Gross Pay vs Net Pay in Australia
What's deducted from your salary before it hits the bank — and how to estimate your real take-home pay.
You sign an offer letter for $90,000 and look at your first payslip expecting roughly $7,500 a month. The bank shows $5,800. Where did the rest go? The gap between gross pay (the headline salary) and net pay (what lands in your account) is the combined effect of income tax, the Medicare levy, study loan repayments, and a few other line items. None of them are negotiable, and all of them apply automatically to anyone on PAYG withholding in Australia.
Skip the maths: drop your salary into the Pay Calculator Australia and the calculator will return net pay, income tax, Medicare levy, HECS/HELP and super in one screen using the current ATO 2024–25 brackets.
What gross pay means
Gross pay is your total earnings before any deductions. It's the figure quoted on your offer letter, in the award rate, or in a pay rise. For a permanent role it usually includes annual leave (which is paid time off), but it does not include the Super Guarantee — super is calculated on top of gross.
What's deducted between gross and net
From a typical Australian PAYG employee on a permanent salary, your employer withholds:
- PAYG income tax — calculated against the ATO's current bracket structure. The first $18,200 is tax-free; income above that is taxed in five bands rising to 45%.
- Medicare levy — 2% of taxable income, with low-income reductions for earners below a threshold.
- HECS/HELP repayments — if you have a study loan, your employer withholds an extra percentage based on your income.
- Voluntary salary sacrifice — extra super contributions, novated lease repayments, or laptop salary packaging if you've opted in.
2024–25 resident tax brackets
| Taxable income | Rate on this band |
|---|---|
| $0 – $18,200 | 0% |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| Over $190,000 | 45% |
A worked example: $90,000 gross
- Income tax (resident, 2024–25): ≈ $19,288
- Medicare levy (2%): ≈ $1,800
- Net annual take-home: ≈ $68,912
- Net monthly take-home: ≈ $5,743
- Employer Super Guarantee (on top): ≈ $10,350
If you also have a HECS/HELP debt, expect another ~$5,400 deducted at the 6% repayment rate for that band, dropping net to around $63,500. Run your own number through the Pay Calculator Australia for an exact estimate with your settings.
"Including super" vs "Plus super"
Read your offer letter carefully. Plus super means your gross is the headline figure and super is paid on top — better for you. Including super (sometimes called "package") means the headline includes employer super contributions, so your gross-for-tax is the headline divided by 1.115 (or 1.12 once the Super Guarantee tops out at 12%). The Pay Calculator has a toggle for both.
What gross-vs-net is not
Gross and net pay are PAYG concepts. They don't apply to ABN sole traders (who set aside their own tax and BAS), they don't include the Medicare Levy Surcharge for higher earners without private hospital cover, and they don't account for end-of-year items like work-related deductions or franking credits. For final figures, use the ATO's official tax-withheld calculator or speak with a registered tax agent.
Last updated: May 2026. This article is a general guide only and is not financial, tax, legal, or professional advice.
Run your salary through the calculator
For an instant estimate of your gross-to-net split, use the Pay Calculator Australia. To project a pay rise or a bonus across the year, the Percentage Calculator handles "what is X% of Y" in one click.