Your salary details
Income
Deductions & levies
Annual take home pay
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Gross salary—
Salary sacrifice—
Income tax—
Medicare levy (2%)—
HECS/HELP repayment—
Superannuation (employer)—
Take home pay—
Annual
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per year
Monthly
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per month
Fortnightly
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per fortnight
Weekly
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per week
Australian tax tips
Salary sacrifice reduces tax
Contributing to super via salary sacrifice reduces your taxable income, saving you tax at your marginal rate. Super contributions are taxed at just 15% — much lower than most people's marginal rates of 32.5% or higher.
HECS repayments are automatic
HECS/HELP repayments are automatically deducted via the tax system once your income exceeds the threshold (~$54,435 in 2025-26). The repayment rate increases with income. Your debt is not charged interest but is indexed to CPI annually.
Claim your deductions
Work-related expenses, home office costs, professional development, tools and subscriptions may all be tax deductible. Good record-keeping throughout the year means more deductions at tax time — use the MyDeductions tool in the ATO app.
The low income tax offset
Australians earning under $66,667 receive the Low Income Tax Offset (LITO) of up to $700. Those earning under $37,500 also receive the Low and Middle Income Tax Offset (LMITO). These automatically reduce the tax you pay.
Working from home claims
If you work from home, you can claim home office expenses. The ATO's fixed rate method allows you to claim 67 cents per hour worked from home for running expenses. Keep a diary of your work-from-home hours.
Lodge on time
The tax return deadline is 31 October for most Australians lodging their own return. If using a tax agent, you may get an extension. Late lodgement penalties can apply even if you are due a refund.
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Frequently asked questions
How much tax do I pay on $85,000 in Australia?
On a $85,000 salary in 2025-26, you pay approximately $18,517 in income tax plus $1,700 in Medicare levy, giving total tax of around $20,217. Your take-home pay (excluding super) is approximately $64,783 per year or $5,399 per month. Use our calculator above for an exact figure.
What is the Medicare levy in Australia?
The Medicare levy is 2% of your taxable income and funds Australia's public healthcare system. Most Australian residents pay the full 2%. Low-income earners may be exempt or pay a reduced rate. Some people also pay the Medicare Levy Surcharge (1-1.5%) if they don't hold private hospital cover and earn over $93,000.
Is superannuation included in my salary?
In Australia, superannuation is paid on top of your salary by your employer — it is not deducted from your take-home pay. The super guarantee rate is 12% from 1 July 2025. However, if your employment contract states your salary is "inclusive of super" (total package), then super is deducted from your total package amount.
What is the tax-free threshold in Australia?
The tax-free threshold is $18,200. If you earn below this amount you pay no income tax. For residents, the Low Income Tax Offset (LITO) effectively extends this to around $21,884 before tax becomes payable. You should claim the tax-free threshold from your primary employer to avoid being overtaxed throughout the year.
How do I calculate my weekly take home pay?
Calculate your annual take-home pay (gross salary minus income tax, Medicare levy and any HECS repayments) and divide by 52 for weekly pay, or by 26 for fortnightly pay. Our calculator above does this automatically and shows all periods at once.