How the AFL salary cap compares to your take-home pay
The AFL salary cap is not a single figure; it varies by club and year. For most workers, focus on your after-tax income using the 2026-27 tax rates.
Understand what reaches your bank account
When you receive a job offer, the headline salary can be misleading. What matters is the amount that lands in your bank account after tax and the Medicare levy. This guide shows you how to compare offers using your take-home pay, and how the AFL salary cap can serve as a reference point for high earners.
Start with the minimum wage
Fair Work sets the national minimum wage at $26.44 an hour and $1,004.90 a week from 1 July 2026. That works out to about $52,255 a year before tax. If you earn this amount, your take-home pay after tax and Medicare levy (assuming no offsets) is roughly $44,000 a year, or about $1,692 a fortnight. Use this as your baseline when evaluating any offer.
Apply the 2026-27 tax rates
The Australian Taxation Office publishes the resident tax rates for 2026-27. They are:
- $0 – $18,200: Nil
- $18,201 – $45,000: 15c for each $1 over $18,200
- $45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000
- $135,001 – $190,000: $31,020 plus 37c for each $1 over $135,000
- $190,001 and over: $51,370 plus 45c for each $1 over $190,000
These rates do not include the Medicare levy. For a full-time worker earning $60,000, the tax (excluding Medicare) is $8,520. Add the Medicare levy of 2% ($1,200) gives total tax of $9,720, leaving take-home of $50,280 a year, or about $1,934 a fortnight.
Factor in the Medicare levy
Most employees pay the Medicare levy at 2% of taxable income. The latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If your taxable income is below $28,011, you pay no levy. Between $28,011 and $35,013, the levy is phased in at 10c per dollar. Above $35,013, you pay the full 2%. These thresholds are not a new cut-off for 2026-27; they are the current figures from the ATO.
Use the Low Income Tax Offset
The Low Income Tax Offset (LITO) can reduce your tax. For 2026-27, the maximum offset is $700 for taxable incomes up to $37,500. It then reduces by 5c per dollar until $45,000, then by 1.5c per dollar until $66,667. The offset can only reduce your tax to zero. For example, a worker earning $45,000 would get a $325 offset, lowering their tax bill.
Compare offers using take-home, not headline
When you see a job ad that says "$80,000 plus super", remember that super is paid on top and does not affect your take-home. Your actual take-home depends on your tax situation. Use the Take-home pay calculator to estimate your fortnightly amount. This is the number that goes into your bank account.
The AFL salary cap as a benchmark
The AFL salary cap is the maximum total player payments a club can make each year. While the exact figure is not publicly stated in simple terms and varies by club and year, it represents a high-end benchmark for elite athletes. For most workers, comparing your own take-home to the cap is less useful than comparing to industry averages. The ABS reports average full-time ordinary time earnings of $2,083.70 a week (about $108,352 a year) as of May 2026. That gives a take-home of roughly $78,000 a year after tax and Medicare.
Consider salary packaging
Some employers offer salary packaging, which lets you sacrifice part of your salary for benefits like a car or extra super. This reduces your taxable income and can increase your take-home. However, it also reduces your super guarantee contributions. Learn more about Salary packaging.
Don't forget super
From 1 July 2026, the super guarantee rate is 12% on earnings up to $270,830 a year. This is paid by your employer on top of your salary and does not come out of your take-home. When comparing offers, consider the total package including super. Use the Super guide to understand how it builds your retirement savings.
Summary
To compare job offers, always convert the headline salary to your estimated take-home pay using the 2026-27 tax rates and Medicare levy. The AFL salary cap is a useful reference for high earners, but for most people, the minimum wage and average earnings are more relevant. Use the Tax and Medicare page for detailed rates and thresholds.
Questions
How do I calculate my take-home pay?
Start with your gross annual salary. Subtract the tax you owe using the 2026-27 resident tax rates: nil on the first $18,200, 15c per dollar from $18,201 to $45,000, 30c per dollar from $45,001 to $135,000, 37c per dollar from $135,001 to $190,000, and 45c per dollar above $190,000. Then subtract the Medicare levy of 2% of your taxable income (unless you are below the low-income thresholds of $28,011 for singles). You may also be eligible for the Low Income Tax Offset, which can reduce your tax. The result is your annual tax, which you divide by 26 to get your fortnightly take-home.
What is the Medicare levy and how does it affect my pay?
The Medicare levy is a 2% tax on your taxable income that funds Australia's public health system. Most full-time workers pay the full 2%. If your taxable income is below $28,011 (single), you pay no levy. Between $28,011 and $35,013, the levy is phased in at 10c per dollar. These are the latest published single-person thresholds. The levy is included in the tax withheld from your pay each fortnight.
How does the AFL salary cap help me compare job offers?
The AFL salary cap is the maximum total player payments a club can make each year. While the exact figure is not publicly stated in simple terms and varies by club and year, it serves as a high-end benchmark. When comparing job offers, focus on your own take-home pay rather than headline figures. Use the tax rates and Medicare levy to estimate what actually lands in your bank account each fortnight. This gives you a true comparison regardless of industry.