How to Compare Job Offers Using Your Base Salary and Take-Home Pay
Pay varies by role, industry, and location; the national minimum wage is $26.44 per hour or $1,004.90 per week, but most jobs pay above this.
Understanding Your Base Salary
When you receive a job offer in Australia, the first figure you see is usually your base salary. This is the annual amount before tax, the Medicare levy, and any other deductions. It is the foundation for calculating what actually lands in your bank account each fortnight.
Fair Work sets the national minimum wage at $26.44 per hour or $1,004.90 per week for employees not covered by an award or registered agreement . Most professional roles pay well above this, but the principle is the same: your base salary determines your gross income.
From Base Salary to Take-Home Pay
Your take-home pay is your base salary minus:
- Income tax – calculated using the 2026–27 resident tax rates published by the Australian Taxation Office .
- Medicare levy – 2% of your taxable income, with low-income exemptions.
2026–27 Tax Rates (Resident)
| Taxable income | Tax on this income |
|---|---|
| $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 and over | $51,370 plus 45c for each $1 over $190,000 |
These rates do not include the Medicare levy of 2%.
Medicare Levy Thresholds
The latest published single-person thresholds are $28,011 (lower) and $35,013 (upper). If your taxable income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay 10c per dollar over the lower threshold. Above $35,013, you pay the full 2% on your entire taxable income. Most full-time salaries exceed $35,013, so you will pay the full 2%.
Example Calculation
Suppose your base salary is $80,000. Your annual take-home pay is estimated as:
- Tax: $4,020 + 30% × ($80,000 – $45,000) = $4,020 + $10,500 = $14,520
- Medicare levy: 2% × $80,000 = $1,600
- Total deductions: $14,520 + $1,600 = $16,120
- Take-home: $80,000 – $16,120 = $63,880 per year
- Fortnightly: $63,880 ÷ 26 = $2,456.92
This is the amount that reaches your bank account before any other deductions like HELP/HECS or salary sacrifice.
Why Super Matters (But Isn't in Your Bank Account)
From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. Your employer pays this on top of your base salary. When a job ad says "$80,000 plus super", your base salary is $80,000 and your employer contributes an extra $9,600 to your super fund. Your take-home pay is calculated from the $80,000, not the $89,600 total package.
Always compare base salaries first. A job with a higher base salary gives you more take-home pay, even if the total package looks similar.
Using Our Tools
You can use our Take-home pay calculator to estimate your after-tax income. For a quick comparison of different offers, check the Clearance tool which factors in tax, Medicare, and the low-income tax offset (LITO).
LITO for 2026–27: Maximum $700 at taxable income up to $37,500, then reduces by 5c per dollar until $45,000, then $325 minus 1.5c per dollar until $66,667. It can only reduce your tax to zero.
Comparing Offers: What to Look For
When you have two job offers, follow these steps:
- Compare base salaries – This is the number that drives your take-home pay.
- Check super – Ensure both employers pay at least 12% super. Some pay more.
- Consider other benefits – Salary packaging, bonuses, and allowances can affect your tax position.
- Use the same tax assumptions – Our Tax and Medicare guide explains how to apply the correct rates.
Remember that the figures above are estimates. Your actual tax may vary due to rounding in PAYG withholding tables, HELP/HECS repayments, or the Medicare levy surcharge if you have private health insurance status.
Final Thoughts
Your base salary is the starting point for understanding your financial position. By focusing on the amount that reaches your bank account after tax and Medicare, you can make a fair comparison between job offers. Use our Benchmarks page to see average earnings for full-time adults (currently $2,083.70 per week or $108,352 annually, according to ABS Average Weekly Earnings, May 2026).
For more details, explore our guides on Salary packaging and Super.
Questions
What is the difference between base salary and total package?
Your base salary is the fixed annual amount before tax and super. A total package includes base salary plus employer superannuation contributions (currently 12% from 1 July 2026) and may also include bonuses or benefits. When comparing offers, always look at the base salary first because that is the amount used to calculate your take-home pay.
How do I calculate my take-home pay from my base salary?
Start with your base salary. Deduct income tax using the 2026–27 resident tax rates (e.g., nil on the first $18,200, then 15c per dollar up to $45,000, etc.). Then subtract the Medicare levy of 2% (but note the low-income thresholds: if your taxable income is below $28,011 you pay no Medicare levy; between $28,011 and $35,013 you pay at a reduced rate of 10c per dollar over the lower threshold). The result is your annual take-home pay. Divide by 26 for a fortnightly amount.
Why is super not deducted from my take-home pay?
Superannuation is paid by your employer on top of your base salary (unless you salary sacrifice). It goes into your super fund, not your bank account. When a job ad says '$80,000 plus super', your base salary is $80,000 and your employer adds $9,600 (12%) to super. Your take-home pay is calculated from the $80,000 base, not the total package.