1. What is Net Pay?

Net pay is the amount of money you take home after all deductions (taxes, Medicare levy, etc.) have been subtracted from your gross pay. It's your actual disposable income.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Pay — Your total annual salary before deductions
• Income Tax — Calculated based on Australian tax brackets
• Medicare Levy — Standard 2% of gross income

3. Australian Tax Brackets 2024-25

Tax Rates:

• 0% up to $18,200
• 19% for $18,201 - $45,000
• 32.5% for $45,001 - $120,000
• 37% for $120,001 - $180,000
• 45% for $180,001 and over

4. Using the Calculator

Instructions: Enter your gross annual salary in AUD. The calculator will automatically compute your income tax, Medicare levy, and net pay.

5. Frequently Asked Questions (FAQ)

Q1: Does this include the Medicare Levy Surcharge?
A: No, this calculator only includes the standard 2% Medicare Levy. Higher income earners may need to pay additional surcharge.

Q2: Are other deductions included?
A: No, this only calculates tax and Medicare. Other deductions like HECS/HELP, superannuation, etc. are not included.

Q3: Is this calculator accurate for part-time workers?
A: Yes, as long as you enter your annual gross pay, it will calculate correctly regardless of hours worked.

Q4: How often are tax brackets updated?
A: Tax brackets are typically adjusted annually to account for inflation.

Q5: What about tax offsets and deductions?
A: This calculator provides a basic estimate. For precise calculations, consult a tax professional.