How does the Medicare levy affect my annual pay?

The Medicare levy is generally 2% of your taxable income. For 2025–26, single reduction thresholds apply (the 2026–27 thresholds were not confirmed here). If your taxable income is below a certain amount, the levy may be reduced or waived. This calculator applies the full 2% levy for simplicity.

Does the calculator account for casual loading?

Yes. The timesheet has a checkbox to add 25% casual loading on top of your base hourly rate. Do not type a rate that already includes casual loading. The loading is applied separately, as per Fair Work Ombudsman rules for award-covered casual employees.

What Is NFP Salary Packaging and How It Affects Your Hourly to Annual Pay

Q: What is NFP salary packaging?

NFP salary packaging (also called salary sacrificing) lets employees of not-for-profit organisations pay for certain expenses with pre-tax income, reducing their taxable income. Common items include mortgage or rent, car costs, and meals. It can increase take-home pay but is not included in this calculator because it varies by employer and FBT rules.

Based on a 38-hour week, your annual gross pay is your hourly rate × 38 × 52, with super paid on top.

Converting Your Hourly Rate to Annual Pay

To work out your annual gross pay, multiply your hourly rate by the number of hours you work each week, then by 52 weeks. For a standard full-time role, we assume 38 hours per week, as set by the Fair Work Commission. The formula is:

Annual gross ≈ hourly rate × hours per week × 52

For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour. For 38 hours, that gives $1004.90 per week and $52,254.80 per year. If you are a casual employee, your rate includes a 25% casual loading, making it $33.05 per hour (the calculator has a checkbox to add this loading on top of your base rate – never type a rate that already includes it).

Fortnightly Pay

If you are paid fortnightly, multiply your weekly gross by 2. Using the minimum wage example, a fortnightly gross would be $2009.80 before tax and super.

Distinguishing Minimum Wage, Award Rates, and Casual Loading

The National Minimum Wage is the legal floor for most employees. Many industries have award rates that are higher, set by the Fair Work Ombudsman. Casual employees usually receive a 25% loading instead of paid leave. Superannuation is paid on top of your ordinary earnings at 12% (for 2026–27), up to the maximum contribution base of $270,830 per year.

Tax and Medicare Levy on Your Annual Figure

Once you have your annual gross, you can estimate tax using the 2026–27 resident tax rates:

Nil on the first $18,200
15% on income from $18,201 to $45,000
30% on income from $45,001 to $135,000
37% on income from $135,001 to $190,000
45% on income above $190,000

The Medicare levy is generally 2% of your taxable income. This calculator uses the 2025–26 single reduction thresholds because the 2026–27 thresholds were not confirmed here. The levy is applied after the tax-free threshold.

What Is NFP Salary Packaging?

If you work for a not-for-profit (NFP) organisation, you may be able to salary package (or salary sacrifice) part of your income. This means you use pre-tax dollars to pay for certain expenses like rent, mortgage, or car costs, reducing your taxable income. For example, if you earn $70,000 and package $15,000, you only pay tax on $55,000. This can significantly boost your take-home pay.

Important: This calculator does not deduct salary packaging because it varies by employer, FBT rules, and your personal situation. For a more accurate estimate, see our super and packaging page.

Superannuation Paid on Top

Your employer must pay super guarantee contributions of 12% of your ordinary earnings, on top of your salary. This is not deducted from your pay. For example, on a $70,000 annual salary, your super contribution would be $8,400 per year, up to the maximum contribution base of $270,830.

Using the Timesheet and Other Tools

Our timesheet lets you enter your base hourly rate and optionally add casual loading. The result shows your weekly, fortnightly, and annual gross, plus estimated tax, Medicare, and super. For more detailed pay guides, visit our pay guides page. You can also check reference tables for award rates and average pay figures from the Australian Bureau of Statistics (ABS).

Average Weekly Earnings

The ABS Average Weekly Earnings for May 2026 show full-time adult ordinary time earnings of $2083.70 per week. All employees (including part-time) average $1579.20 per week. These are averages, not a median for any specific job.

Disclaimer

Annual pay here is hourly rate × hours per week × 52. It assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base. Tax is the 2026–27 resident scale with the full tax-free threshold. Medicare uses the 2025–26 single reduction thresholds because the 2026–27 reduction thresholds were not confirmed here. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

For more on take-home pay and salary packaging, see our take-home pay page.