Calculate your take-home pay after tax, Medicare levy, and superannuation. Updated for 2025-2026 financial year.
Enter your gross salary before tax and select pay frequency
Pre-tax salary deductions. Common for NFP/charity workers, novated leases, extra super.
Quick examples:
Enter your salary to see results
Calculate your take-home pay, tax, and super
Maximise your take-home pay with salary packaging benefits
Salary packaging (also called salary sacrifice) allows you to use your pre-tax income to pay for certain expenses. This reduces your taxable income, which means you pay less income tax and take home more money. It's a legal way to restructure your salary to be more tax-effective.
Up to $15,900 tax-free
If you work for a Public Benevolent Institution (PBI) or health promotion charity, you can salary package up to $15,900 per year completely tax-free. This applies to organizations like Red Cross, Cancer Council, and other registered charities.
Up to $32,650 total benefit
Public hospital employees (nurses, doctors, admin staff) can package up to $30,000 plus an additional $2,650 for meal entertainment and venue hire. This totals $32,650 in pre-tax benefits per year.
Rent, mortgage, bills, groceries
Car lease, fuel, insurance
Restaurants, cafes (hospital workers)
💵 Annual Savings: ~$9,967 extra take-home pay!
That's an extra $830 per month in your pocket
Everything you need to know about Australian salary tax
Australian income tax is calculated using progressive tax brackets. For 2025-26: $0-$18,200 is tax-free, $18,201-$45,000 is taxed at 16%, $45,001-$135,000 at 30%, $135,001-$190,000 at 37%, and income over $190,001 at 45%. Additionally, a 2% Medicare levy applies to most taxpayers.
The Medicare Levy is a 2% tax on your taxable income that helps fund Australia's public health system (Medicare). It's separate from income tax and applies to most Australian taxpayers. Some low-income earners may be exempt or pay a reduced levy.
From 1 July 2025, employers must contribute 12% of your ordinary time earnings to your superannuation fund. This is called the Superannuation Guarantee (SG) and is paid on top of your salary - it's not deducted from your wages.
The tax-free threshold for 2025-26 is $18,200. This means you don't pay any income tax on the first $18,200 you earn in a financial year. With the low income tax offset, you actually won't pay tax if you earn less than $22,575 per year.
Yes, contractors with an ABN still need to pay income tax. However, the tax isn't automatically withheld from your payments. You'll need to set aside money for tax yourself and pay it when you lodge your tax return. Consider using our PAYG Withholding Calculator to estimate how much to save.
Gross salary is your total income before any deductions. Take-home pay (net pay) is what you actually receive after income tax and Medicare levy are deducted. Superannuation is paid by your employer on top of your gross salary, so it doesn't reduce your take-home pay.
This calculator uses official ATO tax rates for the 2025-26 financial year and provides accurate estimates for most employees. However, it doesn't account for tax offsets (except low income), deductions, HECS-HELP debt, or Medicare Levy Surcharge. For personalized advice, consult a tax professional.
The 2025-26 tax rates apply to income earned between 1 July 2025 and 30 June 2026. The tax-free threshold remains at $18,200, and the superannuation guarantee has increased from 11.5% to 12% as of 1 July 2025.
Salary packaging (salary sacrifice) allows you to use pre-tax income to pay for expenses, reducing your taxable income. NFP/charity employees can package up to $15,900 tax-free, while public hospital workers (nurses, doctors) can package up to $32,650 ($30K + $2,650 meal entertainment). This can save thousands in tax annually.
A nurse earning $80,000 can save approximately $9,967 per year (~$830/month) by packaging the full $32,650 available to public hospital employees. The packaging reduces taxable income from $80,000 to $47,350, significantly lowering income tax. Use the calculator above to see your exact savings.
The $15,900 cap applies to employees of Public Benevolent Institutions (charities like Red Cross, Cancer Council). The $32,650 cap is specifically for public hospital employees and includes $30,000 general packaging plus $2,650 for meal entertainment and venue hire benefits.
Yes, salary packaging providers typically charge administration fees of around $10 per fortnight (~$260/year). However, even with these fees, the tax savings far outweigh the cost. For example, a nurse saving $9,967/year only pays $260 in fees, netting $9,707 in savings.
Yes, salary packaging reduces your taxable income, which may lower or eliminate your HECS-HELP repayment obligation for the year. This is actually a benefit - you keep more money now and pay off HECS slower. However, consider whether you want to prioritize debt repayment or immediate cash flow.
Common expenses include: rent/mortgage payments, utilities, groceries, vehicle lease/loan, fuel, insurance, and childcare fees. For hospital workers, the $2,650 meal entertainment benefit covers restaurant meals, cafes, and food delivery. Your salary packaging provider will have a full list of eligible expenses.