How Erling Haaland's salary illustrates what changes your fortnight: tax brackets, Medicare levy, and super

What changes your fortnight: tax brackets, Medicare levy, and super

When you look at your payslip, the number that matters most is the amount that lands in your bank account. That take-home pay is shaped by three key factors: the tax brackets you fall into, the Medicare levy, and super contributions. Even a superstar salary like Erling Haaland's salary—reported at £27.3 million per year (approx AUD $52 million) by —is subject to the same rules, just at a much higher scale.

How tax brackets work

Australia uses a progressive tax system. The first $18,200 you earn is tax-free. Then you pay:

• 15c for every dollar between $18,201 and $45,000
• 30c for every dollar between $45,001 and $135,000
• 37c for every dollar between $135,001 and $190,000
• 45c for every dollar over $190,000

For someone on the national minimum wage of $26.44 an hour ($1,004.90 a week, or $52,255 a year), the tax bill is modest. But for a high earner like Haaland, almost all of their income falls into the top 45% bracket. That means every extra dollar earned above $190,000 is taxed at nearly half.

The Medicare levy: a flat 2%

The Medicare levy is an additional 2% of your taxable income. It applies to most residents. There are lower thresholds for singles: if you earn less than $28,011, you pay no Medicare levy; between $28,011 and $35,013, you pay a reduced rate (10c per $1 over the lower threshold); above $35,013, you pay the full 2%. For a full-time worker on the minimum wage, the levy is about $1,045 a year. For Haaland, it would be over $1 million. The levy has no upper cap, so high incomes face a significant extra charge.

Super: not deducted from take-home pay

Super is a separate contribution your employer makes on top of your salary. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830 per quarter. That means if you earn $52 million, your employer only pays super on the first $270,830 per quarter—about $32,500 per quarter in super. The rest of your salary is super-free. Importantly, super is not deducted from your take-home pay; it's an additional cost to your employer. But it does affect your total remuneration package.

Putting it together: what changes your fortnight

Your fortnightly take-home pay depends on where your annual salary sits in the brackets. For a minimum-wage worker earning $52,255 a year, the tax and Medicare levy are relatively low. For someone on the average full-time ordinary time earnings of $108,352 (from ABS data), the tax is higher but still manageable. But for a salary like Erling Haaland's, the top marginal rate plus the Medicare levy means that more than half of every additional dollar earned goes to tax and levy.

To see how your own salary stacks up, use our Take-home pay calculator. You can also explore the Tax and Medicare page for detailed rates and thresholds.

What about the Low Income Tax Offset?

The Low Income Tax Offset (LITO) can reduce your tax bill if you earn under $66,667. The maximum offset is $700 for incomes up to $37,500, then it phases out. For high earners like Haaland, LITO doesn't apply.

Remember: this is an estimate

The figures here are based on the 2026–27 tax rates and the Medicare levy thresholds published by the ATO. They exclude HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. Always check your own situation with the Australian Taxation Office for personalised advice.