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How to Calculate Australian Take-Home Pay (2024/25)

ATO income tax, Medicare Levy and superannuation explained with worked examples.

📖 5 min read  ·  Updated May 2025  ·  FinanceAustraliaATO

Your Australian take-home pay is your gross salary minus income tax, the Medicare Levy, and HECS/HELP repayments if applicable. Superannuation (super) is paid on top of your salary by your employer — it doesn't come out of your take-home pay.

2024/25 Australian Income Tax Brackets

The Stage 3 tax cuts took effect on 1 July 2024, reducing rates and adjusting brackets significantly:

  • 0% on the first $18,200 (tax-free threshold)
  • 16% on $18,201–$45,000
  • 30% on $45,001–$135,000
  • 37% on $135,001–$190,000
  • 45% on over $190,000

Example — $85,000 salary: 0% on $18,200 = $0. 16% on $26,800 = $4,288. 30% on $40,000 = $12,000. Total income tax = $16,288. Effective rate = 19.2%.

Medicare Levy

The Medicare Levy is 2% of taxable income for most Australian residents, funding the public health system. On $85,000: Medicare Levy = $85,000 × 2% = $1,700. Low-income earners below the threshold ($26,000 for singles in 2024/25) are exempt. The Medicare Levy Surcharge (additional 1–1.5%) applies to higher earners without private hospital cover.

Superannuation

Superannuation (super) is Australia's compulsory retirement savings scheme. Employers must pay 11.5% of your ordinary time earnings into your super fund (rising to 12% in July 2025). Super is paid on top of your salary — it doesn't reduce your take-home pay. However, salary sacrifice arrangements can reduce your taxable income.

HECS/HELP Repayments

If you have a HECS or HELP debt (university loans), repayments are made through your tax return once your income exceeds the repayment threshold ($54,435 in 2024/25). The repayment rate starts at 1% and increases progressively with income. On $85,000, the repayment rate is approximately 4.5%, meaning around $3,825/year in student loan repayments.

Calculate your exact AU take-home pay with 2024/25 ATO rates.

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Frequently Asked Questions

What are the Australian income tax rates for 2024/25?
0% up to $18,200 (tax-free); 16% on $18,201–$45,000; 30% on $45,001–$135,000; 37% on $135,001–$190,000; 45% over $190,000. These reflect the Stage 3 tax cuts effective from 1 July 2024.
What is the Medicare Levy?
The Medicare Levy is a 2% charge on taxable income for most Australian residents, funding Medicare (the public health system). It is separate from income tax. Low-income earners are exempt and there is a Medicare Levy Surcharge for higher earners without private hospital insurance.
Does superannuation come out of my take-home pay?
No — the employer Superannuation Guarantee (11.5% in 2024/25, rising to 12% in July 2025) is paid in addition to your salary. However, salary sacrifice arrangements allow you to voluntarily contribute pre-tax salary to super, which reduces your taxable income.
When do I need to file a tax return in Australia?
The Australian tax year runs from 1 July to 30 June. Tax returns are typically due by 31 October for individuals lodging their own return. If you use a registered tax agent, the deadline is extended. The ATO processes most refunds within 2 weeks for online lodgements.
What is the tax-free threshold in Australia?
The tax-free threshold is $18,200 — the first $18,200 of income is taxed at 0%. Australian residents can claim this threshold, meaning the first $18,200 is tax-free. Non-residents do not receive the tax-free threshold and are taxed at 32.5% from the first dollar.