Pay Rise Calculator Australia 2025-26
About to start a new job, or just want to know what you actually take home.
Estimate an Australian pay rise after tax with AUD salary, marginal tax, superannuation, Medicare levy, and take-home pay impact.
Australia Pay Rise Notes
Australian pay rises change gross salary, PAYG withholding, Medicare levy exposure, superannuation contributions, and take-home pay by pay cycle.
Use the AUD version to compare annual, monthly, fortnightly, and weekly impact before weighing inflation, promotion scope, or negotiation options.
This page keeps Australian tax, Medicare levy, superannuation, and fortnightly pay language separate from UK National Insurance and US FICA wording.
Australian version note: this pay rise keeps the calculation anchored to AUD amounts, local product names, Australian tax language, and the way banks, employers, agencies, or advisers usually describe the inputs.
Local cues stay visible where they matter: ATO, PAYG, superannuation, Medicare levy, stamp duty, kilometres, comparison rate, APRA, Centrelink, GST, and Australian-dollar results are not rewritten into overseas vocabulary.
Use the output as an Australian estimate first, then sanity-check it against local quotes, lender criteria, government thresholds, state rules, or professional advice before relying on the number.
Uses 2025-26 ATO rates. Net increase = gross rise × (1 − marginal rate − Medicare).
Select the question that matches where you are right now.
Use this calculator to plan and model your financial situation.
Compare scenarios by adjusting inputs. Use the precision bar to reveal more detail. Results update in real time as you type.
Not professional financial advice, not a guarantee of any specific outcome, and not a substitute for qualified advice for significant decisions.
All calculations run entirely in your browser using standard formulas. No data is sent to any server.
The inputs that most influence this result are shown in the breakdown above. Even small changes to key variables can have a significant compound effect over time.
Longer periods amplify both growth and cost. Starting one year earlier or later can change a financial outcome by more than you expect.
Even a 1% change in rate can materially change the outcome over a long period. Use Standard or Advanced mode to model rate sensitivity.
Most financial variables have a non-linear relationship with the result — they compound. The sensitivity table in Advanced mode shows this clearly.
To improve this result, focus on the inputs with the highest leverage. Small changes to the right variable often produce much larger outcomes than large changes to less important ones.
Adjust inputs one at a time. The one that moves the result most is your binding constraint — focus effort there first.
Use the Scenario A/B feature in Advanced mode to compare two situations side by side.
Many financial decisions benefit from timing. Starting earlier, fixing a rate at the right moment, or clearing a debt before applying for new credit can each produce significant improvements.
Depending on what you are planning, these are the natural next steps after reviewing this result.
This calculator shows one part of a financial decision. The related calculators below help you model adjacent factors.
Switch to Standard or Advanced mode and use the scenario comparison tool to model best, expected, and worst case.
For decisions involving significant amounts of money, use this result as a starting point for a conversation with a qualified financial advisor.
How a pay rise affects your take-home pay
Why a pay rise is worth less than you think
A pay rise is taxed at your marginal rate — only the additional income above your current salary is taxed at the higher rate, not your full income. On a $100,000 salary (marginal rate 32.5%), a $10,000 pay rise produces approximately $6,750 in additional take-home pay after tax and Medicare.
| Current salary | Pay rise | Gross new salary | Net increase/yr | Net increase/mo |
|---|---|---|---|---|
| $60,000 | $5,000 | $65,000 | $3,750 | $313 |
| $80,000 | $5,000 | $85,000 | $3,250 | $271 |
| $100,000 | $10,000 | $110,000 | $6,750 | $563 |
| $120,000 | $10,000 | $130,000 | $5,700 | $475 |
| $150,000 | $15,000 | $165,000 | $8,550 | $713 |
Pay rise impact examples — 2025-26 ATO rates
These figures show the net after-tax increase for different pay rise scenarios.
| Salary | Pay rise (%) | Gross increase | Net increase/yr | Tax on rise |
|---|---|---|---|---|
| $70,000 | 5% | $3,500 | $2,363 | $1,138 (32.5%) |
| $80,000 | 5% | $4,000 | $2,700 | $1,300 (32.5%) |
| $100,000 | 5% | $5,000 | $3,375 | $1,625 (32.5%) |
| $100,000 | 10% | $10,000 | $6,750 | $3,250 (32.5%) |
| $130,000 | 5% | $6,500 | $3,705 | $2,795 (43%) |
How pay rises interact with Australian tax brackets
Only the marginal portion is taxed higher
Australia uses a progressive tax system — only income above each bracket threshold is taxed at that bracket's rate. A salary rise that pushes you from $134,999 to $140,000 does not mean you pay 37% on your entire income — only on the $5,001 above $135,000.
