Compare Job Offers Using Your Salary Expectations and Take-Home Pay

How to Compare Job Offers Using Your Salary Expectations

When you receive a job offer, the headline figure is the gross salary. But what actually lands in your bank account each fortnight is your take-home pay after tax and the Medicare levy. Understanding this difference is key to setting realistic salary expectations and comparing offers fairly.

Start with the official benchmarks

The Australian Taxation Office publishes the 2026-27 resident tax rates, which the Australian Taxation Office shows as: nil on the first $18,200, then 15c per dollar up to $45,000, 30c per dollar up to $135,000, 37c per dollar up to $190,000, and 45c above that. These rates do not include the Medicare levy of 2%.

Fair Work sets the national minimum wage at $26.44 per hour or $1,004.90 per week. That works out to about $52,255 a year before tax. Most employees are covered by awards or enterprise agreements that pay more, but this is the legal floor.

The Australian Bureau of Statistics reports that full-time adult ordinary time earnings average $2,083.70 per week, or about $108,352 annually. Use these Benchmarks to see where an offer sits relative to the market.

Calculate your take-home pay

To estimate your take-home, apply the tax rates to your gross salary. For example, on the minimum wage of $52,255:

• Tax on first $18,200: $0
• Tax on $18,201 to $45,000 ($26,800 at 15c): $4,020
• Tax on $45,001 to $52,255 ($7,255 at 30c): $2,176.50
• Total gross tax: $6,196.50
• Less Low Income Tax Offset (LITO): maximum $700, but reduces by 1.5c per dollar over $45,000. At $52,255, LITO is about $216, so net tax is $5,980.50
• Medicare levy: 2% of $52,255 = $1,045.10 (full rate applies above $35,013)
• Total deductions: $7,025.60
• Annual take-home: $45,229.40, or about $869.80 per week, $1,739.60 per fortnight.

This is a simplified illustration. The ATO’s tax tables and calculators handle exact rounding. For a detailed guide, see Take-home pay.

Factor in the Medicare levy thresholds

The latest published single-person Medicare thresholds are $28,011 and $35,013. 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, the full 2% applies. Since most full-time salaries exceed $35,013, you will likely pay the full levy.

Superannuation is separate

Employer superannuation contributions are 12% of your ordinary time earnings (from 1 July 2026) and are paid on top of your salary, not deducted from it. When comparing offers, check whether the advertised figure is 'plus super' or 'including super'. Your take-home pay is based on the base salary, not the super-inclusive amount. Learn more about Super.

Use your salary expectations to negotiate

Knowing your after-tax income helps you evaluate whether an offer meets your financial needs. For instance, if you need $1,500 per week after tax, you can work backwards to find the gross salary required. Use the Clearance tool to run scenarios. Remember that salary packaging, HELP/HECS repayments, and the Medicare levy surcharge can further affect your net pay, but these are beyond the basic calculation.

Summary

When comparing job offers, always convert gross salaries to estimated take-home pay using the current tax rates and Medicare levy. The national minimum wage and average earnings provide context for your salary expectations. Focus on the amount that reaches your account each fortnight, not just the annual figure.