🦘 ATO Wage Calculator 2026
Australian Tax, Medicare Levy & Superannuation
Calculate your take-home pay with Australian tax rates
About Australian Payroll Taxes
🦘 ATO Tax System Explained
Australian employees pay PAYG (Pay As You Go) income tax, Medicare Levy (2%), and employers contribute Superannuation (11.5%). The tax-free threshold is $18,200 — you pay no tax on income below this amount.
FY 2025-26 Updates: Stage 3 tax cuts now in effect | Super: 11.5% | Medicare: 2%
📊 Understanding the ATO Wage Calculator
The ATO wage calculator helps Australian workers estimate their take-home pay by calculating PAYG income tax, Medicare levy, HECS/HELP repayments, and superannuation contributions for FY 2025-26. This tool uses the official Australian Taxation Office rates including the Stage 3 tax cuts now in effect.
Who needs this calculator? Full-time and part-time employees wanting to understand their net pay, contractors comparing hourly vs annual rates, workers with HECS debt tracking repayments, anyone changing jobs or negotiating salary, and HR professionals processing payroll. Benefits: See your exact tax breakdown, plan for salary sacrifice, and understand how super affects your total package.
🦘 Your Australian Pay Results
📋 Deductions Breakdown (Per Pay Period)
📊 Annual Summary
| Component | Per Period | Annual | % of Gross |
|---|
📐 Australian Tax Calculation Formulas
Income Tax (Resident FY 2025-26)
Variables: Base Tax = cumulative tax from lower brackets, Bracket Min = starting income for your bracket, Rate = marginal rate (16%, 30%, 37%, or 45%).
Medicare Levy
Applies to: Australian residents with taxable income above $26,000. Low-income earners receive a reduced levy. Foreign residents are exempt.
Superannuation Guarantee
OTE = Ordinary Time Earnings. Employers must contribute 11.5% of OTE to your super fund (increasing to 12% from July 2025).
📝 How to Use the ATO Wage Calculator
- Enter your gross salary — Input your annual salary before tax, or use the hourly rate option if you're paid by the hour. For hourly workers, also enter hours per week and weeks per year.
- Select your residency status — Choose Australian Resident (most common), Foreign Resident (no tax-free threshold), or Working Holiday Maker (special 15%/32.5% rates).
- Claim tax-free threshold — Select "Yes" for your main job to claim the $18,200 tax-free threshold. Select "No" for second jobs—claiming from multiple employers may result in a tax debt.
- Indicate HECS/HELP debt — If you have a study loan, select "Yes" to include compulsory repayments in your calculations. Repayments start when income exceeds $54,435.
- Configure superannuation — Standard rate is 11.5%. Choose whether super is paid on top of salary or included in your package (common in contract roles).
- Add optional deductions — Include salary sacrifice (pre-tax super contributions) and work-related deductions to see their effect on your take-home pay.
📊 ATO Wage Calculator Examples
Example 1: Full-Time Employee — $75,000 Salary
Scenario: Sarah is an Australian resident working full-time with a $75,000 salary. She claims the tax-free threshold and has no HECS debt.
Calculation:
- Gross Income: $75,000/year = $2,884.62/fortnight
- Income Tax: $4,288 + 30% × ($75,000 − $45,000) = $13,288/year
- Medicare Levy: $75,000 × 2% = $1,500/year
- Total Tax: $13,288 + $1,500 = $14,788/year ($568.77/fortnight)
- Superannuation: $75,000 × 11.5% = $8,625/year
Result: $60,212 Net Annual / $2,315.85 per fortnight | Effective Tax Rate: 19.7%
Example 2: Graduate with HECS Debt — $62,000 Salary
Scenario: Marcus just started his first job earning $62,000. He has a $45,000 HECS debt from university.
Calculation:
- Gross Income: $62,000/year
- Income Tax: $4,288 + 30% × ($62,000 − $45,000) = $9,388/year
- Medicare Levy: $62,000 × 2% = $1,240/year
- HECS Repayment: $62,000 × 1% = $620/year (income between $54,435-$62,850)
- Total Deductions: $9,388 + $1,240 + $620 = $11,248/year
Result: $50,752 Net Annual / $1,952.00 per fortnight | HECS reduces to ~$44,380 after one year
Example 3: High Earner with Salary Sacrifice — $150,000 Salary
Scenario: Jessica earns $150,000 and salary sacrifices $10,000/year to super to reduce her tax bill.
