Calculate your annual take-home pay instantly. Includes tax bands, Medicare Levy: 2% on earnings above A$50,270.
Subtract HECS-HELP repayment, pension contributions, and any other deductions.
How the PA works and the high earner taper
The standard Tax-Free Threshold (A$18,200) for 2025/26 is A$12,570. This is the amount of income everyone can earn tax-free.
Example: If you earn A$35,000, only A$22,430 is taxable (A$35,000 - A$12,570).
For every A$2 you earn above A$100,000, your Tax-Free Threshold (A$18,200) is reduced by A$1.
At A$125,140: Your PA is completely removed. Higher earners pay tax on all income above this.
All loan plans and their repayment rates
| Loan Plan | Threshold | Repayment Rate |
|---|---|---|
| Plan 1 (Pre-2006) | A$24,990 | 9% |
| Plan 2 (2006-2012) | A$27,295 | 9% |
| Plan 4 (England, 2012+) | A$31,395 | 9% |
| Plan 5 (Scotland) | A$25,000 | 9% |
| Postgraduate | A$21,000 | 6% |
You repay 9% (or 6% for postgraduate) of anything you earn above your threshold. It's only owed if you're employed and earning above the threshold.
Legitimate ways to minimize your tax liability
Pension contributions are deducted from your gross salary before tax, giving you immediate tax relief. Contributing more reduces your taxable income.
Individual Savings Accounts (ISAs) let you save up to A$20,000 per year tax-free. All interest and dividends are tax-exempt.
If you're self-employed, claim all business expenses. Ensure you're receiving all entitled allowances (Marriage Allowance, etc.).
When donating to charity, use Gift Aid. The charity recovers tax, and if you're a higher earner, you may claim additional relief.
If earning near your HECS-HELP threshold, consider whether extra income will significantly increase repayments.
Work with an accountant or tax advisor to optimize your tax position, especially if you have multiple income sources.
Common questions about Australian income tax