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Work out exactly what you take home after income tax, Medicare levy, HECS-HELP repayments, and super — the amount that actually hits your bank account.
Take-home pay is your gross salary minus income tax, the Medicare levy, and any compulsory HECS-HELP repayments — calculated using the ATO's progressive tax brackets for FY2025-26.
Your employer withholds these deductions from every pay cycle through the "Pay As You Go" (PAYG) system and remits them directly to the Australian Taxation Office. The amount that reaches your bank account — your after-tax income — is what this Australian tax calculator computes.
A full-time employee earning $80,000 gross in FY2025-26 receives the following net pay after tax:
Your employer also contributes $9,600 in superannuation (12% SG rate) on top of your salary, bringing the total remuneration package to $89,600. Use our Superannuation Calculator to model different SG scenarios.
Three compulsory deductions reduce your take-home pay in Australia: income tax, the Medicare levy, and HECS-HELP repayments (if you hold a student loan).
| Deduction | Rate / Rule | Amount on $80,000 | Who Pays |
|---|---|---|---|
| Income Tax | Progressive brackets: 0%, 16%, 30%, 37%, 45% | $14,788 | All residents above $18,200 |
| Medicare Levy | Flat 2% of taxable income | $1,600 | All residents above $27,222 |
| Medicare Levy Surcharge | 1%–1.5% if no private health insurance | $0 (below $93,001 threshold) | Singles earning $93,001+ without PHI |
| HECS-HELP Repayment | Marginal: 15% on income above $67,000 | $1,950 (if debt exists) | Graduates with study loan above $67,000 |
| Superannuation (SG) | 12% of ordinary time earnings | $9,600 (employer-paid) | Employer pays on top — does NOT reduce take-home |
The largest deduction is income tax, calculated using Australia's progressive tax brackets. The "Low Income Tax Offset" (LITO) reduces tax for incomes below $66,667, providing up to $700 in savings. The Medicare levy is a flat 2% that funds Australia's public healthcare system.
Every Australian tax resident claiming the tax-free threshold pays $0 income tax on the first $18,200 of annual earnings. This threshold saves $2,912 compared to the non-resident rate (16% from dollar one). Employees who hold multiple jobs should claim the threshold on only one position — claiming it on two jobs results in under-withholding and a tax bill at lodgment. Non-residents forfeit the threshold entirely and pay 30% from the first dollar earned, producing a significantly lower after-tax income on the same gross salary.
An Australian resident earning $80,000 takes home $63,612 per year after income tax and Medicare levy in FY2025-26. The table below shows take-home pay, weekly pay, and effective tax rates at 7 common salary levels:
| Gross Salary | Income Tax | Medicare | Total Tax | Take-Home | Weekly | Eff. Rate |
|---|---|---|---|---|---|---|
| $40,000 | $2,913 | $800 | $3,713 | $36,287 | $697.83 | 9.3% |
| $60,000 | $8,688 | $1,200 | $9,888 | $50,112 | $963.69 | 16.5% |
| $80,000 | $14,788 | $1,600 | $16,388 | $63,612 | $1,223.31 | 20.5% |
| $100,000 | $20,788 | $2,000 | $22,788 | $77,212 | $1,484.85 | 22.8% |
| $120,000 | $26,788 | $2,400 | $29,188 | $90,812 | $1,746.38 | 24.3% |
| $150,000 | $36,838 | $3,000 | $39,838 | $110,162 | $2,118.50 | 26.6% |
| $200,000 | $56,138 | $4,000 | $60,138 | $139,862 | $2,689.65 | 30.1% |
Figures exclude HECS-HELP repayments and Medicare Levy Surcharge. If you carry a HECS debt, your take-home decreases further — calculate your HECS repayment to see the impact.
Part-time and casual employees use the same income tax brackets as full-time workers — the ATO does not distinguish by employment type. A part-time worker earning $40,000 per year takes home $36,287, identical to a full-time employee on the same gross salary. Casual employees receive a 25% loading in lieu of leave entitlements, which increases gross pay but also increases taxable income. A casual worker paid $30 per hour for 25 hours per week earns $39,000 gross and takes home approximately $35,353 after taxation and the Medicare levy.
