What's the average salary in Australia and how to compare job offers using take-home pay
The average full-time adult ordinary time earnings are $108,352 per year before tax, but your take-home pay depends on tax brackets, the Medicare levy, and the Low Income Tax Offset.
Understanding your take-home pay
When you receive a job offer in Australia, the headline salary is only part of the story. What really matters is the amount that lands in your bank account after income tax and the Medicare levy. This guide helps you compare offers by focusing on take-home pay, using the latest official figures.
What's the average salary in Australia?
You might be wondering whats the average salary in australia to see how an offer stacks up. The Australian Bureau of Statistics (ABS) publishes two key benchmarks. For all employees (including part-time), the average weekly total earnings is $1,579.20, which rounds to $82,118 per year. For full-time adult ordinary time earnings (excluding overtime and employer super), the average is $2,083.70 per week, or $108,352 per year. These are before-tax figures. Your take-home pay will be lower after deductions.
The minimum wage benchmark
Fair Work Ombudsman sets the national minimum wage at $26.44 per hour and $1,004.90 per week (from 1 July 2026). That works out to about $52,255 per year before tax. If you're comparing a job offer, this is the legal floor. Use it as a baseline, but remember that many roles pay above this.
How tax and the Medicare levy reduce your salary
For the 2026–27 tax year, resident tax rates are:
- Nil on the first $18,200
- 15c per dollar from $18,201 to $45,000
- 30c per dollar from $45,001 to $135,000
- 37c per dollar from $135,001 to $190,000
- 45c per dollar above $190,000
The Low Income Tax Offset (LITO) can reduce tax by up to $700 for incomes up to $37,500, then phases out. The Medicare levy adds 2% of your taxable income, but the latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If you earn below $28,011, you pay no levy; between $28,011 and $35,013, you pay 10c per dollar over the lower threshold; above $35,013, you pay the full 2%.
Example: take-home pay on the average full-time salary
Take the full-time adult ordinary time earnings of $108,352. Using the 2026–27 rates:
- Tax on first $18,200: $0
- Tax on $18,201 to $45,000: $4,020
- Tax on $45,001 to $108,352: $19,005.60
- Total tax: $23,025.60
- LITO: $0 (income too high)
- Medicare levy: $2,167.04
- Total deductions: $25,192.64
- Estimated annual take-home: $83,159.36
- Fortnightly take-home: about $3,198.44
This is an estimate only. It excludes HELP/HECS, the Medicare levy surcharge, salary sacrifice, and payroll rounding. Use the Clearance tool to get a personalised estimate.
Comparing job offers: salary vs total package
When comparing offers, look at the base salary (before tax) and whether super is included. From 1 July 2026, the super guarantee rate is 12% on earnings up to $270,830. Many job ads state "plus super", meaning super is paid on top of your salary and does not reduce your take-home pay. If an offer says "including super", the super component is part of the advertised figure, so your take-home will be lower.
Also consider salary packaging options, which can reduce your taxable income. See our Salary packaging guide for more.
Using benchmarks to assess an offer
The Average pay page lists the ABS benchmarks. Compare your offer to the all-employees average ($82,118) or the full-time ordinary average ($108,352). If your offer is below the minimum wage ($52,255), it may not be legal. Remember that these are before-tax figures; your take-home will be less.
Fortnightly budgeting
Most Australian employees are paid fortnightly. To estimate your fortnightly take-home, divide your annual take-home by 26. For the average full-time salary above, that's about $3,198 per fortnight. Use the Take-home pay guide for more examples.
Final tips
- Always ask if the salary is "plus super" or "including super".
- Use the tax rates and Medicare thresholds to estimate your net pay.
- Remember that the Medicare levy applies to most full-time salaries.
- This estimate is not a tax assessment. For precise figures, consult the Australian Taxation Office or a tax professional.
By focusing on the amount that reaches your bank account, you can make a fair comparison between job offers and understand your true earning power.
Questions
How do I calculate my take-home pay from a job offer?
Start with the annual salary before tax. Deduct income tax using the 2026–27 resident rates: nil on the first $18,200, 15c per dollar from $18,201 to $45,000, 30c per dollar from $45,001 to $135,000, and higher rates above. Then subtract the Medicare levy (2% of taxable income, but reduced if you earn between $28,011 and $35,013). Apply the Low Income Tax Offset if eligible. The result is your estimated annual take-home pay. Divide by 26 for a fortnightly amount. Remember that super is usually paid on top of your salary and does not reduce your take-home pay.
What is the average salary in Australia?
According to the ABS Average Weekly Earnings (May 2026, seasonally adjusted), the average weekly total earnings for all employees is $1,579.20, which rounds to $82,118 per year. For full-time adult ordinary time earnings (excluding overtime and employer super), the average is $2,083.70 per week, or $108,352 per year. These are before-tax figures. Your actual take-home pay will be lower after tax and the Medicare levy.
How does the Medicare levy affect my take-home pay?
The Medicare levy is 2% of your taxable income. For the 2026–27 year, if you earn less than $28,011 as a single person, you pay no levy. Between $28,011 and $35,013, the levy is phased in at 10c per dollar over the lower threshold. Above $35,013, you pay the full 2%. This levy is deducted from your salary along with income tax, so it directly reduces the amount that reaches your bank account.