How to Calculate Your Take-Home Pay in Australia
Starting a new job or moving to Australia?
One of the first things you’ll want to know is how much will actually land in your bank account each payday.
This guide explains how to calculate your take-home pay — the amount you keep after income tax and deductions — especially for migrants and temporary residents who are not eligible for Medicare.
1. Start with Your Gross Income
Your gross income is the total amount you earn before any taxes or deductions are taken out.
This is usually listed in your employment contract or payslip as:
Annual salary (e.g. $85,000 per year), or
Hourly rate (e.g. $38/hour)
If you’re a full-time employee, you’ll usually be paid fortnightly or monthly.
2. Subtract Income Tax (FY26 Tax Brackets)
Financial year: 1 July 2025 to 30 June 2026. Rates exclude the Medicare Levy.
(Most new migrants on temporary visas are not eligible for Medicare and can claim an exemption.)
| Taxable income (AUD) | Tax on this income | Marginal rate |
|---|---|---|
| $0 – $18,200 | Nil | 0% |
| $18,201 – $45,000 | 16% of amount over $18,200 | 16% |
| $45,001 – $135,000 | $4,288 + 30% of amount over $45,000 | 30% |
| $135,001 – $190,000 | $31,288 + 37% of amount over $135,000 | 37% |
| $190,001 and over | $51,638 + 45% of amount over $190,000 | 45% |
Note: From 1 July 2026 the 16% bracket is legislated to reduce to 15% (and to 14% from 1 July 2027).
Australia uses a progressive tax system — the higher your income, the higher your marginal tax rate.
3. No Medicare Levy (for Most Migrants)
If you’ve arrived in Australia on a temporary visa — such as subclass 482, 485, 500 (student), or 417 (working holiday) — you’re generally not entitled to Medicare benefits.
That means you don’t need to pay the Medicare Levy, which is normally 2% of your taxable income.
However, employers often withhold it by default, assuming all employees are eligible. You can claim it back when you lodge your tax return, by:
Requesting a Medicare Entitlement Statement (MES) from Services Australia, and
Selecting “Full exemption” in the Medicare Levy section of your tax return.
If you’re not eligible for Medicare, excluding the levy will increase your take-home pay.
4. Check Other Deductions
Your payslip may also include:
Superannuation (super) — usually 11% of your base pay, paid by your employer on top of your salary.
This does not reduce your take-home pay; it goes into your retirement savings account.Other deductions such as salary packaging, insurance, or union fees (if applicable).
Most new migrants also won’t have student loans (HELP/HECS), so you can safely ignore that section when estimating your pay.
5. Example: Calculating Take-Home Pay (No Medicare Levy)
Let’s say you earn $85,000 per year as a temporary resident who’s not eligible for Medicare.
ItemCalculationAmountGross Income$85,000Tax Payable$4,288 + 30% × ($85,000 – $45,000)$16,288Medicare LevyNot applicable$0Net Take-Home (after tax)$85,000 – $16,288$68,712 per year or roughly $2,642 per fortnight
If you were eligible for Medicare, your take-home pay would be about $1,700 lower per year due to the 2% levy.
6. When Will You Get Paid?
Most employers pay fortnightly or monthly, directly into your nominated bank account.
Your payslip should include:
Gross and net pay
Tax withheld
Super contributions
Year-to-date totals
7. Bonus Tip — Use PayCalculator.com.au
To get an instant and accurate estimate of your take-home pay, visit PayCalculator.com.au.
It automatically applies the latest tax rates and lets you include (or exclude) the Medicare Levy — making it ideal for migrants who aren’t eligible for Medicare.
You can also switch between fortnightly, monthly, or annual views and include details like bonuses or salary packaging.
Key Takeaway
If you’re new to Australia and not eligible for Medicare, your take-home pay will be slightly higher than most online estimates that assume you pay the 2% levy.
Understanding your income tax helps you:
Plan your budget
Set savings goals
Read your payslip confidently
At Tiga Panah Advisory, we help new migrants and young professionals navigate Australia’s financial system — from your first payslip to your first tax return.