SEEK Salary Calculator 2026 - Australian Pay & Tax Calculator

Calculate your accurate take-home pay in Australia for 2026 with this comprehensive SEEK salary calculator that estimates net income after Australian Taxation Office income tax, 12% superannuation guarantee, 2% Medicare levy, HECS-HELP debt repayments, and all applicable deductions. Whether you're evaluating a job offer found on SEEK, negotiating salary, planning your budget, or comparing employment opportunities across Australian states, this calculator provides precise after-tax income projections using official ATO 2025-26 tax rates and the latest superannuation thresholds effective from 1 July 2025.

Understanding Australian Salary Calculations for 2026

Australian salary calculations involve multiple components including income tax based on progressive tax brackets, the Medicare levy funding universal healthcare, superannuation contributions securing retirement savings, and potential HECS-HELP repayments for those with study loans. The Australian Taxation Office determines tax rates annually, with the 2025-26 financial year maintaining the Stage 3 tax cuts implemented in July 2024 that reduced tax burdens across most income brackets while increasing the superannuation guarantee from 11.5% to 12%.

Australian Tax Brackets 2025-26 (Applicable for 2026)

The Australian progressive income tax system applies increasing marginal tax rates as income rises through defined tax brackets. Following the Stage 3 tax cut reforms that took effect on 1 July 2024 and continue through the 2025-26 financial year, the current tax brackets provide tax relief particularly for middle-income earners while maintaining progressivity across the income spectrum.

These tax brackets represent significant reform from previous years. The Stage 3 tax cuts lowered the bottom marginal rate from 19% to 16%, reduced the 32.5% rate to 30%, increased the 37% bracket threshold from $120,000 to $135,000, and raised the top 45% bracket from $180,000 to $190,000. These changes reduced tax burden for approximately 13.6 million Australian taxpayers.

For example, calculating tax on $75,000 taxable income:

Low Income Tax Offset (LITO) for 2025-26

The Low Income Tax Offset provides tax relief to low and middle-income earners by reducing tax liability after initial tax calculations. For the 2025-26 income year, LITO provides up to $700 in tax reduction with the following structure:

• Maximum offset: $700 for taxable incomes up to $37,500
• Phase-out range: Reduces by 5 cents for every dollar earned between $37,500 and $45,000
• Complete phase-out: No LITO available for incomes above $45,000 (since $7,500 × 0.05 = $375... wait, let me recalculate)

The LITO calculation works as follows:

For example, a taxpayer earning $40,000 receives LITO of $700 - (($40,000 - $37,500) × 0.05) = $700 - $125 = $575, reducing their final tax liability by $575. LITO applies automatically when lodging tax returns and is already factored into PAYG withholding calculations by employers.

Medicare Levy 2026

The Medicare levy funds Australia's universal public health system Medicare, providing all Australian residents access to subsidized healthcare, hospital treatment, and pharmaceutical benefits. The standard Medicare levy rate is 2% of taxable income for most taxpayers, though exemptions and reductions apply to low-income earners, certain visa holders, and those meeting specific criteria.

For a taxpayer earning $75,000, Medicare levy equals $75,000 × 0.02 = $1,500 annually. The Medicare levy applies in addition to income tax, increasing total tax burden by 2 percentage points across all income levels.

Medicare Levy Exemptions and Reductions

Low-income earners below specified thresholds receive Medicare levy exemptions or reductions:

• Full exemption threshold (singles): $26,000 for 2025-26
• Full exemption threshold (couples): $43,846 plus $4,027 for each dependent child
• Phase-in range: Gradual increase from zero to full 2% levy between exemption threshold and threshold + 10%

Certain foreign residents, recent arrivals serving waiting periods for Medicare access, and those with medical exemptions may also receive Medicare levy exemptions or reductions requiring supporting documentation with tax returns.

Medicare Levy Surcharge (MLS)

The Medicare Levy Surcharge applies an additional tax to higher-income earners without adequate private hospital insurance, incentivizing private health coverage to reduce demand on the public healthcare system. MLS operates separately from the standard 2% Medicare levy, adding 1.0% to 1.5% additional tax depending on income level for those without qualifying private health insurance.

MLS income thresholds and rates for 2025-26:

Family thresholds increase by $1,500 for each dependent child after the first. For example, a single person earning $120,000 without private health insurance pays 1.25% MLS ($1,500 annually) in addition to standard income tax and Medicare levy. This surcharge can be avoided by maintaining appropriate private hospital cover with an excess no higher than $750 (singles) or $1,500 (families).

Superannuation Guarantee 12% (2025-26)

The Superannuation Guarantee requires employers to contribute a percentage of employee ordinary time earnings into approved superannuation funds to build retirement savings. For the 2025-26 financial year (1 July 2025 to 30 June 2026), the superannuation guarantee rate increased from 11.5% to 12%, reaching the legislated maximum rate established under previous reforms.

For an employee earning $75,000 annually, employer superannuation contributions equal $75,000 × 0.12 = $9,000 per year. These contributions are paid on top of base salary (not deducted from wages) and are taxed at 15% within the superannuation fund rather than at the employee's marginal tax rate.

