How aged care salary packaging changes your take-home pay

Understanding aged care award rates

Your take-home pay starts with the minimum rates set by the Aged Care Award 2010. Fair Work publishes weekly and hourly rates for seven general employee levels and six direct care levels. For example, a Level 1 general employee earns $1,055.40 per week ($27.77 per hour), while a Level 7 general employee earns $1,278.60 per week ($33.65 per hour). Direct care roles, such as a Qualified Direct Carer at Level 3, earn $1,376.70 per week. These rates are the minimum; your actual pay may be higher depending on your employer and experience.

Your Take-home pay depends on these award rates plus any allowances, penalty rates, and overtime. The award also specifies superannuation contributions of 12% from 1 July 2026, which are paid on top of your base rate.

How tax brackets affect your fortnight

Once you know your gross fortnightly pay, the Australian Taxation Office applies the 2026-27 tax rates. The first $18,200 is tax-free. Then you pay 15 cents for each dollar between $18,201 and $45,000, 30 cents between $45,001 and $135,000, and so on. The Low Income Tax Offset (LITO) can reduce tax by up to $700 if your taxable income is $37,500 or less, phasing out by $66,667.

For example, a full-time Level 3 general employee earning $1,139.40 per week ($59,248.80 annually) falls into the 30% bracket after the tax-free threshold. Their fortnightly tax would be calculated as: ($59,248.80 - $45,000) × 0.30 + $4,020 = $8,294.64 per year, or about $319 per fortnight before offsets. LITO may reduce this further.

The Medicare levy and your take-home

The Medicare levy is 2% of your taxable income, but the latest published single-person thresholds are $28,011 and $35,013. If your taxable income is below $28,011, you pay no levy. Between $28,011 and $35,013, the levy shades in at 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2%. Most full-time aged care workers earn above $35,013, so they pay the full levy. This is deducted from your pay along with income tax.

Superannuation contributions

From 1 July 2026, your employer must contribute super at 12% of your ordinary time earnings, up to a maximum contribution base of $270,830 per year. Super is not deducted from your take-home pay; it is paid on top. However, if you salary sacrifice into super, that amount is deducted from your pre-tax salary, reducing your taxable income and increasing your take-home pay relative to a non-sacrifice scenario.

Salary packaging explained

Aged care salary packaging is a valuable benefit for many workers, especially those employed by not-for-profit providers. Under the Fringe Benefits Tax (FBT) rules, you can package up to $15,900 per year for living expenses (the general cap) and an additional $2,650 for meal entertainment. Some employers also offer a separate cap for salary sacrificing into super.

By packaging part of your salary, you reduce your taxable income. For instance, if you earn $60,000 and package $15,900, your taxable income drops to $44,100. This moves you from the 30% bracket to the 15% bracket for that portion, saving $4,770 in tax plus $318 in Medicare levy. Your fortnightly take-home pay increases because less tax is withheld.

To see how packaging affects your specific situation, use our Clearance tool to estimate your after-tax pay. Remember that packaging caps and rules depend on your employer’s status and your individual circumstances.

Putting it all together

Your actual fortnightly take-home pay depends on your award classification, hours worked, any overtime or penalties, your tax bracket, the Medicare levy, and whether you use salary packaging. The national minimum wage is $26.44 per hour and $1,004.90 per week, but aged care award rates are higher. For a typical full-time Level 3 general employee, gross fortnightly pay is about $2,278.80. After tax (approximately $638) and Medicare levy ($45.58), the take-home is around $1,595.22. Salary packaging could increase this by several hundred dollars per fortnight.

Always check your pay slip and consult a tax professional for personalised advice. This estimate is not a tax assessment. For more on related topics, see our Guides on Salary packaging and Tax and Medicare.