Calculation:
- Gross Income: $150,000/year
- Taxable Income (after sacrifice): $140,000
- Income Tax: $31,288 + 37% × ($140,000 − $135,000) = $33,138/year
- Medicare Levy: $140,000 × 2% = $2,800/year
- Employer Super: $150,000 × 11.5% = $17,250 + $10,000 sacrifice = $27,250 total super
- Tax Savings: $10,000 × (37% - 15%) = $2,200 saved/year
Result: $104,062 Net Annual | Extra $2,200 in pocket compared to no sacrifice
💡 Important Tips for Australian Workers
- Only one tax-free threshold: Claim the $18,200 threshold from your main job only. Claiming from multiple employers results in under-withheld tax and an ATO debt.
- Salary sacrifice smart: Contributing extra to super is taxed at 15% instead of your marginal rate (up to 37%). The concessional cap is $30,000/year total.
- Check your super: Employers must pay 11.5% super on top of your salary. Verify contributions appear in your super account within 28 days of each quarter.
- Package vs base salary: "Total package" includes super, meaning your base salary is lower. A $100,000 package = ~$89,686 base + $10,314 super.
- HECS indexation: Student loans are indexed to CPI (not interest). Pay extra if you can—it reduces faster than keeping money in a savings account.
- Medicare exemptions: Some people qualify for a Medicare Levy exemption or reduction. Low-income earners under $26,000 may get a reduction.
FY 2025-26 Tax Brackets (Residents)
| Taxable Income | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 – $18,200 | 0% (Tax Free) | $0 |
| $18,201 – $45,000 | 16% | $4,288 |
| $45,001 – $135,000 | 30% | $27,000 |
| $135,001 – $190,000 | 37% | $20,350 |
| Over $190,000 | 45% | — |
HELP/HECS Repayment Thresholds FY 2025-26
| Income Range | Repayment Rate |
|---|---|
| Below $54,435 | 0% (No repayment) |
| $54,435 – $62,850 | 1% |
| $62,851 – $66,620 | 2% |
| $66,621 – $70,618 | 2.5% |
| $70,619 – $74,855 | 3% |
| $74,856 – $79,346 | 3.5% |
| $79,347 – $84,107 | 4% |
| $84,108 – $89,154 | 4.5% |
| $89,155 – $94,503 | 5% |
| Over $151,200 | 10% |
Medicare Levy
🏥 Medicare Levy 2%
The Medicare Levy is 2% of taxable income and funds Australia's public health system. Low-income earners may receive a reduction or exemption:
- Singles: Threshold $26,000 (reduced levy up to $32,500)
- Families: Threshold $43,846 (+ $4,027 per child)
- Medicare Levy Surcharge: 1-1.5% if high income without private health insurance
Superannuation Guarantee
🏦 Super Guarantee 2025-26
11.5% is the minimum super contribution employers must pay on Ordinary Time Earnings (OTE). This increases to 12% from 1 July 2025.
- Concessional Cap: $30,000/year (employer + salary sacrifice)
- Non-Concessional Cap: $120,000/year
- 15% Tax: Super contributions are taxed at 15% in the fund
Official Resources
Frequently Asked Questions
The tax-free threshold is $18,200. Australian residents earning below this pay no income tax. You can only claim this threshold from one employer (usually your main job).
Stage 3 tax cuts reduced the 32.5% bracket to 30% and eliminated the 37% bracket for income up to $135,000. The 16% rate applies from $18,201-$45,000 instead of the old 19%.
Medicare Levy is 2% of taxable income for most taxpayers. Low-income earners (under $26,000) may get a reduction or exemption. Foreign residents and those with specific exemptions don't pay it.
The Superannuation Guarantee is 11.5% for FY 2025-26. It increases to 12% from 1 July 2025. Employers must pay this on top of your salary (unless super is included in your package).
HELP repayments start when your income exceeds $54,435. Repayment rates range from 1% to 10% depending on income. It's automatically deducted through PAYG withholding.
Salary sacrifice lets you redirect pre-tax salary into super (taxed at 15%) instead of being taxed at your marginal rate. The concessional cap is $30,000/year including employer contributions.
Foreign residents don't get the tax-free threshold. All income is taxed from the first dollar at 30% (up to $135,000), then 37% and 45%. No Medicare Levy applies.
High income earners ($93,000+ single, $186,000+ family) without private hospital cover pay an additional 1-1.5% surcharge. Getting private health insurance avoids this.
The national minimum wage is $24.10/hour or $915.90/week (38 hours). Awards and enterprise agreements may specify higher minimum rates for specific industries.
Tax returns are due by 31 October each year (or later if lodged through a tax agent). The financial year runs 1 July to 30 June. Lodge via myGov or through a registered tax agent.
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Created by OmniCalculator.Space — Your trusted source for Australian tax calculators.
Last Updated: January 2026 (FY 2025-26)