How the TSMIT salary affects your after-tax pay in Australia

Understanding your take-home pay

When you see a salary figure, what actually lands in your bank account is less than the advertised amount. Income tax and the Medicare levy are deducted by your employer under the PAYG system. For Australian residents in 2026–27, the tax rates are set by the Australian Taxation Office and the Medicare levy is 2% of your taxable income (with lower thresholds for singles earning under $35,013).

Your take-home pay also depends on whether the salary is quoted as 'inclusive of super' or 'plus super'. If it's plus super, the employer adds 12% on top and that money goes to your super fund, not your bank. If it's inclusive, your base salary is lower because super is carved out.

The TSMIT salary and what it means for your after-tax income

The tsmit salary – the Temporary Skilled Migration Income Threshold – is a key benchmark for employer-sponsored visas. For the Core Skills stream, the threshold is $79,423 per year, as confirmed by . While this figure is designed for sponsored workers, it's a useful example to show how tax and Medicare reduce a typical professional salary.

Step-by-step: $79,423 take-home calculation

Using the 2026–27 resident tax rates:

• Tax on $79,423: $4,020 plus 30c for each $1 over $45,000 = $4,020 + $10,327 = $14,347
• The Low Income Tax Offset (LITO) phases out above $45,000 and does not apply at this income.
• Medicare levy: 2% of $79,423 = $1,588
• Total deductions: $14,347 + $1,588 = $15,935
• Estimated annual take-home: $79,423 – $15,935 = $63,488

That works out to about $2,442 per fortnight or $1,221 per week (before any salary sacrifice or HELP repayments).

How this compares to other benchmarks

• The national minimum wage is $26.44 per hour or $1,004.90 per week, as set by Fair Work. That's about $52,255 a year – well below the TSMIT.
• The average full-time adult ordinary time earnings are $2,083.70 per week ($108,352 a year), according to the ABS. At that level, tax and Medicare would take roughly $27,000, leaving about $81,400 take-home.

What counts and what doesn't toward TSMIT

When an employer offers a TSMIT salary, only guaranteed base salary and fixed regular allowances count. Superannuation, bonuses, commissions, overtime, and non-monetary benefits (car, housing) are excluded. The employer must also pay the higher of the TSMIT or the market salary rate for the occupation.

Using the TSMIT salary in your own planning

If you're a job seeker or employee, the TSMIT figure can serve as a reference point for what a skilled role should pay. To estimate your own after-tax income, use the Clearance tool on this site. You can also check the Tax and Medicare page for the full rate tables and Medicare levy thresholds.

Remember that the Medicare levy has a shading-in range for singles: if your taxable income is between $28,011 and $35,013, you pay a reduced rate of 10c per dollar over the lower threshold. Above $35,013, the full 2% applies. For a TSMIT salary of $79,423, you are well above that, so the full levy is payable.

A note on superannuation

From 1 July 2026, the super guarantee is 12%. If your contract says '$79,423 plus super', your employer pays an additional $9,531 into your super account. That money is not part of your take-home pay, but it grows for your retirement. If the salary is advertised as 'total package including super', your base salary is about $70,914 – which would be below the TSMIT threshold, so that arrangement wouldn't meet the visa requirement.

Final thoughts

The TSMIT salary is a useful anchor for understanding how much you need to earn to meet visa obligations, but the same calculation applies to any Australian resident. Your take-home pay is always your gross salary minus tax and Medicare. For a $79,423 salary, you can expect around $63,500 to reach your bank account each year, or about $2,442 a fortnight.

For more detailed breakdowns by occupation and salary level, explore the Roles section. And if you're comparing job offers, always check whether the figure is inclusive of super and whether bonuses or allowances are guaranteed.