How the average salary changes your fortnight: tax brackets, Medicare levy and super

What changes your fortnightly take-home pay

When you look at your payslip, the number that lands in your bank account is not the same as your annual salary. Several factors chip away at the gross amount: income tax brackets, the Medicare levy, and how super is handled. Understanding these can help you budget better and avoid surprises.

In this guide, we focus on the average salary for full-time adult ordinary time earnings — $108,352 per year according to the Australian Bureau of Statistics (May 2026, seasonally adjusted). But whether you earn that, the national minimum wage ($52,255 per year), or something in between, the same principles apply.

Tax brackets and the Low Income Tax Offset

The 2026–27 tax rates are progressive. For a full-time employee earning the average salary of $108,352, your tax is calculated as:

• First $18,200: nil
• Next $26,800 (up to $45,000): 15c per $1 = $4,020
• Remaining $63,352 (up to $135,000): 30c per $1 = $19,005.60
• Total tax before offsets: $23,025.60

The Low Income Tax Offset (LITO) reduces tax for lower incomes. At $108,352, LITO phases out completely (it ends at $66,667), so you receive no offset. Your tax after LITO remains $23,025.60.

For someone on the national minimum wage ($52,255), the calculation is:

• Taxable income over $18,200: $34,055 at 15c = $5,108.25
• LITO: at $52,255, you get $325 minus 1.5c per $1 over $45,000 = $325 – $108.83 = $216.17
• Tax after LITO: $5,108.25 – $216.17 = $4,892.08

These figures are estimates only — your actual tax may vary due to rounding in payroll systems or other factors. Use our Clearance tool for a personalised estimate.

The Medicare levy: a flat 2% with a safety net

The Medicare levy is straightforward for most full-time workers: 2% of your taxable income. For the average salary of $108,352, that's $2,167.04 per year. On the minimum wage, it's $1,045.10.

But if your income is low, you may pay less. The latest published single-person Medicare thresholds are $28,011 (lower) and $35,013 (upper). If you earn below $28,011, you pay no levy. Between $28,011 and $35,013, you pay 10c per $1 over the lower threshold. Above $35,013, you pay the full 2%. Most full-time employees exceed the upper threshold, so they pay the full rate.

Note: the Medicare levy surcharge (for those without private hospital cover) is not included in this guide. It can add an extra 1% to 1.5% for higher incomes.

Super: not taken from your take-home (usually)

Superannuation is a key part of your remuneration, but it does not reduce your take-home pay if your salary is quoted as 'plus super'. From 1 July 2026, the super guarantee rate is 12%, paid by your employer on top of your base salary. The maximum contribution base is $270,830 per year.

If your salary is advertised as 'including super', then the 12% is part of your total package, and your take-home will be lower. Always clarify with your employer. For more details, see our guide on Super.

Putting it together: fortnightly take-home examples

Let's see what lands in your bank account each fortnight (26 fortnights per year).

National minimum wage ($52,255)

• Annual tax (after LITO): $4,892.08
• Medicare levy: $1,045.10
• Total deductions: $5,937.18
• Annual take-home: $46,317.82
• Fortnightly take-home: $1,781.45

Average full-time ordinary earnings ($108,352)

• Annual tax (after LITO): $23,025.60
• Medicare levy: $2,167.04
• Total deductions: $25,192.64
• Annual take-home: $83,159.36
• Fortnightly take-home: $3,198.44

These examples assume no HELP/HECS debt, no Medicare levy surcharge, no salary sacrifice, and no payroll rounding. They are estimates, not tax assessments. For your specific situation, use our Take-home pay calculator.

Why the average salary matters

The average salary is a useful benchmark, but your personal take-home depends on your exact income, tax offsets, and whether super is included. The Australian Taxation Office provides the official tax tables, and Fair Work sets the minimum wage. By understanding how brackets, the Medicare levy, and super interact, you can better plan your fortnightly budget.

For more benchmarks, see our Average pay page. And if you're considering salary packaging, check our Salary packaging guide.

Remember: the figures above are for resident taxpayers only. Non-residents have different tax rates. Always consult a tax professional for personalised advice.