How to Compare a Job Offer Using Take-Home Pay: A Salary Australia Guide

How to Compare a Job Offer Using Take-Home Pay

When you receive a job offer in Australia, the headline figure is often the annual salary. But what really matters is the amount that reaches your bank account each fortnight after income tax and the Medicare levy. This guide helps you compare offers by focusing on take-home pay, using the latest 2026–27 tax rates and benchmarks from the Australian Taxation Office and Fair Work Ombudsman.

Start with the Right Figures

First, identify whether the salary is advertised as 'plus super' or 'including super'. From 1 July 2026, the super guarantee rate is 12% on top of your base salary up to a maximum contribution base of $270,830. If the offer says 'plus super', your take-home pay is calculated from the base salary only. If it says 'including super', the base salary is lower. Always clarify this before comparing.

Apply the Tax Rates

The 2026–27 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

You may also be eligible for the Low Income Tax Offset (LITO). The maximum LITO is $700 for taxable income up to $37,500, then it reduces by 5c per $1 until $45,000, then $325 minus 1.5c per $1 over $45,000 until $66,667. LITO can only reduce your tax to zero.

Add the Medicare Levy

The Medicare levy is 2% of your taxable income, but there are special thresholds for singles. The latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If your income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay 10c per $1 over $28,011. Above $35,013, you pay the full 2%. For full-time salaries, you will almost always pay the full 2%.

Use Benchmarks to Gauge Offers

Fair Work sets the national minimum wage at $26.44 per hour and $1,004.90 per week (from 1 July 2026). The ABS reports average weekly earnings for all employees at $1,579.20 (annualised $82,118) and for full-time adult ordinary time at $2,083.70 (annualised $108,352). These benchmarks help you see where an offer sits relative to the market. For example, a full-time offer of $80,000 is below the full-time average but above the minimum wage.

Calculate Your Take-Home

To estimate your take-home pay:

1. Take your annual base salary.
2. Subtract the tax using the brackets and LITO.
3. Subtract the Medicare levy (full 2% for most full-time salaries).
4. Divide by 26 for fortnightly pay.

For instance, a $100,000 salary (plus super) would have tax of $4,020 + 30c on $55,000 = $4,020 + $16,500 = $20,520. LITO would be $325 - 1.5c on $55,000 = $325 - $825 = -$500, so no LITO. Medicare levy at 2% = $2,000. Total deductions = $22,520. Take-home = $77,480 annually, or about $2,980 per fortnight. This is a rough estimate; your actual tax may vary due to rounding and other factors.

Compare Offers Side by Side

When comparing two offers, convert both to take-home pay. Consider also:

• Super contributions: 12% on top of base salary.
• Salary packaging options: may reduce taxable income.
• Location: no state income tax in Australia.
• Other deductions: HELP/HECS, Medicare levy surcharge (if applicable) are not included in this guide.

Use our Take-home pay guide for more detailed calculations, and check the Tax and Medicare page for the latest rates.

Remember the Disclaimer

This estimate is for resident taxpayers only. It excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice arrangements, and payroll tax-table rounding. It is not a tax assessment. Always consult the Australian Taxation Office or a tax professional for your specific situation.