This Australian take-home pay calculator serves 5 primary user groups, each needing an accurate net salary figure for a different reason.
Gross pay is the total salary stated in your employment contract before any deductions. Take-home pay (net pay) is the amount deposited into your bank account after the ATO's PAYG withholding removes income tax, Medicare levy, and HECS repayments.
| Attribute | Gross Pay | Take-Home Pay (Net) |
|---|---|---|
| Definition | Total salary before deductions | Amount deposited to your bank |
| Example on $100,000 | $100,000 | $77,212 |
| Includes income tax? | Yes (not yet deducted) | No (already removed) |
| Includes Medicare levy? | Yes (not yet deducted) | No (already removed) |
| Includes super? | No (employer pays separately) | No (employer pays separately) |
| Used for | Employment contracts, ATO returns | Budgeting, mortgage applications |
To convert a gross salary to its take-home equivalent, use the calculator above. To work in the opposite direction — entering a desired net figure and finding the gross salary required — use our Gross Pay Calculator.
Three legislative changes affect take-home pay calculations in the 2025-26 financial year: a higher super guarantee rate, a reformed HECS repayment system, and the continued application of Stage 3 tax cuts.
| Change | FY2024-25 | FY2025-26 | Impact on Take-Home |
|---|---|---|---|
| Super Guarantee Rate | 11.5% | 12% | No direct impact (employer-paid), but increases total package by $400 on $80,000 |
| HECS-HELP System | Tiered % of total income (threshold $54,435) | Marginal system (threshold $67,000, 15% marginal rate) | Graduates near old thresholds keep $1,000–$3,000 more |
| Income Tax Brackets (Stage 3) | 16% bracket to $45K; 30% to $135K | Same (applied from 1 July 2024) | Ongoing savings of $804–$4,529 vs pre-Stage 3 rates |
The HECS reform is the most significant change for graduates. Under the old system, crossing the $54,435 threshold triggered a repayment on total income. The new marginal system taxes only the portion above $67,000 at 15%, eliminating sudden "cliff" repayment jumps. Use our HECS-HELP Calculator to compare your repayment under both systems.
Five errors cause Australian employees to miscalculate their net pay after tax, leading to budget shortfalls or incorrect salary expectations.
Two strategies legally reduce your taxable income and increase your after-tax pay: salary sacrifice and work-related deductions.
Redirecting part of your pre-tax salary into superannuation reduces your assessable income. On $100,000, sacrificing $10,000 into super saves approximately $1,500 in income tax because that $10,000 is taxed at 15% inside super instead of your 30% marginal rate. The concessional contribution cap for FY2025-26 is $30,000 (including employer SG).
Compare your pay before and after salary sacrifice
Tax deductions reduce your taxable income at your marginal tax rate. Common deductions include work-from-home expenses ($0.67 per hour fixed rate), uniforms and protective clothing, tools and equipment, and professional development courses. A $2,000 deduction at the 30% marginal rate reduces your tax by $600.
Singles earning above $93,001 avoid the "Medicare Levy Surcharge" (1%–1.5%) by holding private hospital cover. On a $150,000 salary, the surcharge costs $2,250 per year — often more than a basic hospital policy. Obtaining cover increases your disposable salary by eliminating this surcharge.
| Strategy | Tax Saved (on $100K) | Increases Bank Deposit? | Complexity |
|---|---|---|---|
| Salary sacrifice $10K into super | $1,500 | No (funds go to super) | Low — employer sets up |
| $2,000 in work-related deductions | $600 | Yes (tax refund at lodgment) | Medium — receipts required |
| Private health insurance (avoiding MLS) | $1,000 | Net effect depends on premium cost | Low — buy a policy |
This take-home pay calculator covers net income after tax. Five related tools on Pay Calculator Australia address adjacent payroll questions:
Get a bracket-by-bracket breakdown of your income tax.
Income Tax Calculator →Last verified: 14 March 2026. Our content is based on the latest information from official Australian government sources.