Australian Pay Calculator

How is my take-home pay calculated?

Your take-home pay is gross income minus income tax, Medicare Levy, and HECS repayment. Super is paid by your employer on top, so it does not reduce your take-home pay.

Why does my result differ from my payslip?

Payslips use ATO PAYG withholding tables which round to weekly/fortnightly cycles. Small differences are normal and reconciled at tax return time.

Can I compare 2025–26 and 2026–27 rates?

Yes. Use the Tax Year selector above the calculator. From 1 July 2026, the $18,201–$45,000 bracket dropped from 16% to 15%, saving up to $268 per year.

Are these calculations an estimate?

Yes. Results are accurate estimates based on ATO rates. They do not account for individual deductions or investment income. Salary sacrifice to super is supported on the Full-time tab. Consult a registered tax agent for personalised advice.

What are the 2026–27 income tax rates?

0% up to $18,200 · 15% on $18,201–$45,000 (reduced from 16%) · 30% on $45,001–$135,000 · 37% on $135,001–$190,000 · 45% above $190,000. Plus 2% Medicare Levy.

What is the Low Income Tax Offset (LITO)?

LITO provides up to $700 tax reduction for earners under $37,500, phasing out by $66,667. Applied automatically. No claim required.

What is PAYG withholding?

Your employer deducts estimated tax each pay cycle. The ATO reconciles the total when you lodge your tax return, resulting in a refund or bill.

What is the $1,000 instant tax deduction?

From 2026–27, workers can claim a $1,000 standard deduction without keeping receipts. It reduces taxable income when lodging your tax return.

When do HECS repayments start?

Repayments begin when income exceeds $67,000 (2025–26) or $69,528 (2026–27). Below the threshold, no repayment is required regardless of debt balance.

How does the marginal repayment system work?

From 2025–26, you only pay on income above the threshold, not your entire income. On $80,000 (2025–26): 15% of ($80,000 − $67,000) = $1,950/yr. Far less than the old system.

What was the 20% HECS debt reduction?

All HECS-HELP balances were automatically cut by 20% as at 1 June 2025. A $30,000 debt became $24,000. No action was required. The ATO processed it automatically.

Does salary sacrifice reduce HECS repayments?

No. Reportable super contributions are added back to repayment income. Salary sacrifice does not reduce your HECS obligation.

What is the super rate in 2026–27?

12%. From 1 July 2026 that 12% is worked out on qualifying earnings, a wider base than before which now takes in commissions and any salary you sacrifice into super. The timing changed as well. Super used to reach your fund quarterly, and it now leaves with every pay. It is still paid on top of your salary and does not reduce your take-home pay, so the practical difference is that your super moves whenever your pay does.

Salary inclusive vs exclusive of super?

"$80,000 inclusive of super" = base $71,429 + $8,571 to super. "$80,000 plus super" = $80,000 base + $9,600 employer super contribution on top.

How are Working Holiday Makers taxed?

15% on the first $45,000. Above $45,000: resident rates apply (30% to $135,000, then 37% to $190,000, then 45%). No Medicare Levy. No HECS repayment.

What is the tax-free threshold?

Australian residents can earn up to $18,200 tax-free. With LITO, the effective threshold is about $22,867. Non-residents and WHMs pay tax from dollar one.

Can some working holiday makers use resident tax rates?

Some working holiday makers from certain countries with a tax treaty non-discrimination clause (e.g. the UK) may be eligible for resident tax rates instead of the flat 15% rate, depending on individual circumstances (see Commissioner of Taxation v Addy). This calculator uses the standard WHM rate. Check with the ATO or a tax agent if you think this may apply to you.

What is a novated lease?

A three-way arrangement between you, your employer, and a finance company. Your lease payments and running costs are deducted from your pre-tax salary, which can lower your taxable income.

Are electric vehicles exempt from FBT (Fringe Benefits Tax)?

Eligible battery and fuel-cell electric vehicles first held from 1 July 2022, and priced below the fuel-efficient luxury car tax threshold ($91,661 for 2026–27), are exempt from FBT. Plug-in hybrids are excluded from 1 April 2025.