The 12% superannuation guarantee applies to employees earning more than $450 per month from a single employer (this threshold was removed from 1 July 2022, so SG now applies to all employees regardless of monthly earnings). Casual and part-time employees receive the same 12% rate as full-time workers. Contractors classified as employees for superannuation purposes also receive SG contributions.

Superannuation Contribution Caps

Annual limits apply to tax-advantaged superannuation contributions:

• Concessional (before-tax) cap: $30,000 per year for 2025-26 (includes employer contributions plus salary sacrifice amounts)
• Non-concessional (after-tax) cap: $120,000 per year for those under age 75
• Catch-up contributions: Unused concessional cap amounts from previous years can be carried forward for up to 5 years if total super balance is below $500,000

Exceeding concessional caps triggers excess contributions tax at the contributor's marginal rate plus interest charges. Strategic use of salary sacrifice to maximize concessional contributions within the $30,000 cap can provide significant tax savings for medium and high-income earners.

HECS-HELP Repayment Thresholds 2025-26

Higher Education Loan Program (HELP) debt including HECS-HELP, FEE-HELP, and other study loans requires mandatory repayments once income exceeds minimum thresholds. For the 2025-26 income year, HELP repayments commence at $54,435 annual income, increasing progressively to 10% of income for those earning above $151,201.

HECS-HELP repayment rates for 2025-26:

For example, a graduate earning $75,000 with HECS debt falls in the 3.5% repayment rate bracket, requiring annual repayments of $75,000 × 0.035 = $2,625. These repayments are automatically withheld through PAYG taxation and credited against outstanding HELP debt balances, reducing the principal owed.

HECS-HELP debt is indexed annually on 1 June based on Consumer Price Index changes, though 2023 reforms capped indexation to reduce debt growth during high inflation periods. Voluntary repayments can be made at any time without penalty to reduce outstanding balances and future indexation impacts.

Salary Packaging and Salary Sacrifice

Salary packaging allows employees to restructure remuneration packages by sacrificing pre-tax salary to receive certain benefits or additional superannuation contributions, potentially reducing taxable income and overall tax liability. The most common salary sacrifice arrangement involves additional superannuation contributions beyond the employer's mandatory 12% guarantee.

Salary Sacrifice to Superannuation

Sacrificing salary to superannuation converts post-tax income taxed at marginal rates (16%-45%) into concessional super contributions taxed at just 15% within the super fund, generating immediate tax savings for individuals on marginal rates above 15%:

For example, an employee on the 30% marginal tax rate (earning $45,001-$135,000) sacrificing $10,000 to superannuation saves $10,000 × (0.30 - 0.15) = $1,500 in annual tax. The same $10,000 sacrifice for someone on the 45% rate saves $10,000 × (0.45 - 0.15) = $3,000.

Salary sacrifice reduces taxable income for calculating income tax, Medicare levy, and HECS-HELP repayments. However, sacrificed amounts count toward the $30,000 annual concessional contributions cap combined with employer SG contributions. An employee receiving $9,000 employer super can salary sacrifice up to $21,000 additional before reaching the cap.

Division 293 Tax on High-Income Super Contributions

Individuals with income plus concessional super contributions exceeding $250,000 annually pay an additional 15% tax on contributions above this threshold (total 30% tax on these contributions instead of the standard 15%). This Division 293 tax reduces the superannuation tax advantage for very high earners, though salary sacrifice may still provide net benefits depending on circumstances.

State and Territory Payroll Variations

While income tax and Medicare levy apply uniformly across Australia as federal taxes, minor differences exist between states and territories affecting net pay:

Payroll Tax: State payroll taxes apply to employers (not employees) on total wages above thresholds ranging from $700,000 to $2 million depending on jurisdiction. These taxes don't directly affect employee take-home pay but may indirectly influence wage negotiations.

WorkCover/Workers Compensation: Employers pay workers compensation insurance premiums to state schemes at rates varying by industry and state. These are employer costs not deducted from employee wages.

Regional Variations: No state-level income taxes exist in Australia unlike some other jurisdictions, simplifying tax calculations nationwide.

Understanding Your Payslip

Australian payslips must include specific information under Fair Work regulations to ensure transparency and enable employees to verify correct payment:

Gross Pay: Total remuneration before deductions including base salary, overtime, allowances, bonuses, and commissions.

PAYG Withholding: "Pay As You Go" tax withheld by employers each pay period and remitted to the ATO on your behalf, calculated using ATO withholding schedules.

Superannuation: Employer super guarantee contribution amount (12% of ordinary time earnings) paid to your nominated super fund.

Net Pay: Take-home amount after all deductions, transferred to your nominated bank account.

Year-to-Date Totals: Cumulative amounts for the financial year (1 July to 30 June) helping track annual income and deductions.

Fair Work Minimum Wage 2026

The Fair Work Commission sets Australia's National Minimum Wage annually, establishing the minimum hourly pay rate for award-free employees. From 1 July 2025, the National Minimum Wage increased to $24.10 per hour ($915.91 per 38-hour week) for adult employees, representing a 3.75% increase from the previous year's $23.23 per hour.

