What your graduate engineer salary really means for your take-home pay

The gap between the advertised figure and what lands in your bank

When you see a graduate engineer salary advertised, it’s easy to assume that number is what you’ll take home. In reality, the figure you see is almost always your gross salary – and it may or may not include superannuation. After income tax and the Medicare levy, the amount that actually reaches your bank account each fortnight can be significantly less. This guide walks you through the typical numbers and the common mix-ups so you can plan your budget with confidence.

Typical graduate engineer salary figures

According to the Hays Salary Guide FY26/27, a graduate design engineer in building services in Sydney earns around $70,000 (excluding super). The University of Queensland’s careers guide for engineering reports an average range of $70,000 to $82,000, with a median starting salary of $75,000 from the Graduate Outcomes Survey. These figures are broadly consistent across the major salary guides, though your actual offer will depend on your discipline (civil, mechanical, electrical, etc.), the state you work in, and the sector (consulting, mining, infrastructure, etc.).

Importantly, these are base salaries – they do not include the 12% superannuation your employer must pay on top from 1 July 2026. Some job ads quote a “total package” that includes super, which can make the headline number look higher but means your base pay is lower. Always check the fine print.

From gross to take-home: tax and Medicare

Once you know your base salary, you can estimate your after-tax income using the 2026–27 tax rates. For a single person earning $75,000:

• Tax-free threshold: first $18,200 – no tax.
• Next $26,800 (up to $45,000): taxed at 15c per dollar = $4,020.
• Remaining $30,000 (from $45,001 to $75,000): taxed at 30c per dollar = $9,000.
• Total income tax: $13,020.
• Low Income Tax Offset (LITO): at $75,000 you receive $0 because the offset phases out completely above $66,667.
• Medicare levy: 2% of $75,000 = $1,500.
• Total deductions: $14,520.
• Annual take-home pay: $60,480.
• Fortnightly take-home: $60,480 ÷ 26 = approximately $2,326.

This is a simplified estimate. It does not include HELP/HECS repayments, the Medicare levy surcharge (if you don’t have appropriate private hospital cover), or salary packaging arrangements. Use the Take-home pay page for a more personalised calculation.

Superannuation: not part of your take-home

A common point of confusion is whether super is deducted from your salary. It is not. Your employer pays super on top of your base salary. For a $75,000 base, the 12% super contribution is $9,000, making your total employment cost $84,000. That $9,000 goes into your super fund – you can’t access it until retirement (subject to conditions). If a job ad says “$84,000 package”, it likely means $75,000 base plus $9,000 super. Your take-home pay is still calculated on the $75,000 base. Learn more about how super works on the Super page.

Why the mix-up matters

If you’re comparing job offers, always convert them to a common basis – preferably base salary excluding super. Then apply the tax and Medicare calculations to see what you’ll actually have to live on. The difference between a $75,000 base and an $84,000 package is $9,000 in super you can’t spend today. That’s a significant budget consideration, especially when you’re starting out.

For a full breakdown of how tax brackets and offsets affect your pay, see the Tax and Medicare guide. And if you’re negotiating your first engineering role, remember that the advertised graduate engineer salary is just the starting point – your take-home pay is what you’ll actually rely on.