How to compare job offers using your take-home pay and salary continuance cover

Comparing job offers: what reaches your bank account

When you receive a job offer, the figure you see in the job advertisement is often the base salary before tax, plus super. The amount that actually reaches your bank account after income tax and the Medicare levy is your take-home pay. To compare offers fairly, you need to understand how each component affects your after-tax income.

Understanding your base salary and super

Start with the base salary. The national minimum wage is $26.44 an hour and $1,000.90 a week. For the 2026–27 tax year, the tax rates from $18,200 to $45,000 are 15 cents per dollar, then 30 cents per dollar up to $135,000. The Medicare levy is 2% of your taxable income, but if you earn below $28,011 (single) you pay no levy; between $28,011 and $35,013 you pay a reduced rate. Most full-time salaries pay the full 2%. Super is 12% from 1 July 2026, but job ads often say "plus super" – meaning the advertised salary does not include super. When comparing, note whether super is additional or included.

Tax and Medicare levy

Use the tax tables from the Australian Taxation Office to estimate your tax. For example, if your annual salary is $60,000, your tax (excluding Medicare) would be $8,520, plus Medicare levy of $1,200, total $9,720, leaving $50,280 take-home. But this is an estimate only; your actual tax depends on deductions and offsets. The Low Income Tax Offset (LITO) can reduce tax up to $700 for incomes under $37,500, phasing out by $66,667. For more details, see our Tax and Medicare guide.

The role of salary continuance cover

Some employers offer salary continuance cover as a benefit. This insurance replaces a portion of your income if you cannot work due to illness or injury. According to the , premiums you pay personally for income protection are deductible, but if the cover is through your super fund and premiums are deducted from your contributions, you cannot claim a deduction. Payments you receive under such a policy are taxable income. The explains that insurance through super can be cheaper and easier to get, but may have limitations. When comparing job offers, consider whether the employer provides salary continuance cover and how it affects your net cost. If you pay premiums from after-tax income, you can claim a deduction, reducing your taxable income. If the cover is through super, the premiums reduce your super balance but not your take-home pay directly. However, any payout you receive is taxable, so factor that into your financial planning.

Putting it all together

To compare offers, calculate your estimated take-home pay using the tax rates and Medicare levy. Include any salary continuance cover as a benefit that may reduce your risk but does not directly increase your take-home pay unless you receive a payout. Use our Take-home pay calculator for a quick estimate. Remember that the figures are estimates and not a tax assessment. Always consult a tax professional for your specific situation.