Every number on PayAfterTax comes from published rules. This page lists what each calculator uses and the assumptions it makes, so you can check our work.
Income tax
We use the Australian Taxation Office's resident tax rates for 2026–27: nil to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above. The low income tax offset (up to $700, phasing out by $66,667) is applied. Unless a page says otherwise, we assume you are a resident for the full year, claim the tax-free threshold, have one job and no deductions.
Medicare levy
A 2% levy on taxable income, reduced for low incomes. The ATO hasn't yet published the 2026–27 low-income thresholds, so we use the 2025–26 thresholds of $28,011 and $35,013 until it does. The Medicare levy surcharge isn't included.
HECS-HELP
Compulsory repayments use the marginal system that began on 1 July 2025. For 2026–27, nothing is repaid up to $69,528 of repayment income, then 15c per dollar to $129,717, then $9,028 plus 17c per dollar to $186,050, and 10% of total repayment income above that. Indexation of 2.8% was applied on 1 June 2026. Payoff projections assume the indexation rate and pay rise you choose.
Super
Employer super is shown at the 12% superannuation guarantee rate, paid on top of salary unless you tell us your package includes it.
Redundancy, notice and leave
Redundancy pay and notice follow the National Employment Standards in the Fair Work Act 2009. Annual leave is 4 weeks a year of ordinary hours (5 for eligible shiftworkers). The tax-free part of a genuine redundancy for 2026–27 is $13,598 plus $6,801 for each completed year of service. Awards and agreements can give you more than these minimums.
Rounding and periods
We calculate on annual amounts and divide by 52 weeks, 26 fortnights or 12 months. The tax your employer withholds from each pay uses the ATO's withholding schedules and can differ by a few dollars. Your actual tax is worked out when you lodge your return.
Sources
- ATO: Tax rates for Australian residents
- ATO: Study and training loan repayment thresholds
- ATO: Employment termination payment thresholds
- Fair Work Ombudsman
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