How Your Fortnightly Pay Changes: Tax Brackets, Medicare Levy, and Smart Salary Contact Number

How Your Fortnightly Pay Changes

Your take-home pay is the amount that lands in your bank account after income tax and the Medicare levy are withheld. But the figure changes every fortnight because of three key factors: progressive tax brackets, the Medicare levy, and superannuation. If you use salary packaging, that can also shift your taxable income. For help setting up packaging, the smart salary contact number is 1300 476 278 – a direct line to Smart, a leading provider .

Tax Brackets for 2026–27

The Australian Tax Office (ATO) publishes updated tax tables each year. For 2026–27, the resident tax rates are:

• $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 are confirmed by the Moneysmart website . The Low Income Tax Offset (LITO) can reduce your tax by up to $700, but it phases out above $37,500. For example, on a $52,255 annual salary (the minimum wage), LITO is about $216, lowering your tax bill.

Medicare Levy

Most residents pay the Medicare levy of 2% of taxable income. However, the ATO sets low-income thresholds: if you earn $28,011 or less as a single, you pay no levy. Between $28,011 and $35,013, you pay a shade rate of 10c per $1 over the lower threshold. Above $35,013, the full 2% applies. These are the latest published single-person thresholds . For a full-time worker on the minimum wage ($52,255), the Medicare levy is $1,045.10.

Superannuation

From 1 July 2026, the super guarantee is 12% of your ordinary time earnings. If a job ad says “$70,000 plus super”, the super is paid on top and does not reduce your take-home. But if you salary sacrifice extra super, your taxable income drops, which can lower your tax and Medicare levy. The maximum contribution base for super is $270,830.

Salary Packaging and the Smart Salary Contact Number

Salary packaging (or salary sacrifice) lets you swap salary for benefits like a car, laptop, or additional super. This reduces your taxable income, so you pay less tax and Medicare levy. Smart is a major administrator of salary packaging and novated leases. If you want to explore this option, the smart salary contact number is 1300 476 278. Before entering any arrangement, consider your financial situation and seek professional advice. Conditions and fees apply.

Estimating Your Take-Home

Let’s use the national minimum wage as an example. From 1 July 2026, Fair Work sets it at $26.44 per hour and $1,004.90 per week. For a 38-hour week, 52 weeks, that’s $52,255 annually.

• Tax on $52,255: $4,020 + 30% of ($52,255 – $45,000) = $4,020 + $2,176.50 = $6,196.50
• Less LITO: $216.18 → tax = $5,980.32
• Medicare levy: 2% of $52,255 = $1,045.10
• Total deductions: $7,025.42
• Annual take-home: $45,229.58
• Fortnightly take-home: $1,739.60 (rounded)

This is an estimate only. Your actual withholding may differ due to payroll rounding, HELP/HECS debts, or the Medicare levy surcharge. Use the Take-home pay guide for a personalised calculation. If you salary package, your taxable income will be lower, so your take-home could be higher. For more on that, see Salary packaging.

Remember, the ATO’s tax tables are the official source for withholding amounts. The Tax and Medicare topic explains how offsets and the levy interact. Always check your own situation with a qualified adviser.