What changes your fortnightly pay: tax brackets, Medicare levy, and super compared to the average salary in India

What changes your fortnightly pay

When you look at your bank account after payday, the amount that lands is not your gross salary. Three main factors change it: the income tax brackets, the Medicare levy, and superannuation. Understanding these helps you plan your budget and compare offers.

Income tax brackets for 2026–27

For the 2026–27 tax year, Australian residents pay tax on a sliding scale. The first $18,200 is tax-free. Then:

• $18,201 to $45,000: 15 cents for each dollar over $18,200
• $45,001 to $135,000: $4,020 plus 30 cents for each dollar over $45,000
• $135,001 to $190,000: $31,020 plus 37 cents for each dollar over $135,000
• $190,001 and over: $51,370 plus 45 cents for each dollar over $190,000

Your employer withholds tax each pay using the ATO monthly tax table. If you claim the tax-free threshold, less is taken out. The Low Income Tax Offset (LITO) can reduce your tax further if you earn under $66,667, but it can only bring your tax to zero.

The Medicare levy

Most people pay the Medicare levy of 2% of taxable income. However, if you are single and your taxable income is below $28,011, you pay nothing. Between $28,011 and $35,013, you pay 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2%. These are the latest published single-person thresholds. The levy is collected through withholding, so it directly reduces your take-home pay.

Superannuation

From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. If a job advertisement says "$80,000 plus super", the super is paid on top of your salary. If it says "$80,000 including super", the super is part of that figure and your take-home pay will be lower. Always check which wording is used.

How the average salary in India compares

To give you perspective, the average salary in India is much lower. According to the Periodic Labour Force Survey 2025, regular wage or salaried employees earn an average of 22,699 rupees per month (about 410 AUD). Casual labourers earn around 453 rupees per day. In Australia, the national minimum wage is $26.44 per hour or $1,004.90 per week, and the average full-time ordinary time earnings are $2,083.70 per week. The difference reflects different living costs, productivity, and tax systems. While the average salary in India is lower, the tax structure there also differs, with different brackets and exemptions.

Putting it together: your fortnightly take-home

To estimate your fortnightly pay, start with your gross fortnightly salary. Subtract the tax withheld using the ATO tables, then subtract the Medicare levy (unless you are below the threshold). If super is deducted from your pay (not paid on top), subtract that too. The result is your take-home pay. Use our Take-home pay guide for a detailed walkthrough, or check the Tax and Medicare page for the latest rates.

Remember, this is an estimate. Your actual withholding may vary if you have a HELP debt, salary sacrifice, or other adjustments. Always refer to your payslip and the ATO's tools for precise figures.

Sources

The Indian earnings data comes from the India Labour Observatory's PLFS 2025 release . Australian tax rates and Medicare thresholds are from the Australian Taxation Office and Moneysmart . The minimum wage is set by Fair Work Ombudsman.