How to Compare Job Offers Using Net Salary
Net salary varies by gross pay, tax bracket, and Medicare levy; for the national minimum wage of $26.44 per hour, the weekly net is roughly $855 after tax and Medicare for a full-time worker.
What Is Net Salary?
Net salary is the amount that lands in your bank account after your employer deducts income tax and the Medicare levy. It is also called take-home pay. Understanding your net salary is essential when comparing job offers because two roles with the same gross pay can leave you with different amounts each fortnight.
In Australia, your employer withholds tax from each pay using the tax tables provided by the Australian Taxation Office. The Medicare levy (2% of your taxable income) is also withheld unless you earn below the single threshold of $28,011. If you earn between $28,011 and $35,013, you pay a reduced levy at 10 cents per dollar over the lower threshold.
Your net salary does not include superannuation. Most job advertisements state a salary "plus super", meaning the 12% super guarantee is paid on top of your gross salary and goes into your super fund, not your bank account.
How to Estimate Your Net Salary
To estimate your net salary for the 2026–27 tax year, follow these steps:
- Start with your annual gross salary. This is the figure in your employment contract before any deductions.
- Apply the resident tax rates. For 2026–27, the Australian Taxation Office rates are:
- $0 – $18,200: Nil
- $18,201 – $45,000: 15c for each $1 over $18,200
- $45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000
- $135,001 – $190,000: $31,020 plus 37c for each $1 over $135,000
- $190,001 and over: $51,370 plus 45c for each $1 over $190,000
- Add the Medicare levy. Multiply your taxable income by 2% (unless you are below the threshold).
- Subtract any tax offsets. The Low Income Tax Offset (LITO) can reduce your tax by up to $700 if your taxable income is below $66,667. It phases out gradually.
- Divide by your pay frequency. Most employees are paid fortnightly (26 pays per year) or monthly (12 pays).
For example, a full-time worker on the national minimum wage of $26.44 per hour works 38 hours per week, earning $1,004.90 per week or $52,255 per year. After tax (about $6,328) and Medicare (about $1,045), the annual net salary is roughly $44,882, or about $1,726 per fortnight.
Use our Take-home pay guide for a more detailed breakdown.
Using Benchmarks to Compare Offers
When evaluating a job offer, compare the net salary against reliable benchmarks. Fair Work sets the national minimum wage at $26.44 per hour and $1,004.90 per week from 1 July 2026. The Australian Bureau of Statistics reports average weekly total earnings for all employees at $1,579.20 (including part-time) and full-time adult ordinary time earnings at $2,083.70 per week.
These benchmarks help you see where an offer sits relative to the market. But remember: net salary depends on your personal tax situation. A higher gross salary may push you into a higher tax bracket, reducing the marginal benefit. Also consider salary packaging options, which can lower your taxable income and increase your net salary.
For more context, see our Benchmarks page.
Factors That Affect Net Salary
Several factors can change your net salary beyond the basic tax calculation:
- HELP/HECS repayments: If you have a student loan, your employer will deduct additional amounts once your income exceeds the repayment threshold.
- Medicare levy surcharge: If you earn above a certain income and do not have appropriate private hospital cover, you may pay an extra 1% to 1.5%.
- Salary packaging: Arrangements like novated leases or superannuation sacrifice reduce your taxable income, increasing net salary.
- Tax offsets: LITO and other offsets can reduce tax payable.
This estimate does not include those variables. For a personalised calculation, use the Clearance tool on this site.
Why Net Salary Matters for Job Comparisons
Focusing on net salary helps you compare offers on an equal footing. One job may offer a higher gross salary but less favourable tax treatment or fewer salary packaging options. Another may have a lower gross but better net due to offsets or lower Medicare liability.
Always ask recruiters whether the advertised salary is inclusive of super or plus super. If it is "plus super", your net salary is based on the gross figure only. If it is "inclusive", the super is part of the package and your take-home pay will be lower.
For more on this topic, read our Salary packaging guide.
Questions
What is the difference between gross salary and net salary?
Gross salary is the amount before any deductions. Net salary (also called take-home pay) is what reaches your bank account after income tax and the Medicare levy are withheld. Superannuation is not deducted from your take-home pay if the job is advertised as 'plus super'.
How do I calculate my net salary for a job offer?
Start with your annual gross salary. Apply the 2026–27 resident tax rates from the Australian Taxation Office: nil on the first $18,200, then 15c per dollar up to $45,000, 30c up to $135,000, and so on. Add the Medicare levy of 2% of taxable income (unless you earn below $28,011). Subtract any tax offsets like the Low Income Tax Offset (LITO) if eligible. The result is your estimated net salary.
Why should I compare job offers using net salary rather than gross?
Two jobs with the same gross salary can have different net salaries due to tax brackets, Medicare levy, or salary packaging options. Comparing net salary gives you a clearer picture of your actual spending power and helps you make a fairer decision between offers.