Managing Director Salary Guide 2026–27: What You Take Home After Tax
The average managing director salary in Australia is $154,000 per year, with a median of $146,500, based on ABS data from May 2025.
Managing Director Salary: What You Need to Know
If you're considering a role as a managing director or chief executive in Australia, understanding the managing director salary landscape is essential. This guide uses the latest public data from the Australian Bureau of Statistics and the Australian Taxation Office to show you what you can expect to earn and how much reaches your bank account after tax and the Medicare levy.
Average and Median Pay
According to the ABS Employee Earnings and Hours survey (May 2025), the average salary for chief executives and managing directors is $154,000 per year, with a median of $146,500. These figures are sourced from , which compiles ABS data. The median is a more reliable benchmark because it isn't skewed by a few very high earners.
By experience level, entry-level roles (0–2 years) pay around $100,000, mid-level (3–7 years) $154,000, and senior roles (8+ years) $215,500. State variations also apply: the highest average is in the ACT ($169,500) and the lowest in Tasmania ($135,500).
How It Compares to Benchmarks
To put the managing director salary in perspective, compare it to two key benchmarks:
- National minimum wage: $26.44 per hour, $1,004.90 per week ($52,255 annualised) – set by Fair Work from 1 July 2026.
- Full-time adult ordinary time earnings: $2,083.70 per week ($108,352 per year) – ABS Average Weekly Earnings, May 2026, seasonally adjusted.
A managing director earning the median $146,500 earns about 2.8 times the minimum wage and 35% more than the average full-time worker. This places the role firmly in the top income brackets.
Estimated Take-Home Pay After Tax and Medicare
Using the 2026–27 tax rates from the Australian Taxation Office, here's an estimate of your take-home pay on a $146,500 salary:
- Income tax: $31,020 plus 37c for each $1 over $135,000 = $35,275
- Medicare levy: 2% of $146,500 = $2,930
- Total deductions: $38,205
- Annual take-home: $108,295
- Fortnightly take-home: $4,165 (rounded)
This estimate excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll rounding. It also assumes you are a resident for tax purposes. For a more personalised calculation, use our Take-home pay tool.
Superannuation Considerations
From 1 July 2026, the super guarantee rate is 12% on earnings up to $270,830. Many managing director roles advertise a salary plus super, meaning super is paid on top of your base. If your contract says "$154,000 plus super", your employer contributes an additional $18,480 to your super fund. This does not reduce your take-home pay. If the salary is quoted as a total package including super, your taxable income is lower. Always check the wording.
Tax Offsets and Medicare Thresholds
The Low Income Tax Offset (LITO) phases out completely at $66,667, so it does not apply at managing director salary levels. The Medicare levy has a full 2% rate for incomes above $35,013 (single). The latest published thresholds are $28,011 (lower) and $35,013 (upper). For full-time salaries like a managing director's, you pay the full 2%. For more details, see Tax and Medicare.
State-by-State Variation
While national averages are useful, your actual managing director salary may vary by location. The table below shows estimated averages by state (based on national data with regional adjustments):
| State | Average Salary | vs National |
|---|---|---|
| ACT | $169,500 | +10.1% |
| WA | $166,500 | +8.1% |
| NSW | $162,000 | +5.2% |
| NT | $158,500 | +2.9% |
| VIC | $157,000 | +1.9% |
| QLD | $146,500 | -4.9% |
| SA | $141,500 | -8.1% |
| TAS | $135,500 | -12.0% |
These figures are estimates; actual offers depend on industry, company size, and your experience.
Final Thoughts
The managing director salary in Australia is well above average, but the tax and Medicare levy take a significant portion. Understanding your take-home pay and super arrangements helps you negotiate effectively. For more benchmarks, see our Benchmarks page, and for role-specific guides, visit Roles.
Questions
What is the average managing director salary in Australia?
According to the ABS Employee Earnings and Hours survey (May 2025), the average salary for chief executives and managing directors is $154,000 per year, with a median of $146,500. Entry-level positions start around $100,000, while senior roles can exceed $215,000.
How much tax and Medicare levy will I pay on a managing director salary?
For a median salary of $146,500 in 2026–27, you would pay approximately $35,275 in income tax and $2,930 in Medicare levy (2%), giving a total of $38,205. Your estimated take-home pay would be around $108,295 per year, or about $4,165 per fortnight. This excludes HELP/HECS, surcharges, and salary sacrifice.
How does a managing director salary compare to the national minimum wage and full-time ordinary earnings?
The national minimum wage is $26.44 per hour or $1,004.90 per week ($52,255 annualised). Full-time adult ordinary time earnings average $2,083.70 per week ($108,352 per year). A managing director salary of $146,500 is roughly 2.8 times the minimum wage and 35% above the full-time ordinary average.