What is the average annual salary in Australia and how much do you take home?

Understanding your take-home pay

When you look at a salary figure, what actually lands in your bank account is less than the advertised amount. Income tax and the Medicare levy are deducted by your employer through the PAYG system. This guide explains how those deductions work and shows you what typical salaries translate to after tax.

How income tax works in 2026–27

Australia uses a progressive tax system. For residents, the first $18,200 you earn is tax-free. Then you pay:

• 15c for every dollar from $18,201 to $45,000
• 30c for every dollar from $45,001 to $135,000
• 37c for every dollar from $135,001 to $190,000
• 45c for every dollar over $190,000

These rates are set by the Australian Taxation Office. The Low Income Tax Offset (LITO) can reduce your tax bill. You get a maximum of $700 if your taxable income is $37,500 or less. The offset phases out gradually until it disappears at $66,667.

Medicare levy and LITO

The Medicare levy is an additional 2% of your taxable income. If you earn less than $28,011 as a single person, you pay nothing. Between $28,011 and $35,013 you pay 10c per dollar over the lower threshold. Above $35,013 you pay the full 2%. These thresholds are the latest published single-person figures.

LITO can only reduce your tax to zero – it cannot give you a refund. For example, if your tax before LITO is $300, you get the full $300 offset. If your tax is $800, you get $700 and pay $100.

Take-home pay examples

Let's look at three key benchmarks from Fair Work and the ABS. These are before tax and Medicare.

National minimum wage

The minimum wage is $26.44 an hour, $1,004.90 a week, or $52,255 a year. On that income:

• Income tax: about $6,197
• Medicare levy: about $1,045
• LITO: about $216
• Total deductions: about $7,026
• Take-home pay: about $45,229

All employees average weekly total earnings

The ABS reports that the average weekly total earnings for all employees (including part-time) is $1,579.20, or $82,118 a year. On that income:

• Income tax: about $15,155
• Medicare levy: about $1,642
• LITO: $0 (income above $66,667)
• Total deductions: about $16,797
• Take-home pay: about $65,320

Full-time adult ordinary time earnings

For full-time workers (excluding overtime and employer super), the average is $2,083.70 a week, or $108,352 a year. On that income:

• Income tax: about $23,026
• Medicare levy: about $2,167
• LITO: $0
• Total deductions: about $25,193
• Take-home pay: about $83,159

These are estimates only. Your actual take-home may differ if you have HELP/HECS debt, salary sacrifice, or the Medicare levy surcharge.

Superannuation is separate

From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. Most job advertisements show a salary 'plus super', meaning super is paid on top. In that case, super does not reduce your take-home pay. If an ad says 'including super', the super amount is deducted from the quoted figure before you receive the rest.

Where your salary sits

The average annual salary in Australia for all employees is $82,118, but that includes part-time workers. The full-time ordinary time average is $108,352. Compare these to the minimum wage of $52,255. Your take-home pay as a percentage of gross salary decreases as you earn more because of the progressive tax system. For more details, see our Take-home pay guide and Tax and Medicare page.

Final thoughts

Knowing your after-tax income helps you budget and plan. Use the tax brackets and Medicare thresholds to estimate your own take-home. Remember that super is not deducted from your salary if it's advertised as plus super. For a personalised calculation, try our Clearance tool.