How pay after tax works in Australia
Australia has no state income tax, so your take-home is driven by federal income tax and the 2% Medicare levy. Income tax uses a tax-free threshold followed by rates of 16%, 30%, 37% and 45%, and the low income tax offset (LITO) reduces the tax for lower earners. This keeps the system simpler to follow than federations that tax at two levels.
Superannuation is paid by your employer on top of your salary (not deducted from it), and if you have a HELP or HECS study loan a repayment is worked out from your income. The calculator applies income tax, the Medicare levy, LITO and any study loan, and shows super separately so you can see both.
What this calculator works out
- Income tax on the resident scale
- The 2% Medicare levy
- The low income tax offset (LITO)
- Superannuation and HELP/HECS study-loan repayments