How this is calculated
Income tax is charged on the whole of taxable income in slices: nothing on the first $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. The Medicare levy is a separate flat 2% of taxable income, with a low-income exemption and shading-in range near the bottom of the scale.
Worked example on $95,000: tax is 16% of the $26,800 between $18,200 and $45,000, which is $4,288, plus 30% of the $50,000 between $45,000 and $95,000, which is $15,000 — $19,288 in total. The Medicare levy adds 2% of $95,000, or $1,900.
Total deductions of $21,188 leave about $73,812 a year, roughly $6,151 a month, at an effective rate of 22.3%. Separately, your employer pays $11,400 in superannuation into your fund, so the real cost of employing you is around $106,400.
Superannuation is on top, not taken out
Australian job ads quote salary in two ways and the difference is 12%. A package quoted as '$95,000 plus super' means $95,000 in taxable salary with $11,400 going into your fund separately. A package quoted as '$106,400 including super' means the same total but a lower salary — and therefore lower take-home pay.
Always establish which one an offer uses. It is the most common source of confusion in Australian salary negotiation, and the gap on a six-figure package is worth more than most annual pay rises.
Salary sacrificing extra into super does reduce take-home, because sacrificed amounts come out of gross salary. They are taxed at 15% inside the fund instead of your marginal rate, which is why it is attractive for anyone in the 30% bracket or above.
What this estimate leaves out
The Medicare levy surcharge, an extra 1% to 1.5% for higher earners without private hospital cover — a genuine cost for singles above $97,000 and families above $194,000, and usually cheaper to avoid by buying basic hospital cover than by paying.
Also excluded: HELP and HECS repayments, which are compulsory above the repayment threshold and scale from 1% to 10% of income; the low income tax offset; salary sacrifice arrangements including novated leases; and the different rates that apply to non-residents, who get no tax-free threshold at all.
How to use the australia salary calculator
- Enter your annual gross salary. Use the headline figure from your contract or offer letter, in A$, before any deductions.
- Read the net and monthly rows. Net salary is what remains for the year; take-home per month is that divided by twelve.
- Check the effective rate. Income tax and Medicare levy as a share of gross. This is the number to compare across countries — not the top bracket rate, which almost nobody actually pays on their whole income.