If my EV is FBT-exempt, why does it still affect my HECS and Medicare?

Even when no FBT is payable, the benefit is still a Reportable Fringe Benefits Amount (RFBA). This amount is added to your income for HECS/HELP repayments and the Medicare Levy Surcharge, so those can go up.

What is the Employee Contribution Method (ECM)?

For petrol or diesel cars (not FBT-exempt), you contribute part of the cost from your post-tax salary to reduce the FBT taxable value to nil, so no FBT is payable.

What is a residual (balloon) payment?

The amount owing at the end of the lease, set by ATO minimum percentages based on the lease term (for example, 28.13% for a 5-year lease). At the end you can pay it out, refinance, or trade in.

How accurate is the novated lease calculator?

It uses current ATO 2026–27 rates and market-average estimates for interest and running costs, which you can adjust. For an exact result, open Advanced options and enter the figures from your lease quote.

Who can get a novated lease?

You need an employer who offers salary packaging and agrees to make the deductions from your pay. It is most common in government, health, not-for-profit and larger companies. Permanent full-time and part-time employees are the usual candidates. Casual and contract workers are often declined because the income is not steady enough for a multi-year agreement.

Can I get a novated lease if I am self-employed?

Not as a sole trader, because a novated lease is a three-way agreement that needs an employer to run the salary deductions. If you operate through a company or trust and pay yourself a regular wage through payroll, you may be eligible as an employee of your own company. Other finance options such as a chattel mortgage may suit sole traders better.

What is a mortgage offset account?

An offset account is a savings or everyday transaction account linked to your home loan. The bank does not pay you interest on the balance. Instead, it reduces the amount you are charged interest on. If you have a $500,000 loan and $20,000 in your offset account, you only pay interest on $480,000.

What does "pre-tax equivalent return" mean?

Because offsetting reduces the interest you pay rather than paying you interest you earn, it is not taxed. To compare it fairly with a taxable investment like a term deposit, we convert your mortgage rate into what a taxable investment would need to pay you, before tax, to match it. The formula is: mortgage rate divided by (1 minus your marginal tax rate).

Do I pay tax on money in an offset account?

No. The balance does not earn interest, so there is no taxable income to declare. This is different from a regular savings account, where the interest you earn is taxed at your marginal rate.

Why doesn't this calculation include the Medicare levy or HECS/HELP?

This calculator uses your income tax bracket only. Medicare levy (2%) and HECS/HELP repayments can raise your true marginal cost further, so your real equivalent return may be slightly higher than the figure shown.

What's the difference between an offset account and a redraw facility?

Both reduce the interest you pay by using extra funds against your loan. An offset account is a separate, flexible account you can access anytime, like a bank account. A redraw facility lets you pay extra directly into the loan itself and redraw it later, but access is sometimes slower and may involve fees. Offset is usually more flexible; redraw sometimes has a marginally lower rate.

Where does the default interest rate come from?

The rate shown is the Reserve Bank of Australia's average variable rate for existing owner-occupier home loans (RBA series FLRHOOVA), updated periodically. It is a market average, so enter your own rate for an accurate result.

Is it better to put money in my offset account or invest it?

This depends on your loan rate, your marginal tax rate, and the expected return of the investment. This calculator's pre-tax equivalent return gives you one side of that comparison. In general, if an investment's realistic after-fee return is unlikely to beat your equivalent return, reducing effective interest via offset is the lower-risk option. This is general information, not personal financial advice. For a decision specific to your situation, a licensed financial adviser can help.

How accurate is this calculator?

Very accurate for standard employees. Uses ATO official rates, the 2025–26/2026–27 HECS marginal system, and 12% Super Guarantee. Differences may occur with deductions, FBT, or investment income.

How often is the calculator updated?

Rates are reviewed each July when the ATO publishes new rates. An automated monitor checks for ATO changes and notifies the team. Report discrepancies using the feedback button.

Found an error?

Use the "Report an issue" button below the results. We review all feedback and update the calculator promptly.