Payroll Officer Salary: Award Minimums, Market Rates, and What You Take Home After Tax
Payroll officer salaries range from the award minimum of $61,469 per year (Level 3) to a median market rate of $83,512 per year, with take-home pay varying significantly after tax and Medicare.
Introduction
If you're a payroll officer or considering the role, you want to know what lands in your bank account each fortnight. The payroll officer salary varies by award classification and market rates, but the biggest factors changing your take-home are the tax brackets, the Medicare levy, and how super is handled. This guide breaks down the numbers for 2026–27.
Award Minimums for Payroll Officers
Most private-sector payroll officers are covered by the Clerks—Private Sector Award 2020. The award doesn't have a specific "payroll officer" classification; instead, your duties determine your level. According to , the minimum rates from 1 July 2026 are:
- Level 2 (payroll data entry and initial processing): $29.45 per hour, $58,193 per year
- Level 3 (calculates and maintains wage and salary records): $31.11 per hour, $61,469 per year
- Level 4 (calculates wage requirements, prepares payroll for authorisation, advises on conditions and super): $32.67 per hour, $64,553 per year
- Level 5 (administers the organisation's salary and payroll requirements): $33.99 per hour, $67,174 per year
Casual employees receive a 25% loading on these hourly rates. The national minimum wage is $26.44 per hour and $1,004.90 per week, so even the lowest payroll officer level is above that.
Market Rates for Payroll Officers
Many payroll officers earn above the award minimum. Jobs and Skills Australia reports median full-time earnings for Payroll Clerks (ANZSCO 5513) at $1,606 per week, or about $83,512 per year. That's $424 per week above the Level 3 award minimum. The median hourly rate is $44. Market rates depend on experience, industry, and location.
Tax and Medicare: What Changes Your Fortnight
Your take-home pay is what's left after income tax and the Medicare levy. For 2026–27, 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) reduces tax for incomes up to $66,667. The Medicare levy is 2% for full-time workers, with the latest published single-person thresholds at $28,011 and $35,013. Below $28,011 you pay nothing; between $28,011 and $35,013 you pay a reduced rate; above $35,013 you pay the full 2%.
For a payroll officer on the Level 3 award minimum of $61,469:
- Income tax after LITO: about $8,883
- Medicare levy: $1,229
- Total deductions: $10,112
- Take-home: $51,357 per year, $988 per week, or $1,976 per fortnight
For a payroll officer on the median market salary of $83,512:
- Income tax (no LITO): $15,574
- Medicare levy: $1,670
- Total deductions: $17,244
- Take-home: $66,268 per year, $1,274 per week, or $2,548 per fortnight
See Take-home pay for a detailed calculator and Tax and Medicare for more on thresholds.
Super and Your Take-Home Pay
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 your salary is advertised as "plus super", the employer pays super on top, so your take-home is based on the salary figure. If the salary is "inclusive of super", the employer uses part of your pay to meet the super obligation, reducing your take-home. Always clarify which applies.
Super is not deducted from your pay like tax; it's an additional contribution to your retirement fund. For more, see Super.
Fortnightly Take-Home Examples
Here's how the numbers stack up for a full-time payroll officer:
| Salary | Annual take-home | Fortnightly take-home |
|---|---|---|
| $61,469 (Award Level 3) | $51,357 | $1,976 |
| $83,512 (Market median) | $66,268 | $2,548 |
These estimates use 2026–27 tax rates and the full Medicare levy. They exclude HELP/HECS, the Medicare levy surcharge, and salary sacrifice. Use the Clearance tool for a personalised estimate.
Your fortnightly pay changes when you move into a higher tax bracket or cross the Medicare levy thresholds. For example, earning $45,001 instead of $45,000 means you pay 30c on each additional dollar instead of 15c, and you start losing LITO. Understanding these brackets helps you plan your budget and negotiate your payroll officer salary.
Final Thoughts
Whether you're starting at award minimum or earning above market median, knowing your take-home pay is key. The award provides a safety net, but many payroll officers earn more based on experience and duties. Use the resources on this site to calculate your after-tax income and make informed career decisions.
Questions
What is the minimum payroll officer salary under the Clerks Award?
Under the Clerks—Private Sector Award 2020, a payroll officer who calculates and maintains wage and salary records is classified at Level 3. From the first full pay period on or after 1 July 2026, the minimum rate is $31.11 per hour, $1,182.10 per week, or $61,469 per year. Casual employees receive a 25% loading, making the minimum $38.89 per hour. Higher duties at Level 4 or Level 5 attract higher minimums.
How does the Medicare levy affect my take-home pay as a payroll officer?
The Medicare levy is 2% of your taxable income for full-time workers. The latest published single-person Medicare thresholds are $28,011 and $35,013. If your income is below $28,011, you pay no levy. Between $28,011 and $35,013, you pay a reduced rate (10 cents per dollar over the lower threshold). Above $35,013, you pay the full 2%. For a payroll officer earning $61,469, the levy is $1,229 per year, reducing your fortnightly take-home by about $47.
Does super come out of my payroll officer salary?
Usually, super is paid on top of your salary. If a job ad says "$61,469 plus super", the employer contributes an additional 12% (from 1 July 2026) into your super fund, and your take-home pay is based on the $61,469 salary. If the ad says "$61,469 inclusive of super", then the employer uses part of that amount to meet the super guarantee, reducing your take-home. Always check whether super is included or additional.