How to Compare a Job Offer Using Your Take-Home Pay After the Salary Increase 2026

Focus on What Reaches Your Bank Account

When you receive a job offer, the headline salary can be misleading. What matters is the amount that lands in your account each fortnight after tax, the Medicare levy, and any other deductions. With the salary increase 2026 – which includes both the new minimum wage and the tax cuts effective from 1 July 2026 – your take-home pay may be higher than you expect. This guide shows you how to compare offers using after-tax income.

The 2026–27 Tax Rates at a Glance

The Australian Taxation Office shows that for the 2026–27 income year, resident tax 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

These rates do not include the Medicare levy of 2%. The Low Income Tax Offset (LITO) can reduce your tax further if your taxable income is below $66,667. For full details, see the Tax and Medicare page.

Medicare Levy and Thresholds

The Medicare levy is 2% of your taxable income, but you may pay less if you earn below the single-person thresholds. The latest published thresholds are $28,011 and $35,013. If your taxable income is between these amounts, the levy is shaded at 10c per $1 over the lower threshold. Full-time salaries almost always attract the full 2%.

Minimum Wage and Benchmarks

Fair Work sets the national minimum wage at $26.44 per hour or $1,004.90 per week from 1 July 2026. This is the floor for employees not covered by an award. Many awards pay higher rates. Use the Minimum wage page to check your industry.

For context, the ABS Average Weekly Earnings (May 2026, seasonally adjusted) show:

• All employees average total earnings: $1,579.20 per week ($82,118 annualised)
• Full-time adult ordinary time earnings: $2,083.70 per week ($108,352 annualised)

These benchmarks help you see where an offer sits relative to the market.

How to Compare Offers Using Take-Home Pay

Step 1: Identify the Gross Salary

Look at the contract or offer letter. Is the figure ‘base salary’ or ‘total remuneration’? Base salary excludes super; total remuneration includes it. If the ad says ‘plus super’, the super is additional and does not reduce your take-home. If it says ‘including super’, the super is part of the package and your cash salary is lower.

Step 2: Estimate Your Tax and Medicare

Use the 2026–27 tax brackets above. For example, a $90,000 salary:

• Tax on first $18,200: $0
• Tax on $18,201 to $45,000: ($45,000 – $18,200) × 0.15 = $4,020
• Tax on $45,001 to $90,000: ($90,000 – $45,000) × 0.30 = $13,500
• Total tax: $4,020 + $13,500 = $17,520
• Medicare levy: $90,000 × 0.02 = $1,800
• Total deductions: $19,320
• Take-home: $90,000 – $19,320 = $70,680 per year, or about $2,718 per fortnight.

Remember that LITO may reduce tax if you earn under $66,667. The Take-home pay tool does this calculation for you.

Step 3: Factor in Super

Super is not deducted from your take-home pay if the salary is quoted as ‘plus super’. However, if the offer is ‘total package’, subtract the super component to find your cash salary. For example, a $100,000 total package with 12% super means your base salary is $100,000 ÷ 1.12 ≈ $89,286. Your take-home is then calculated on $89,286.

Step 4: Compare Fortnightly Amounts

Most employees are paid fortnightly. Divide your annual take-home by 26 to see what hits your bank account each pay cycle. This is the number that matters for your budget.

What the Salary Increase 2026 Means for You

The salary increase 2026 is not just about the minimum wage rise. The tax cuts mean that a worker earning $90,000 will pay about $1,000 less tax in 2026–27 than in 2025–26. Combined with the super guarantee increase to 12%, your total remuneration package may be worth more even if the base salary stays the same.

When you receive a job offer, ask the employer:

• Is the salary base or total package?
• Is super paid on top?
• Are there any salary packaging options (e.g., novated lease, meal cards)?

Use the Salary packaging guide to see how these can boost your take-home.

Final Tips

• Always use the after-tax amount, not the gross figure, to compare offers.
• Check if the role is covered by an award – award rates may be higher than the national minimum.
• Remember that the Medicare levy surcharge applies if you earn above a threshold and don’t have appropriate private hospital cover. This is separate from the standard Medicare levy.
• For a personalised estimate, use the Clearance tool on this site.

By focusing on take-home pay, you can make an informed decision that reflects your real financial position.