Understanding your software engineer salary: gross, package, and take-home pay

Gross salary, package, and take-home: what you actually earn

When you see a job ad for a software engineer, the figure quoted is often your gross salary or your total package. But what reaches your bank account each fortnight is your take-home pay – the amount after income tax, the Medicare levy, and any other deductions. This guide helps you untangle the numbers so you know exactly what your software engineer salary is worth.

What the data says about software engineer pay

Official sources do not publish a single median salary for software engineers. The Jobs and Skills Australia profile for Software Engineers (ANZSCO 261313) notes that median weekly earnings are not available . However, the broader category of Professionals – which includes software engineers – had average weekly total cash earnings of $2,049.60 for all employees, according to the ABS Employee Earnings and Hours survey for May 2025 . That works out to roughly $106,579 a year before tax. But remember: this is an average across all professionals, not a guarantee for your role.

The three numbers you need to know

1. Gross salary – This is your base annual pay before any deductions. For example, a job might offer $120,000 gross.

2. Total package – Often written as “$120,000 + super”. Superannuation is 12% from 1 July 2026, so the total package would be $134,400. But super is not available to you until retirement; it’s paid into your super fund.

3. Take-home pay – What you actually receive after tax and Medicare. Use the Take-home pay calculator to estimate yours.

How tax and Medicare affect your software engineer salary

For the 2026–27 tax year, 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

You also pay the Medicare levy of 2% of your taxable income, unless you earn below the low-income thresholds. The latest single-person thresholds are $28,011 and $35,013. If your taxable income is between those amounts, you pay a reduced rate (10c per $1 over $28,011). Full-time salaries almost always pay the full 2%.

The Low Income Tax Offset (LITO) can reduce your tax by up to $700 if your taxable income is $37,500 or less, then phases out.

Common mix-ups

• “Plus super” vs “including super” – If the ad says “$120,000 plus super”, your gross salary is $120,000 and super is extra. If it says “$120,000 including super”, your gross is about $107,143 (since super is 12% of gross). Always clarify.
• Salary packaging – Some employers offer salary sacrifice for cars or laptops. This reduces your taxable income but may affect your take-home pay differently. See Salary packaging for details.
• Fortnightly vs monthly pay – Most employers pay fortnightly. Multiply your gross weekly earnings by 52, then divide by 26 to get your fortnightly amount. The same applies to tax withholding.

Using the minimum wage as a benchmark

The national minimum wage is $26.44 per hour and $1,004.90 per week (from 1 July 2026. That’s $52,255 a year for a 38-hour week. A software engineer salary is almost always well above this, but it’s a useful baseline for comparison.

Final thought

Your software engineer salary is more than the number on the job ad. Use the Tax and Medicare guide to understand your exact tax, and always check your pay slip against the Clearance tool to confirm your employer’s withholding is correct.

Remember: this is an estimate, not a tax assessment. For personal advice, consult a registered tax agent.