Two directions, one set of rules
Gross to net is the familiar direction: start with a salary, subtract income tax, the Medicare levy and any HELP repayment, and what remains is your take-home pay.
Net to gross is what you need when budgeting, negotiating or moving between jobs: “I need $1,800 a week to cover my rent and bills — what salary is that?” There is no simple formula because Australian tax is progressive, so the calculator searches for the salary that produces your target after every rule is applied, to the cent.
Worked example: $1,800 a week in hand
Target: $1,800 a week after tax, 2026–27, no HELP
To receive $1,800 a week you need a salary of $123,706 before tax. Of that, $30,106 a year goes in income tax and the Medicare levy.
- Salary before tax per year
- $123,706
- Take-home per year
- $93,600
- Hourly rate (38 hrs)
- $62.60
| Item | Year | Month | Fortnight | Week |
|---|---|---|---|---|
| Gross pay | $123,705.60 | $10,308.80 | $4,757.91 | $2,378.95 |
| Income tax | −$27,631.50 | −$2,302.63 | −$1,062.75 | −$531.38 |
| Medicare levy and surcharge | −$2,474.10 | −$206.17 | −$95.16 | −$47.58 |
| Take-home pay | $93,600.00 | $7,800.00 | $3,600.00 | $1,800.00 |
With a HELP debt the same $1,800 a week requires $140,104, because the repayment is taken out of pay before it reaches you.
Why the gap widens as pay rises
On a salary of $60,000 you keep 68 cents of each extra dollar (30% tax plus 2% Medicare). That rate holds all the way to $135,000, then drops to 61 cents, and above $190,000 to 53 cents. If you do not hold private hospital cover, crossing $105,000 for MLS purposes in 2026–27 triggers the Medicare levy surcharge on your whole income — the one place where earning a little more can leave you with less. Cover or a slightly smaller salary sacrifice can fix it.
What changed for 2026–27
The cut from 16% to 15% on the $18,201–$45,000 bracket means you need a slightly lower salary than last year to take home the same amount. For a $1,500 weekly target, the required salary is about $394 lower than in 2025–26 — the $268 tax saving grossed up at the 32% marginal rate. HELP borrowers benefit twice: the repayment threshold rose to $69,528.
Tips for using the result
- Negotiate on the gross figure, not the take-home, and confirm whether it includes super.
- Leave a margin. Your employer’s withholding can differ by a few dollars a pay from the annual calculation, and things like a second job or investment income change your tax.
- Check salary sacrifice in the pay calculator; it reduces take-home pay by less than the amount sacrificed.