How to compare job offers using after-tax salary: average UK salary vs Australia

Why after-tax salary matters when comparing job offers

When you receive a job offer, the headline salary can be misleading. What actually lands in your bank account each fortnight is your take-home pay after income tax and the Medicare levy. This is the number that pays your rent, mortgage, and bills. Comparing offers using gross salary alone ignores the different tax treatments that can make a lower gross salary result in higher net pay.

For example, a role paying $100,000 plus super gives you a different take-home than one paying $95,000 including super. The first has super added on top, the second has super deducted from the advertised figure. Always check whether the salary is ‘plus super’ or ‘inclusive of super’.

The average UK salary as a benchmark

You might see the average UK salary quoted in international comparisons. According to the UK Office for National Statistics, median weekly earnings for full-time employees were £811.20 in April 2026. That is around £42,182 per year. In Australia, the ABS reports median weekly earnings for all employees of $1,436.00 (January 2026), which is about $74,672 annually. But these are gross figures. After tax, the difference narrows because Australia’s tax system has higher thresholds before top rates kick in, while the UK has National Insurance contributions. When comparing a job offer from the UK to one in Australia, you need to convert to a common currency and apply each country’s tax rules. Our Clearance tool can help you estimate net pay for different locations.

How to estimate your take-home pay

Start with the annual salary. For 2026–27, the tax rates are:

• $0 – $18,200: nil
• $18,201 – $45,000: 15c for each $1 over $18,200
• $45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000
• $135,001 – $190,000: $31,020 plus 37c for each $1 over $135,000
• $190,001+: $51,370 plus 45c for each $1 over $190,000

Then apply the Low Income Tax Offset (LITO) if your taxable income is under $66,667. LITO is $700 for incomes up to $37,500, then phases out. It can only reduce your tax to zero.

Next, add the Medicare levy. For singles, the latest published thresholds are $28,011 and $35,013. If your taxable income is above $35,013, you pay the full 2%. Between $28,011 and $35,013, you pay 10c per dollar over $28,011. Below $28,011, no levy.

Finally, subtract any salary sacrifice arrangements or HELP/HECS repayments if applicable. Our Salary packaging guide explains how pre-tax deductions affect your take-home.

Example: $80,000 salary plus super

• Taxable income: $80,000
• Tax on first $45,000: $4,020
• Tax on remaining $35,000 at 30c: $10,500
• Total tax before offsets: $14,520
• LITO: $325 (since $80,000 is above $45,000, LITO is $325 minus 1.5c per dollar over $45,000 = $325 – $525 = $0, so no LITO)
• Medicare levy: $80,000 × 2% = $1,600
• Total deductions: $14,520 + $1,600 = $16,120
• Take-home annual: $63,880
• Fortnightly: $2,456.92

If the salary were $80,000 including super, you’d first deduct 12% super ($9,600) to get $70,400 taxable, then calculate tax on that.

Comparing offers with different structures

When you have two offers, convert each to a common basis: annual take-home pay. Use our Take-home pay calculator to enter the gross salary, super arrangement, and any salary packaging. Then compare the net figures.

Also consider non-salary benefits: extra super contributions, car allowance, or performance bonuses. Bonuses are taxed at your marginal rate, so they add less to your pocket than you might expect.

The role of superannuation

From 1 July 2026, the super guarantee rate is 12% on ordinary time earnings, up to a maximum contribution base of $270,830. Super is not part of your take-home pay; it’s locked away until retirement. When comparing offers, treat super as a future benefit, not current cash. If one employer offers 12% super and another offers 15%, the difference adds up over time, but it doesn’t affect your fortnightly budget.

Using benchmarks to gauge an offer

The ABS provides several benchmarks:

• National minimum wage: $26.44 per hour, $1,004.90 per week (from 1 July 2026). This is the legal floor.
• All employees average weekly total earnings: $1,579.20 (May 2026), which includes part-time workers.
• Full-time adult ordinary time earnings: $2,083.70 per week (May 2026). This is the typical full-time salary before overtime.

If your offer is below the full-time average, you may be underpaid for your industry. Check our Benchmarks page for industry-specific data.

When the average UK salary is relevant

If you’re considering a move to the UK or a remote role for a UK employer, the average UK salary gives a starting point. But remember that the UK tax system includes National Insurance (around 8% on earnings above £12,570) and different personal allowances. The median full-time UK salary of £811 per week (April 2026) converts to roughly A$1,550 at current exchange rates, but after tax and NI, the take-home is lower than a comparable Australian salary. Use our Clearance tool to model both scenarios.

Final tips

• Always ask: “Is this salary plus super or inclusive?”
• Check if the role offers salary packaging (e.g., novated lease, public benefit institution concessions).
• Remember that HELP/HECS repayments are additional deductions not included in these estimates.
• The Medicare levy surcharge applies if you don’t have appropriate private hospital cover and your income exceeds $93,000 (singles). That’s an extra 1% to 1.5%.

By focusing on take-home pay, you make a fair comparison between offers, whether they’re in Australia or overseas. The average UK salary is a useful reference, but your personal net income is what matters.

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This guide uses 2026–27 tax rates and the latest ABS and ONS data. It is an estimate only and not a tax assessment. Consult a tax professional for your individual situation.