What Actually Comes Out of Your Salary
Three separate things can reduce an Australian salary before it hits your bank account: income tax (progressive brackets), the Medicare Levy (a flat 2% for most people), and — if applicable — a HECS-HELP repayment. Superannuation is not one of them; it's paid on top by your employer, not deducted from your pay.
HECS-HELP: The New Marginal System (From 1 July 2025)
If you have a HECS-HELP debt, repayments changed significantly this year. The old system applied one flat percentage to your entire income once you crossed a threshold — creating a "cliff effect" where earning one dollar more could suddenly cost hundreds. The new system works like income tax brackets instead:
| Repayment Income | Rate |
|---|---|
| Up to $67,000 | Nil |
| $67,001 – $125,000 | 15% of the amount above $67,000 |
| Above $125,000 | $8,700 + 17% of the amount above $125,000 |
At $80,000 income, for example, the new system charges roughly $1,950 — down from about $3,600 under the old flat-rate rules. Most HECS debtors are meaningfully better off under this change.
Worked Example
| Item | Amount |
|---|---|
| Gross salary | $90,000 |
| Income tax | − $17,788 |
| Medicare Levy (2%) | − $1,800 |
| HECS-HELP (15% of $23,000 above $67K) | − $3,450 |
| Take-home pay | ≈ $66,962 |
Related Tools
Frequently Asked Questions
Doesn't include the Medicare Levy Surcharge (for high earners without private health cover) or other HELP loan types (VET, trade support). Assumes standard resident tax rates.