What is the Medicare Levy and who pays it?

The Medicare Levy is a 2% charge on taxable income that funds Australia’s public health system. Most Australian residents pay it in full. Low-income earners below $26,000 pay nothing, while those between $26,000 and $32,500 pay a reduced rate as the levy phases in. The Medicare Levy Surcharge (MLS) is a separate additional charge of 1% to 1.5% that applies to higher-income earners who do not hold private hospital cover. Holding an eligible hospital cover policy exempts you from the MLS, which is why this calculator asks about private health insurance.

How does salary packaging reduce my take-home tax?

Salary packaging, also called salary sacrifice, allows you to receive part of your remuneration as non-cash benefits rather than taxable salary. Common examples include novated car leases, laptop computers, and — for employees of hospitals, charities, and councils — living expenses up to a fringe benefits tax-exempt cap. Because the packaged amount is deducted before income tax is calculated, it reduces your taxable income and therefore the tax withheld. This calculator reduces your gross salary by the packaging amount before applying the income tax brackets, giving you an estimate of the tax saving.

Australian Paycheck Calculator 2024/25 — Take-Home Pay After Tax Australia

Australian Paycheck Calculator · AUAustralian Tax

Example result based on the prefilled values.

Take-Home per Pay Period

A$2,508.00

Annual Take-Home

A$65,208.00

Employer Super

A$9,775.00

Effective Tax Rate

23.30%

HECS-HELP Repayment/yr

A$0.00

Continue your plan

Useful next calculations

Related to this calculation

Use the Australian Income Tax Calculator

Continue with the related australian tax question this result raises.

Use the Superannuation Calculator

Continue with the related superannuation & retirement question this result raises.

When to use this calculator

Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
When you want to compare employed, self-employed, or dividend-based income scenarios.
When you need a simple take-home estimate before running payroll or filing returns.
When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.

A realistic Australia planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Annual Gross Salary (A$)

A$80,000

Pay Frequency

Fortnightly (26/yr)

Employer Super Rate (%)

Salary Packaging / Year (A$)

A$80,000

After entering these figures, review take-home per pay period, annual take-home and employer super together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.

How to read your results

Take-Home per Pay Period

Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.

Annual Take-Home

Employer Super

Effective Tax Rate

Review this figure alongside gross income and the local tax rules that apply to you. It is a planning estimate, not a filing result or a recommendation to make a tax decision.

HECS-HELP Repayment/yr

Method & assumptionsAuthoritative sources

This calculator computes Australian resident take-home pay by applying the 2024/25 federal income tax brackets, the Low Income Tax Offset (up to $700), the 2% Medicare Levy (with phase-in for lower incomes), the Medicare Levy Surcharge for those without private hospital cover, and HECS-HELP compulsory repayment rates. Salary packaging is treated as a pre-tax reduction to gross income before any brackets are applied, reflecting the standard ATO treatment of salary sacrifice arrangements. Employer superannuation at the nominated SG rate is calculated separately on gross salary and displayed as an additional component of total remuneration rather than a deduction from take-home pay.

This estimate is for general planning only. It does not include reportable fringe benefits, investment income, rental income, or state-based payroll taxes. HECS-HELP repayment is an approximation based on annual income and may differ from the exact per-pay withholding amount used by your employer. Confirm your exact withholding with your payroll team or use the ATO’s official tax withheld calculator for employer-facing figures.

Common mistakes

!Using an assumption that is not supported by a current local quote, bill, statement or official source.
!Treating a generic estimate as a lender, provider, payroll or tax authority decision.
!Mixing monthly and annual inputs without converting them consistently.
!Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
!Testing only one scenario instead of checking how a cautious assumption changes the result.

What to do next

Run a second scenario with a cautious assumption so you can see the downside clearly.
Compare the result with the related calculators below before making a decision.
Check current local rules, eligibility and provider terms before applying or committing money.
Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.

Frequently asked

Australian income tax is calculated using a progressive bracket system. For the 2024/25 year, the tax-free threshold is $18,200. Income from $18,201 to $45,000 is taxed at 19%, from $45,001 to $135,000 at 32.5%, from $135,001 to $190,000 at 37%, and above $190,000 at 45%. Most resident taxpayers also receive the Low Income Tax Offset (LITO), which reduces the tax payable by up to $700 for incomes below $37,500 and phases out gradually. This calculator applies all of these components to your taxable income automatically.

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