Bus driver salary: what you actually take home after tax

Bus driver salary: what you actually take home after tax

When you see a bus driver salary in a job ad, the figure is usually the gross annual amount – before tax, the Medicare levy, and other deductions. What matters for your budget is the amount that lands in your bank account each fortnight. This guide helps you understand the award rates, the tax you’ll pay, and how to compare offers using take-home pay.

Understanding the award rates

The Passenger Vehicle Transportation Award 2020 (MA000063) sets minimum pay for bus drivers in Australia. From the first full pay period on or after 1 July 2026, the Fair Work Ombudsman’s pay guide shows six grades. A Grade 1 driver (entry-level) earns $27.34 per hour, or $1,038.80 per week for full-time work (38 hours). A Grade 6 driver (highest classification) earns $33.70 per hour, or $1,280.50 per week. These are the minimums – some employers pay above award.

Your actual bus driver salary depends on your grade, any allowances, and penalty rates for weekends or overtime. For example, Saturday work attracts a 50% loading (time-and-a-half), and Sunday work is double time. The award also includes an articulated bus allowance of $17.52 per shift if you drive a bendy bus, and a first aid allowance of $21.33 per week if you hold a certificate and are appointed.

From gross to net: tax and Medicare

Once you know your gross annual bus driver salary, you need to subtract income tax and the Medicare levy. For the 2026–27 tax year, the resident tax rates are:

• Nil on the first $18,200
• 15c for each dollar from $18,201 to $45,000
• 30c for each dollar from $45,001 to $135,000
• 37c for each dollar from $135,001 to $190,000
• 45c for each dollar over $190,000

The Low Income Tax Offset (LITO) can reduce your tax: up to $700 if your taxable income is $37,500 or less, then it phases out. The Medicare levy is 2% of your taxable income, but if you earn below $28,011 (single) you pay nothing; between $28,011 and $35,013 you pay a reduced rate (10c per $1 over the lower threshold). Full-time bus drivers will almost always pay the full 2%.

For example, a Grade 3 bus driver earning $29.55 per hour for 38 hours a week, 52 weeks a year, has a gross annual salary of about $58,390. After tax (approximately $8,500) and Medicare (about $1,168), the take-home is around $48,700 per year, or about $1,873 per fortnight. This is a rough estimate – your actual amount depends on allowances, overtime, and whether you have HELP/HECS debt.

Comparing job offers

When you have two bus driver job offers, don’t just compare the headline salary. Follow these steps:

1. Convert to annual gross – Include base pay, guaranteed allowances (like first aid or articulated bus), and expected penalty rates if the roster is fixed.
2. Check super – From 1 July 2026, the super guarantee is 12%. If the ad says “$60,000 plus super”, your total package is $60,000 + $7,200 super = $67,200. If it says “$60,000 including super”, your salary is actually $53,571 plus $6,429 super. The take-home is very different.
3. Estimate tax and Medicare – Use the rates above or a Take-home pay calculator. Remember that allowances are taxable.
4. Consider non-cash benefits – Some employers offer salary packaging (e.g., for a car or living expenses) which can reduce your taxable income. See our Salary packaging guide.
5. Look at the roster – Weekend and overtime penalties can boost your take-home significantly. The award requires overtime pay for hours beyond 38 per week or 10 per day.

Using the award to your advantage

The Fair Work Ombudsman’s pay guide is your reference. It lists minimum rates, allowances, and penalty rates. If your employer offers a flat rate above the minimum, check that it still covers penalties when you work unsocial hours. Some employers use “all-inclusive” rates that include penalty loadings – make sure you understand what you’re entitled to.

Your bus driver salary is more than just the hourly rate. By focusing on take-home pay, you can make a fair comparison and avoid surprises at tax time. Use our Clearance tool to estimate your net income for any gross salary.