How to Compare a Job Offer Using Take-Home Pay: Australia vs. the Average Salary in China

Why Take-Home Pay Matters When Comparing Offers

When you receive a job offer, the headline salary can be misleading. What matters is the amount that reaches your bank account after tax, the Medicare levy, and any other deductions. This is especially important when comparing an Australian offer with one from overseas, such as China. The Take-home pay you actually keep determines your lifestyle and savings.

Australian Benchmarks from the ABS

The Australian Bureau of Statistics publishes the latest Average Weekly Earnings. For May 2026, the seasonally adjusted figures show:

• Full-time adult ordinary time earnings: $2,083.70 per week (annualised to $108,352)
• All employees average weekly total earnings: $1,579.20 per week (annualised to $82,118)

These are before tax and super. The national minimum wage, set by Fair Work, is $26.44 per hour and $1,004.90 per week from 1 July 2026.

The Average Salary in China

When you research the average salary in China, you'll see figures from the National Bureau of Statistics. For 2025 (published in 2026), the average annual pre-tax wage for urban non-private units is RMB 129,441 (about RMB 10,800 per month). For urban private units, it is RMB 71,590 (about RMB 6,000 per month). These are broad averages and do not reflect specific roles, cities, or seniority.

Comparing Take-Home Pay: Australia vs. China

To compare offers, you need to estimate the net amount after each country's taxes and contributions.

In Australia

For the 2026–27 tax year, a resident earning $100,000 pays:

• Tax: $24,997 (using the tax brackets)
• Medicare levy: 2% of taxable income (full rate, as $100,000 exceeds the $35,013 upper threshold)
• Low Income Tax Offset (LITO) may apply but phases out above $66,667.

Your take-home pay would be approximately $73,003 per year (before any HELP/HECS or salary sacrifice). The latest single-person Medicare thresholds are $28,011 and $35,013; full-time salaries pay the full 2%.

In China (Shanghai example)

Using the same gross salary of RMB 100,000 (converted for illustration), a tax comparison tool shows you would keep about $6,047 more in China than in Australia, after income tax and social insurance. However, this is a simplified comparison. The official average salary in China is pre-tax, and employer social insurance contributions add to total cost.

Key Differences to Consider

• Medicare levy: In Australia, you pay 2% of taxable income. In China, there is no Medicare levy, but you contribute to social insurance (medical, pension, etc.).
• Superannuation: Australian employers pay 12% super from 1 July 2026. This is not deducted from your salary but is an additional benefit. In China, employer social insurance contributions are also on top of salary.
• Tax rates: Australia has progressive rates up to 45%. China also has progressive rates, but the effective rate for a mid-range salary can be lower.

How to Use This Information

When you see a job offer, always convert the salary to take-home pay. Use the Tax and Medicare guide to calculate your Australian net income. For China, use a reliable tax calculator or consult an expat tax specialist. The average salary in China is a starting point, but your actual offer will depend on the city, industry, and your experience.

Final Advice

Don't be swayed by a high gross salary alone. The amount that reaches your bank account after all deductions is what funds your life. Whether you stay in Australia or move to China, understanding take-home pay helps you make an informed decision.