Most Australian employees are covered by Modern Awards setting industry and occupation-specific minimum rates often exceeding the National Minimum Wage. The Fair Work Pay Calculator available at calculate.fairwork.gov.au helps employers and employees determine correct award rates, penalty rates for weekends and overtime, allowances, and total entitlements based on specific award coverage.

Calculating Take-Home Pay Example

Complete example calculating net take-home pay for an Australian employee earning $75,000 annually:

Frequently Asked Questions

How much tax do I pay on $75,000 in Australia?

On a $75,000 annual salary in Australia for 2025-26, you pay $13,288 in income tax plus $1,500 Medicare levy (2%), totaling $14,788 in tax and levies before any offsets or HECS repayments. If you have HECS debt, add approximately $2,625 (3.5% repayment rate). Your total tax burden is $17,413 (23.2% effective rate with HECS) or $14,788 (19.7% without HECS), leaving take-home pay of $57,587 or $60,212 respectively.

What is the superannuation rate for 2026?

The superannuation guarantee rate for the 2025-26 financial year (which covers 2026) is 12% of ordinary time earnings. This rate took effect from 1 July 2025, increasing from the previous 11.5% rate. Employers must contribute 12% of your gross salary to your nominated superannuation fund in addition to your base wage. For a $75,000 salary, employer super contributions equal $9,000 annually.

How do I calculate my take-home pay in Australia?

Calculate Australian take-home pay by subtracting income tax (based on ATO tax brackets), 2% Medicare levy, any Medicare levy surcharge if applicable, HECS-HELP repayments if you have study debt, and other deductions from your gross salary. Use the formula: Take-Home = Gross Income - Income Tax - Medicare Levy - MLS - HECS - Other Deductions. Superannuation (12%) is paid by your employer on top of salary and doesn't reduce take-home pay.

What is LITO and who gets it?

The Low Income Tax Offset (LITO) is an automatic tax reduction of up to $700 for low and middle-income earners. You receive the full $700 offset if your taxable income is $37,500 or less. LITO phases out by 5 cents for each dollar earned between $37,500 and $45,000, becoming zero at incomes above $45,000. LITO is automatically applied when you lodge your tax return and is factored into PAYG withholding by employers.

When do I start paying HECS-HELP debt back?

HECS-HELP debt repayments begin automatically once your repayment income exceeds $54,435 for the 2025-26 financial year. Repayments start at 1% of income ($54,435-$62,850 range) and increase progressively to 10% for incomes above $160,601. Repayments are automatically deducted through PAYG withholding by your employer. If your income stays below $54,435, no compulsory repayments are required though you can make voluntary payments anytime.

Is superannuation included in my salary package?

In Australia, salary packages are typically quoted as base salary exclusive of superannuation, meaning employer super contributions (12%) are paid on top of your advertised salary. However, some total remuneration packages may include super, requiring clarification during job negotiations. For example, "$75,000 plus super" means $75,000 base salary plus $9,000 super ($84,000 total cost to employer), while "$75,000 including super" means approximately $66,964 base salary plus $8,036 super.

What is the Medicare Levy Surcharge and how do I avoid it?

The Medicare Levy Surcharge is an additional 1.0%-1.5% tax on single taxpayers earning over $97,000 (or families over $194,000) who don't have private hospital insurance. You avoid MLS by maintaining appropriate private hospital cover with an excess no higher than $750 (singles) or $1,500 (families). For a single person earning $120,000, the 1.25% surcharge costs $1,500 annually, often exceeding the cost of basic private hospital insurance.

Can I salary sacrifice to reduce my tax?

Yes, salary sacrifice to superannuation reduces your taxable income and overall tax burden. Sacrificed amounts are taxed at 15% within your super fund instead of your marginal tax rate (16%-45%), generating tax savings of 1%-30% depending on your income bracket. The combined total of employer super (12%) plus salary sacrifice cannot exceed the $30,000 annual concessional contributions cap. Salary sacrifice is most beneficial for taxpayers on marginal rates above 16%.

What is the average salary in Australia for 2026?

The average full-time adult salary in Australia is approximately $94,000-$98,000 annually as of 2025-26, though this varies significantly by industry, occupation, and location. High-paying sectors include mining ($148,000 average), finance ($104,000), IT ($93,600), and professional services ($90,000+). Entry-level positions typically range from $55,000-$65,000, while experienced professionals earn $80,000-$120,000+, and senior executives command $150,000-$250,000+ depending on organization size and industry.

Where can I find official Australian tax information?

Official Australian tax information is available from the Australian Taxation Office at ato.gov.au, which provides tax calculators, PAYG withholding schedules, super rates, and comprehensive tax guidance. The Fair Work Ombudsman at fairwork.gov.au offers the Fair Work Pay Calculator and minimum wage information. Superannuation thresholds and rates are published at ato.gov.au/super. SEEK.com.au provides salary insights and job market data for Australian employment opportunities.