Australian Salary Take-Home Pay Calculator — Net Pay After Tax FY2025–26
Real-World Examples — 2026
Sydney professional — $85,000 salary, FY2025–26
On a gross salary of $85,000: income tax is $16,972 (using Stage 3 rates), Medicare levy is $1,700, LITO is nil (phased out above $66,667). Total tax is $18,672. Net annual take-home is $66,328, or approximately $5,527/month and $2,551/fortnight. Employer also contributes $9,775/year to superannuation at 11.5%.
$120,000 salary with $10,000 salary sacrifice
Sacrificing $10,000 to super reduces taxable income from $120,000 to $110,000. Tax on $110,000 is $26,497, saving approximately $3,000 vs no sacrifice. Net take-home is approximately $81,803/year ($6,817/month). Super balance grows by $23,800/year ($13,800 employer super + $10,000 sacrifice, both taxed at 15% in the fund).
Frequently Asked Questions
What is the difference between gross salary and CTC in Australia?
In Australia, salary is typically quoted as a base salary (gross) — the amount before tax. Unlike India, CTC (Cost to Company) is not a standard Australian convention, but some employers quote 'total package' or 'total employment cost' which includes the employer super contribution on top. For example, a $85,000 salary with 12% super means the employer's total cost is approximately $95,200.
Is super included in my Australian salary?
It depends on how your employment contract is written. Some contracts say 'base salary of $85,000 plus superannuation' — meaning super is paid on top. Others say 'total package including super of $95,200' — in which case your base salary is approximately $85,000 and super is the remaining $10,200. Always clarify with your employer which basis applies.
How does salary sacrifice reduce my tax in Australia?
Salary sacrifice to super reduces your taxable income before income tax is calculated. If you earn $85,000 and sacrifice $5,000 to super, your taxable income drops to $80,000. At a 30% marginal rate, this saves $1,500 in income tax. The $5,000 goes into super taxed at only 15% (concessional contributions tax). Net benefit is $750 per $5,000 sacrificed.
What is the tax-free threshold in Australia?
The Australian tax-free threshold is $18,200. Income up to this amount is taxed at 0% for resident individuals. When you start a new job, you should claim the tax-free threshold on your TFN declaration form — but only with one employer at a time. Claiming it with multiple employers can result in under-withholding and a tax debt at year-end.
Why does my pay calculator result differ from my actual pay?
The calculator uses standard ATO Schedule 1 withholding rates for employees claiming the tax-free threshold with no other adjustments. Actual PAYG withholding may differ slightly due to weekly vs fortnightly pay cycles, leave loading, bonuses, HECS debt repayments (deducted via payroll), study and training support loans, or your employer using a different withholding method. The result is a close estimate, not guaranteed to match every payslip.