How to Compare a Commercial Pilot Salary Offer Using Take-Home Pay

Understanding Commercial Pilot Salary Under the Award

When you receive a job offer as a commercial pilot in Australia, the headline figure is usually an annual salary or an hourly rate. But what actually reaches your bank account after tax and the Medicare levy? This guide helps you compare offers by focusing on take-home pay, using the latest award rates and tax rules.

The Air Pilots Award Sets Minimums

The Air Pilots Award 2020 (MA000046) covers most commercial pilots. It contains minimum annual salaries for captains and first officers based on aircraft type and weight. For example, a captain on a single-engine aircraft under 1360 kg earns a minimum of $29.47 per hour, while a captain on a wide-body double-deck aircraft earns $119.93 per hour, according to the Fair Work Ombudsman's pay guide . These rates are the floor – many employers pay above award.

Converting Annual Salary to Hourly and Weekly

The award only lists annual salaries. To get an hourly rate for full-time or part-time work, divide the annual salary by 52 (weeks) then by 38 (ordinary hours per week). For casual pilots, divide by 800 (flying hours per year) and add a 25% loading. The Fair Work Ombudsman provides a clear example: a casual captain on a multi-engine aircraft between 3360 kg and 5660 kg would have a casual hourly rate of around $126.16 per hour after loading.

Tax and Medicare Levy in 2026-27

Once you have your gross pay, you need to subtract income tax and the Medicare levy. For the 2026-27 tax year, the resident tax rates are:

• Up to $18,200: nil
• $18,201 to $45,000: 15c per $1 over $18,200
• $45,001 to $135,000: $4,020 plus 30c per $1 over $45,000
• $135,001 to $190,000: $31,020 plus 37c per $1 over $135,000
• Over $190,000: $51,370 plus 45c per $1 over $190,000

The Low Income Tax Offset (LITO) can reduce tax by up to $700 for incomes under $37,500, phasing out by $66,667. The Medicare levy is 2% of 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 pilots almost always pay the full 2%.

Example: Take-Home Pay for a Typical Captain

Consider a full-time captain on a narrow-body aircraft (e.g., Boeing 737) earning the award minimum of $92.52 per hour. At 38 hours per week, that's $3,515.76 per week, or $182,819.52 annually. Using the 2026-27 tax brackets:

• Tax on $182,819: $31,020 on first $135,000 plus 37c on $47,819 = $17,693.03, total tax $48,713.03
• LITO: not applicable (income over $66,667)
• Medicare levy: 2% of $182,819 = $3,656.38
• Total deductions: $52,369.41
• Annual take-home: $130,450.11
• Weekly take-home: $2,508.66

This is a simplified estimate – it excludes HELP/HECS, Medicare levy surcharge, and salary sacrifice. Use our Tax and Medicare page for a more precise calculation.

Comparing Offers: Salary vs. Package

When comparing two commercial pilot salary offers, look beyond the base pay. Consider:

• Superannuation: From 1 July 2026, the super guarantee is 12% on earnings up to $270,830. If an offer says "$120,000 plus super", your employer adds $14,400 to your super account – it's not deducted from your take-home. If the offer says "$120,000 including super", your take-home is lower because super is part of that figure.
• Allowances: The award includes additions to salary for things like command instrument rating, multi-engine endorsements, and flying overseas. These are treated as salary for tax purposes.
• Hours and Rosters: A higher hourly rate may come with fewer guaranteed hours. Always check the guaranteed minimum annual salary.
• Casual vs. Permanent: Casual rates include a 25% loading but you lose paid leave and job security. The take-home may be higher per hour, but annual income can be less stable.

Using the Award to Your Advantage

You can find your exact classification in Schedule A of the Air Pilots Award. The award also specifies minimum salaries for aerial application operations, with weekly rates from $978.10 for beginners to $1,116.80 for experienced pilots. Remember, these are minimums – you can negotiate above them.

Final Thoughts

Your commercial pilot salary is just one part of your financial picture. To truly compare offers, calculate the amount that will land in your bank account each fortnight after tax and Medicare. Use our Clearance tool to run your own numbers, and check the Benchmarks page for industry averages. Always verify your award classification with the Fair Work Ombudsman's Pay and Conditions Tool.