Question 1

How is take-home pay calculated in Australia?

Accepted Answer

Your take-home pay is your gross salary minus income tax, Medicare levy, and any HECS/HELP repayment. Superannuation (12%) is paid by your employer on top of your salary — it does not reduce your take-home pay. Income tax uses the 2025-26 ATO tax brackets with the Low Income Tax Offset (LITO) of up to $700 applied automatically.

Question 2

What are the 2025-26 income tax brackets?

Accepted Answer

For 2025-26: $0–$18,200 nil; $18,201–$45,000 at 16%; $45,001–$135,000 at 30%; $135,001–$190,000 at 37%; $190,001+ at 45%. These reflect the Stage 3 tax cuts which took effect 1 July 2024.

Question 3

What is the Medicare Levy Surcharge?

Accepted Answer

The Medicare Levy Surcharge (MLS) is an extra tax for higher-income earners without private hospital cover, ranging from 1%–1.5%: $93,001–$108,000 at 1.0%; $108,001–$144,000 at 1.25%; $144,001+ at 1.5%.

Question 4

When do I start repaying my HECS/HELP debt?

Accepted Answer

HECS/HELP repayments start automatically once your income crosses approximately $54,435 for 2025-26. They are collected via the tax system and range from 1%–10% of total income. Your debt is also indexed to CPI each year on 1 June.

Question 5

Does superannuation come out of my take-home pay?

Accepted Answer

No. Employer super contributions are 12% of your salary — the final legislated Superannuation Guarantee rate in effect from 1 July 2025. They are paid on top of your salary and do not reduce your take-home pay. Voluntary salary-sacrifice super contributions would reduce your taxable income and take-home pay.

Take-Home Pay Calculator

Frequently Asked Questions

Buying a home? Talk to a mortgage broker.