How gross pay becomes take-home pay in Australia
Your gross pay is the starting point. Tax, Medicare and any HELP repayment come out before it reaches your bank.
Gross pay is what you earn before anything is taken out. Your employer withholds tax from each payment and sends it to the ATO on your behalf. Super is paid on top by your employer and does not come out of your take-home pay, unless your contract is a package that includes super.
What comes out of gross pay
| Payslip line | What it is |
|---|---|
| PAYG withholding | Income tax taken out in advance, using the ATO tax tables |
| Medicare levy | 2% of taxable income for most residents, usually part of the same withholding |
| HELP repayment | Extra withholding if you have a study or training loan and your income is above the threshold |
| Super | Paid by your employer into your fund on top of your pay, 12% from 1 July 2025 |
Worked example: $3,500 a fortnight, 2026-27
$3,500 × 26 = $91,000 a year.
$4,020 on the first $45,000 slice, then 30% of the $46,000 above it ($13,800), which is $17,820.
2% of $91,000 = $1,820.
$91,000 − $17,820 − $1,820 = $71,360 a year, or about $2,744.62 a fortnight.
Why your tax status matters
The same $91,000 leaves a resident with about $71,360, a working holiday maker with about $70,450 (15% up to $45,000), and a foreign resident with about $63,700 (30% from the first dollar, and no Medicare levy). The working holiday maker and foreign resident figures use the ATO's 2025-26 tables, which were the latest published.
✨ Key Takeaways
- Gross pay is before tax. Net pay is what you receive.
- Super is paid on top and is not part of take-home pay, unless you have a package.
- Your tax status changes the rates.
- The ATO tables are the final word, so check them for the current year.
Open the gross to net pay calculator →