Does gross salary include super? How to compare job offers using take-home pay

Does gross salary include super? Understanding job offers

When you see a salary in a job advertisement, the first question is often: does gross salary include super? The short answer is no. In Australia, most advertised salaries are quoted as 'base salary' or 'gross salary' excluding the employer's super guarantee contribution. From 1 July 2026, employers must pay super at 12% of your ordinary time earnings on top of your agreed salary, as confirmed by the Australian Taxation Office and Fair Work.

This means if you are offered $80,000 'plus super', your total employment cost is $80,000 + $9,600 super = $89,600. The $80,000 is what your employer uses to calculate tax withholding. Super goes directly into your nominated fund and does not appear in your bank account as take-home pay.

How to calculate the amount that reaches your bank account

Your take-home pay is your gross salary minus:

• Income tax – calculated using the ATO resident tax rates for 2026–27.
• Medicare levy – generally 2% of your taxable income.
• Low Income Tax Offset (LITO) – reduces tax for incomes up to $66,667.

You can use the ATO's Tax withheld calculator to estimate your net pay, but the following example shows the method.

Example: National minimum wage

The national minimum wage (set by Fair Work) is $26.44 per hour and $1,004.90 per week. For a full-time worker (38 hours/week, 52 weeks), that equals $52,255 per year.

Using the 2026–27 tax rates:

• Tax on $52,255: $4,020 + 30c per $1 over $45,000 = $4,020 + $2,176.50 = $6,196.50
• LITO: $325 – 1.5c per $1 over $45,000 = $325 – $108.83 = $216.17 (rounded to $216)
• Tax after LITO: $6,196.50 – $216 = $5,980.50
• Medicare levy (2%): $1,045.10
• Total deductions: $7,025.60
• Annual take-home pay: $45,229.40 (about $1,739.59 per fortnight)

This is the amount that reaches your bank account after tax and Medicare. Super (12% = $6,270.60) is paid into your super fund, not to you.

Comparing job offers: salary plus super vs total package

When comparing two offers, always convert them to a common basis. Use Take-home pay as your real comparison, not the headline number. For example:

• Offer A: $90,000 plus super (total cost $100,800)
• Offer B: $95,000 including super (base salary ~$84,821)

Offer A gives you a higher base salary even though the total package is similar. Use the Tax and Medicare rates to estimate your net income from each base salary.

Remember that super is not accessible until retirement, so a higher base salary generally means more cash in hand now. However, salary sacrifice arrangements (e.g., for a car or additional super) can change your taxable income – see Salary packaging for details.

Key thresholds to know

• Tax-free threshold: First $18,200 of income is tax-free for residents.
• Medicare levy thresholds: Single earners below $28,011 pay no levy; between $28,011 and $35,013 pay a reduced rate (10c per $1 over the lower threshold). These are the latest published single-person thresholds.
• Super guarantee: 12% of ordinary time earnings, paid by your employer each payday from 1 July 2026.

For a full breakdown of current rates, visit Super and Benchmarks.

Final tip

Always ask the employer: "Is this salary plus super or inclusive of super?" Then use the ATO tax tables or our Clearance tool to estimate your take-home pay. The amount that lands in your bank account is what matters for your budget.