The HECS threshold
A pay rise that pushes your income above the HECS threshold ($54,435 in 2025-26) triggers compulsory HECS repayments for the first time. A rise from $50,000 to $58,000 is partly offset by the HECS repayment beginning at 1% of income.
2025-26 tax bracket reference
| Taxable income | Marginal rate | Effective rate |
|---|---|---|
| $0–$18,200 | 0% | 0% |
| $18,201–$45,000 | 19% | Variable |
| $45,001–$135,000 | 32.5% | Variable |
| $135,001–$190,000 | 37% | Variable |
| Above $190,000 | 45% | Variable |
Is your pay rise actually a pay rise? Inflation and real wages
Nominal vs real pay rise
A pay rise below the inflation rate is a real pay cut — your salary buys less than before even though the number is higher. Real pay rise = pay rise % − inflation rate %.
| Pay rise | Inflation (CPI) | Real pay change | Verdict |
|---|---|---|---|
| 2% | 3% | -1% | Real pay cut |
| 3% | 3% | 0% | Break-even |
| 5% | 3% | +2% | Modest real rise |
| 3% | 4.7% (2024) | −1.7% | Real pay cut |
| 7% | 4.7% (2024) | +2.3% | Real pay rise |
The last few years in Australia
Australian wage growth averaged 4–4.5% in 2023-24, while CPI peaked at 7.8% in late 2022 and remained above 4% through 2023. Many workers experienced real wage cuts during this period despite receiving nominal pay rises.
How to negotiate a pay rise effectively in Australia
Timing
Best times to negotiate: after a significant achievement, during your annual review, when you have a competing offer, or when you take on additional responsibilities. Avoid negotiating during company financial difficulties or immediately after a poor performance period.
Researching your market rate
Use salary surveys from SEEK, LinkedIn, Robert Half, Hays, or industry associations. The ABS Wage Price Index shows industry-level growth. Find the market rate for your specific role, experience level, and location — not just the broad job title.
The effective ask
Frame a pay rise request around value delivered, market rates, and future contribution — not personal financial need. 'The market rate for my role is $X; I have delivered Y and Z results; I am seeking $A' is more effective than 'I need more money because of rising costs.' Have specific figures ready; ranges suggest you will accept the lower end.
❓ Frequently asked Frequently asked questions
How much of a pay rise do I actually take home?
Only the additional income above your current salary is taxed at your marginal rate. At a $100,000 salary (32.5% marginal rate), a $10,000 pay rise produces approximately $6,750 more take-home pay after income tax and Medicare. The effective after-tax value is 67.5% of the gross rise.
Does a pay rise push me into a higher tax bracket?
Australia's progressive tax system means only income above each bracket is taxed at that rate. A rise from $130,000 to $140,000 puts $5,000 into the 37% bracket — only that $5,000 is taxed at 37%, not your entire salary. The concept of being 'pushed into a higher bracket' causing a net negative outcome is a myth.
Does a pay rise trigger higher HECS repayments?
Yes — HECS repayments increase with income. Moving from $85,000 to $95,000 moves you from a 3.5% to 4.5% HECS repayment rate (at these income levels in 2025-26). The additional HECS repayment reduces the net benefit of the pay rise.
What is a realistic pay rise to ask for in Australia?
Average wage growth in Australia is currently around 3.5–4.5% (2025). CPI is moderating toward 3%. A 'cost of living' rise should match or exceed CPI. A rise for performance, promotion, or market alignment typically ranges from 5–15%. Salary increases above 20% are uncommon outside of significant role changes or bidding wars.
Should I tell my employer about a competing offer?
Only if you are genuinely willing to leave. Counter-offers are common in tight labour markets, but accepting one can affect how management perceives your loyalty. If you use a competing offer as leverage, be prepared to follow through. Loyalty bonuses or spot increases without genuine role improvement often have short-term effects.
Where these figures come from
Income figures on this page are drawn from the Australian Taxation Office (ATO), the Fair Work Commission (minimum wage and awards), and the Australian Bureau of Statistics (national earnings).
- PAYG withholding & income tax rates — ATO — Individual income tax rates.
- Superannuation Guarantee rate — ATO — Super guarantee percentage.
- National minimum wage — Fair Work Ombudsman — Minimum wages.
- Average weekly earnings — ABS — Average Weekly Earnings.
- Medicare levy — ATO — Medicare levy.
Last checked: April 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.