional Employees Award, call-backs and remote work on devices count as overtime, paid at the ordinary hourly rate — but only while your salary is less than 25% above your level's minimum ($98,545 at Level 2). Above that, and for employees outside the award, your contract decides.

On 2023–24 tax returns the median salary or wage income was $132,758 for software engineers, $117,992 for applications programmers, $122,234 for analyst programmers and $106,142 for software testers (ATO).

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How this page is sourced▼

Every minimum rate was read from the Fair Work Commission's consolidated text of the Professional Employees Award 2020, consolidated to 1 July 2026, on 9 October 2026. Casual rates are the award's own published figures wherever it publishes them. Nothing is estimated.

Income figures are the ATO’s Taxation statistics 2023–24, Individuals Table 15A, exactly as published: the occupation is what each person wrote on their tax return.

The median comes from Jobs and Skills Australia’s occupation profile and is a market figure, not an entitlement. Take-home figures use the same tax engine as the rest of this site. Award rates change every 1 July, so re-check after the next Annual Wage Review.

Sources & References

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    Pay slips— Fair Work Ombudsman
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Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.

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