Software Engineer Salary Australia: How to Compare Job Offers Using Take-Home Pay

Software Engineer Salary Australia: Focus on Take-Home Pay

When you receive a job offer for a software engineer role in Australia, the headline number – often called the "software engineer salary australia" figure – can be misleading. What really matters is the amount that lands in your bank account after tax and the Medicare levy. This guide shows you how to compare offers using take-home pay.

Understanding the Pay Figures

According to , the median weekly earnings for full-time non-managerial software engineers is reported from the ABS Survey of Employee Earnings and Hours. However, actual salaries vary by experience, location, and company. The national minimum wage is $26.44 per hour or $1,004.90 per week (from 1 July 2026), but most software engineers earn well above that.

Tax Rates for 2026–27

The Australian Taxation Office applies these resident tax rates for 2026–27:

• $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

You also pay the Medicare levy of 2% of your taxable income, unless you are below the low-income thresholds ($28,011 for singles, with a shading rate up to $35,013). Most full-time software engineers will pay the full 2%.

Example Take-Home Calculation

Suppose your annual salary is $120,000 (excluding super). Using the 2026–27 rates:

• Tax on first $18,200: $0
• Tax on $18,201–$45,000: ($45,000 – $18,200) × 0.15 = $4,020
• Tax on $45,001–$120,000: ($120,000 – $45,000) × 0.30 = $22,500
• Total income tax: $4,020 + $22,500 = $26,520
• Medicare levy: $120,000 × 0.02 = $2,400
• Total deductions: $28,920
• Take-home pay: $120,000 – $28,920 = $91,080 per year, or about $3,503 per fortnight.

Note: This excludes the Low Income Tax Offset (LITO) which may reduce tax slightly for incomes under $66,667. For $120,000, LITO does not apply.

Superannuation: Is It Included?

Job ads often state "plus super". From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to a maximum contribution base of $270,830. If an offer says "$120,000 plus super", your total remuneration is $134,400, but the super is paid into your fund, not your bank account. When comparing offers, always check whether the salary figure includes super or is exclusive.

Using the Take-Home Pay to Compare Offers

To compare two offers, calculate the after-tax amount for each. For example:

• Offer A: $130,000 base (excl. super)
• Offer B: $125,000 base plus 12% super ($140,000 total package)

After tax and Medicare, Offer A gives about $97,080 take-home; Offer B gives about $93,480 take-home (based on $125,000 taxable). Even though Offer B has a higher total package, your bank account sees less because the super is not accessible until retirement.

Deductions and Salary Packaging

As an IT professional, you may be able to claim work-related deductions for tools, equipment, home office expenses, and self-education. The provides guidance on what you can claim. Salary packaging (e.g., for a car or additional super) can reduce your taxable income and increase take-home pay, but it must be arranged through your employer.

Key Benchmarks

• National minimum wage: $26.44/hour, $1,004.90/week
• All employees average weekly total earnings: $1,579.20 (ABS, May 2026)
• Full-time adult ordinary time earnings: $2,083.70 per week

Use these to gauge where your offer sits relative to the market.

Final Advice

Always focus on the after-tax take-home amount when evaluating a software engineer salary australia offer. Use the Take-home pay calculator on this site to run your own numbers. Remember that super is not part of your disposable income, and consider the value of non-salary benefits like flexible work or bonuses.

For more details on tax and Medicare, see Tax and Medicare. To understand salary packaging options, visit Salary packaging.

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Resident estimate only. Excludes HELP/HECS, Medicare levy surcharge, salary sacrifice, and payroll tax-table rounding. Not an assessment.