Software engineer salary Melbourne: what lands in your bank after tax

What a software engineer salary Melbourne really means for your wallet

If you are looking at job ads for a software engineer salary Melbourne, you will see figures like $128,000 from SEEK or $121,250 from Glassdoor. But the number on the ad is not what lands in your bank account. This guide explains the difference between gross pay, super, tax, and the Medicare levy so you can estimate your actual take-home pay.

What the data says

According to SEEK, the average salary for a Software Engineer in Melbourne across the Information & Communication Technology industry is $128,060, based on employer-disclosed ranges in job ads. Glassdoor reports a typical total pay of $121,250 per year for a Software Development Engineer in Melbourne, with a base pay range of $94,000 to $156,000. These figures are gross – they do not account for tax or the Medicare levy.

Jobs and Skills Australia provides broader context: software engineers have a median age of 37, 92% work full-time, and the median weekly earnings are not published for this occupation. The ABS Survey of Employee Earnings and Hours (May 2025) is the source for that data.

From gross to take-home

Your take-home pay is what remains after the Australian Taxation Office deducts income tax and the 2% Medicare levy. For the 2026–27 tax year, the rates are:

• Nil on the first $18,200
• 15c per dollar from $18,201 to $45,000
• 30c per dollar from $45,001 to $135,000
• 37c per dollar from $135,001 to $190,000
• 45c per dollar above $190,000

The Medicare levy applies at 2% of your taxable income. If your income is below $28,011 (single), you pay no Medicare levy. Between $28,011 and $35,013 you pay a reduced rate. Above $35,013 the full 2% applies. Most full-time software engineers will be well above that threshold.

Superannuation is separate. 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 a job ad says "$130,000 plus super", your employer adds 12% on top, so your total package is $145,600. But your take-home pay is calculated on the $130,000 salary, not the package.

Example: estimating your take-home

Take a typical software engineer salary Melbourne of $121,250 (Glassdoor's average total pay). Assuming this is your gross salary (excluding super), your estimated tax and Medicare are:

• Income tax: $4,020 + 30% × ($121,250 − $45,000) = $4,020 + $22,875 = $26,895
• Medicare levy: 2% × $121,250 = $2,425
• Total deductions: $29,320
• Take-home pay: $121,250 − $29,320 = $91,930 per year, or about $3,536 per fortnight

If your salary is $128,060 (SEEK's ICT average), the calculation changes:

• Income tax: $4,020 + 30% × ($128,060 − $45,000) = $4,020 + $24,918 = $28,938
• Medicare levy: 2% × $128,060 = $2,561
• Total deductions: $31,499
• Take-home: $96,561 per year, or about $3,714 per fortnight

These are estimates. They exclude HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll rounding. Use our Take-home pay calculator for a personalised figure.

What about the minimum wage?

For comparison, the national minimum wage from 1 July 2026 is $26.44 per hour and $1,004.90 per week. A software engineer salary Melbourne is well above that, but the same principles apply: tax and Medicare reduce the gross amount. See our Minimum wage page for details.

Key takeaways

• The salary quoted in job ads is gross – your take-home will be about 75–80% of that after tax and Medicare.
• Super is not deducted from your pay if the ad says "plus super". It is an additional contribution from your employer.
• The Medicare levy is a flat 2% for most full-time workers, but check the thresholds if your income is low.
• Always clarify whether a figure is base salary, total package, or total remuneration.

For more on how tax and Medicare work, visit Tax and Medicare. To understand super contributions, see Super.