Your Fortnightly Take Home Pay: How Tax Brackets, Medicare and Super Change It

Understanding Your Fortnightly Take Home Pay

Your take home pay is the amount that lands in your bank account after your employer withholds income tax and the Medicare levy. Super contributions are not taken from your pay unless you choose to salary sacrifice. This guide explains how the 2026-27 tax brackets, the Medicare levy, and super affect what you receive each fortnight.

How Tax Brackets Change Your Fortnightly Pay

The Australian Tax Office (ATO) sets progressive tax rates. For 2026-27, the first $18,200 of your annual taxable income is tax-free. Then:

• $18,201 to $45,000: 15c for each dollar over $18,200
• $45,001 to $135,000: $4,020 plus 30c per dollar over $45,000
• $135,001 to $190,000: $31,020 plus 37c per dollar over $135,000
• Over $190,000: $51,370 plus 45c per dollar over $190,000

Your employer uses these brackets to calculate withholding each pay period. The Low Income Tax Offset (LITO) can reduce tax by up to $700 for incomes up to $37,500, then phases out. This offset is applied in your annual return, not per pay, so your fortnightly take home pay may be slightly lower than your final average. For a precise estimate, use the Take-home pay guide.

The Medicare Levy and Your Fortnightly Deduction

The Medicare levy is 2% of your taxable income, withheld from every pay. However, if you earn below the single threshold of $28,011, you pay nothing. Between $28,011 and $35,013, a shading rate applies: 10c per dollar over $28,011 until you reach $35,013, where the full 2% kicks in. For example, if you earn $30,000, your levy is ($30,000 - $28,011) × 10c = $198.90 annually, or about $7.65 per fortnight. Above $35,013, the full 2% is withheld. This directly reduces your take home pay. Learn more at Tax and Medicare.

Super: Not Deducted from Your Take Home Pay

From 1 July 2026, your employer must contribute super at 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. This is paid on top of your salary, not taken from it. If a job advertisement says "$80,000 plus super", your take home pay is calculated on the $80,000, and the super is additional. If you salary sacrifice, you choose to have extra super deducted from your pay, which lowers your take home pay but may reduce tax. For details, see Super.

Benchmark Figures for Context

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 total earnings for all employees at $1,579.20, and full-time adult ordinary time earnings at $2,083.70. These benchmarks help you compare your pay. Visit Benchmarks for more.

Putting It All Together

Your fortnightly take home pay depends on your salary, the tax brackets, the Medicare levy (including any shading), and whether you salary sacrifice super. Use the Clearance tool to estimate your net pay. Remember, this is an estimate only; it excludes HELP/HECS, the Medicare levy surcharge, and payroll rounding. Always check with your payroll department for exact figures.