Home / Guides / Technology
Software Engineer Salary Australia: Gross Pay, Super, and Tax in 2026
Understand software engineer salary Australia with gross pay, super, and tax breakdown. Compare to national index and industry benchmarks from ABS and Jobs and Skills Australia.
The precise median salary for software engineers is not published by Jobs and Skills Australia, but industry and occupation benchmarks suggest a salary index around 100–110, meaning gross pay near or above the national full-time adult ordinary-time earnings of $108,352.
What is a software engineer salary in Australia?
When you search for "software engineer salary Australia", you're likely after a reliable figure to compare against your own pay or a job offer. The short answer is that no single official median exists for this occupation. Jobs and Skills Australia, the government agency that tracks occupational data, reports that median weekly earnings for Software Engineers (ANZSCO 261313) are not available. That doesn't mean we can't estimate where a software engineer's pay sits – we just need to use broader benchmarks from the Australian Bureau of Statistics and understand how the Salary Index works.
Using the salary index to compare
The Salary Index sets 100 as the national full-time adult ordinary-time earnings, which from the ABS Average Weekly Earnings survey (May 2026) is $2,083.70 per week, annualised to $108,352. Any gross annual salary divided by $108,352 and multiplied by 100 gives the index. For example, a $120,000 salary gives an index of 111 – meaning 11% above the national line.
For software engineers, we can look at two relevant ABS benchmarks from the May 2025 Employee Earnings and Hours survey:
- Professionals (the broad occupation group): average weekly total cash earnings $2,049.60, annualised ~$106,579, index 98.3.
- Information Media and Telecommunications (a common industry for software roles): average weekly total cash earnings $2,304.80, annualised ~$119,850, index 110.6.
- Professional, Scientific and Technical Services (another key industry): average weekly total cash earnings $2,072.40, annualised ~$107,765, index 99.5.
These are averages, not medians, and they include all levels of experience. A junior software engineer might earn below these figures, while a senior engineer could be well above. The index range of 98–111 gives a rough guide: many software engineers earn close to or above the national line.
Gross pay, super, and tax
Let's take a concrete example. Suppose a software engineer in Sydney earns a gross salary of $120,000 per year. Here's how the components break down:
- Gross ordinary-time earnings: $120,000 (index 111).
- Super guarantee: From 1 July 2026, the employer must contribute 12% on top, up to the maximum contribution base of $270,830. That's $14,400 into super, making total remuneration $134,400.
- Tax (2026–27 resident rates):
- Nil on first $18,200
- 15% on next $26,800 ($4,020)
- 30% on next $75,000 (from $45,001 to $120,000) = $22,500
- Total income tax: $26,520
- Plus Medicare levy 2%: $2,400
- Total tax: $28,920
- Take-home pay: $91,080
If the same engineer earned $100,000 (index 92.3), tax would be about $22,467 plus $2,000 Medicare, take-home $75,533. At $140,000 (index 129), tax jumps to $35,467 plus $2,800 Medicare, take-home $101,733.
State and industry comparisons
Where you work also matters. The states page shows that New South Wales has an index of 101.2 (annualised $109,658), while Western Australia is 106.9 ($115,825) and the ACT is 109.9 ($119,090). A software engineer in Perth or Canberra might see higher average pay than in Tasmania (index 88.6).
Industry also plays a role. The industries page shows that Mining has an index of 154.7, while Professional, Scientific and Technical Services sits at 114.7. Software engineers in mining tech roles could earn significantly more than those in retail or accommodation.
Awards and minimums
Most software engineers are not covered by a modern award – they are usually employed under individual contracts or enterprise agreements. However, if an award does apply, the minimum rates from the Fair Work Commission's Modern Awards Pay Database would set a floor. The national minimum wage from 1 July 2026 is $26.44 per hour ($1,004.90 per week, index 48.2). Entry-level award rates can be lower, but professional software roles typically pay well above minimums.
Where to find more
For a deeper dive into how the index is calculated, see how the index works. You can also explore pay guides for other occupations, or browse topics for related salary discussions.
The bottom line
While a precise "software engineer salary Australia" figure is not officially published, the combination of ABS industry and occupation averages, plus the Salary Index, gives you a reliable framework. Most software engineers earn a gross salary between $100,000 and $130,000, placing them around or above the national line. Use the index to compare any offer, and remember to factor in super and tax to understand your real take-home pay.
Questions people ask
What does the salary index mean for a software engineer in Australia?
The Salary Index compares gross annual earnings to the national full-time adult ordinary-time earnings line of $108,352 (index 100). For example, if a software engineer earns $120,000 gross, the index is about 111. This means they earn 11% above the national benchmark. The index helps you see where a pay figure sits relative to the average full-time worker.
How does superannuation affect a software engineer's total remuneration?
From 1 July 2026, the super guarantee is 12% of ordinary-time earnings, up to a maximum contribution base of $270,830. For a software engineer earning $120,000 gross, the employer must contribute an additional $14,400 into super. This is on top of salary and is not included in the salary index (which uses gross ordinary-time earnings). Total remuneration including super would be $134,400.
What is the tax on a typical software engineer salary in 2026–27?
For a resident earning $120,000 gross in 2026–27, tax is calculated using the progressive rates: nil on the first $18,200, 15% on the next $26,800, 30% on the next $90,000 (up to $135,000), and 37% on the amount above $135,000. For $120,000, tax is about $26,467 plus 2% Medicare levy ($2,400), giving total tax of $28,867. Take-home pay would be approximately $91,133, excluding HELP or other deductions.