Net Salary in Australia: What You Actually Take Home After Tax and Super

What Is Net Salary?

Net salary is the money you actually get to spend — the amount left after the tax and Medicare levy come out. In Australia, the word "net salary" usually means your gross pay before any deductions. But when someone asks "net salary" they mean what lands in your bank account after the Australian Taxation Office takes its share.

Your gross salary is the number on your contract. Your net salary is what you actually take home. The difference is income tax (using the resident tax rates) and the Medicare levy (2%). Superannuation guarantee is extra: your employer pays 12% on top of your ordinary time earnings from 1 July 2026, but that money goes into your super fund, not your pocket. So super does not reduce your net salary.

Gross Pay and the Salary Index

The Australian Bureau of Statistics reports that full-time adult average weekly ordinary time earnings in May 2026 were $2,083.70 per week. Annualised, that is $108,352. We call that index 100 on the Salary Index. Every dollar of gross pay can be compared to that line.

For example:

• National minimum wage (from 1 July 2026): $26.44 per hour, $1,004.90 per week, annualised $52,255. Index: 48.2.
• Mining industry average ordinary time earnings: $3,224.20 per week, annualised $167,658. Index: 154.7.
• Retail trade: $1,581.60 per week, annualised $82,243. Index: 75.9.

These are gross figures. To work out net salary you need to subtract tax and Medicare.

How Tax and Medicare Affect Net Salary

For the 2026–27 year, resident tax rates (excluding Medicare) are:

• $0 to $18,200: nil
• $18,201 to $45,000: 15% on the excess over $18,200
• $45,001 to $135,000: 30% on the excess over $45,000
• $135,001 to $190,000: 37% on the excess over $135,000
• $190,001 and above: 45% on the excess over $190,000

Plus a flat 2% Medicare levy on your entire taxable income.

So for a person earning the national minimum wage ($52,255 gross):

• Tax: $0 on first $18,200, then 15% on $26,800 = $4,020, then 30% on $7,255 = $2,176.50. Total tax = $6,196.50.
• Medicare levy: 2% of $52,255 = $1,045.10.
• Net salary = $52,255 - $6,196.50 - $1,045.10 = $45,013.40 (roughly $44,500 after rounding for simplicity).

For someone on the national line ($108,352 gross):

• Tax: $0 on $18,200, 15% on $26,800 = $4,020, 30% on $63,352 = $19,005.60. Total tax = $23,025.60.
• Medicare: 2% of $108,352 = $2,167.04.
• Net = $108,352 - $23,025.60 - $2,167.04 = $83,159.36.

These estimates ignore HELP repayments, salary sacrifice, Medicare levy reduction, and the Medicare levy surcharge. Your actual net salary may differ.

Super Guarantee: Extra, Not Deducted

From 1 July 2026 the super guarantee rate is 12% of ordinary time earnings, up to a maximum contribution base of $270,830. Your employer pays this on top of your gross salary. It does not reduce your net salary. For example, if you earn $80,000 gross, your employer pays an extra $9,600 into your super. Your net salary is still calculated from $80,000.

Junior Rates and Net Salary

Junior employees (under 21) covered by the national minimum wage are paid a percentage of the adult rate. From 1 July 2026:

• Under 16: $9.73 per hour
• 16 years: $12.51
• 17 years: $15.28
• 18 years: $18.06
• 19 years: $21.81
• 20 years: $25.83

A modern award can set different junior rates. The net salary for a junior will be lower because the gross is lower, but the same tax and Medicare rules apply (though many juniors earn below the tax-free threshold).

State and Industry Comparisons

State index figures (based on full-time adult ordinary time earnings):

• NSW: 101.2 ($109,658 gross)
• VIC: 98.0 ($106,137)
• QLD: 97.9 ($106,064)
• SA: 94.6 ($102,450)
• WA: 106.9 ($115,825)
• TAS: 88.6 ($96,008)
• NT: 95.2 ($103,173)
• ACT: 109.9 ($119,090)

Net salary in each state will follow the same tax rates, but the gross differs. For example, a person on the WA average ($115,825) would have a higher net than someone on the Tasmanian average ($96,008), assuming same deductions.

Industry examples (gross ordinary time):

• Mining: $167,658 (index 154.7)
• Professional, scientific & technical: $124,259 (index 114.7)
• Education & training: $114,291 (index 105.5)
• Health care & social assistance: $105,934 (index 97.8)
• Accommodation & food services: $78,515 (index 72.5)

Your net salary in these industries will vary with the gross amount.

How to Use the Salary Index for Net Salary

The Salary Index compares gross annual pay to the national line. To estimate net salary, apply the tax and Medicare to your gross. The index helps you see where your gross sits relative to the average, but net will be a different number. For example, an index of 48.2 (minimum wage) gives a net of about 41% of the national line gross.

Always check your award or agreement for minimum rates. The pay guides on this site summarise award minimums. The Fair Work Ombudsman provides the National Minimum Wage and junior rates. The Australian Bureau of Statistics publishes average weekly earnings by industry and state.

Remember: net salary is what you spend. Super is extra. Tax and Medicare are the main deductions. Use the index to compare your gross pay, then calculate net for your own situation.