Your aged care salary: what you actually take home after tax

Understanding your aged care salary after tax

When you're looking at an aged care salary, the first thing to understand is the minimum pay rates set by the Aged Care Award. Fair Work Ombudsman publishes the award rates, which vary by classification and experience. For example, a full-time Aged care employee – general – Level 1 earns a minimum of $1,055.40 per week, while a Level 7 earns $1,278.60 per week. These rates are higher than the national minimum wage of $26.44 per hour ($1,004.90 per week).

But the number on your pay slip is not what lands in your bank account. You need to account for income tax and the Medicare levy. This guide shows you how to estimate your take-home pay.

How tax works on your aged care salary

Australia uses a progressive tax system. For the 2026–27 tax year, the rates for residents are:

• $0 – $18,200: Nil
• $18,201 – $45,000: 15c for each dollar over $18,200
• $45,001 – $135,000: $4,020 plus 30c for each dollar over $45,000
• $135,001 – $190,000: $31,020 plus 37c for each dollar over $135,000
• Over $190,000: $51,370 plus 45c for each dollar over $190,000

You may also be eligible for the Low Income Tax Offset (LITO). For 2026–27, the maximum LITO is $700 for incomes up to $37,500, then it phases out. At $54,880 (a Level 1 annual salary), the LITO is about $177, reducing your tax bill.

The Medicare levy

The Medicare levy is 2% of your taxable income. The latest single-person thresholds are $28,011 and $35,013. 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%. Most full-time aged care workers will pay the full levy.

Example: take-home pay for a Level 1 aged care worker

Let's calculate for a full-time Aged care employee – general – Level 1 earning $1,055.40 per week. Annual salary: $1,055.40 × 52 = $54,880.80.

• Income tax: $4,020 + 30% × ($54,880.80 – $45,000) = $4,020 + $2,964.24 = $6,984.24
• Less LITO: $6,984.24 – $176.79 = $6,807.45
• Medicare levy: 2% × $54,880.80 = $1,097.62
• Total deductions: $6,807.45 + $1,097.62 = $7,905.07
• Annual take-home: $54,880.80 – $7,905.07 = $46,975.73
• Weekly take-home: $46,975.73 ÷ 52 = $903.38
• Fortnightly take-home: $903.38 × 2 = $1,806.76

This is an estimate. Your actual tax may vary if you have HELP/HECS debt, salary sacrifice, or other adjustments. The Take-home pay tool on this site can help you calculate your specific situation.

Higher classifications and direct care roles

The Aged Care Award also covers direct care employees (such as personal care workers) with higher minimum rates. For example, a Direct care – Level 2 – Direct Carer earns $1,307.80 per week. At that level, annual salary is $68,005.60. Tax would be $4,020 + 30% × ($68,005.60 – $45,000) = $4,020 + $6,901.68 = $10,921.68, less LITO of about $325 (reduced), Medicare levy $1,360.11, total deductions $11,956.79, take-home $56,048.81 per year ($1,077.86 per week).

Superannuation is extra

Remember, super is paid by your employer on top of your salary. From 1 July 2026, the super guarantee rate is 12%. It does not reduce your take-home pay. When you see an aged care salary advertised, it is usually the base rate excluding super. Your employer must also contribute super to a fund of your choice.

Using the award rates

Fair Work Ombudsman provides the official pay guide for the Aged Care Award. The rates in this article are from that guide. You can also use the Tax and Medicare page to understand how your salary is taxed.

Summary

Your aged care salary after tax depends on your classification, hours, and personal circumstances. Use the award rates as a starting point, then apply the tax brackets and Medicare levy. For a typical Level 1 full-time worker, take-home is about $903 per week. Higher classifications yield more. Always check your pay against the award to ensure you're receiving the correct minimum rate.