How the ATO Salary Calculator Shows Where Your Pay Sits on the Australian Salary Index

What is the ATO salary calculator?

The ATO salary calculator is a free online tool from the Australian Taxation Office that estimates how much tax and Medicare levy you’ll pay on your salary, and what your take-home pay will be. It uses the current resident tax rates and a flat 2% Medicare levy, assuming you claim the tax-free threshold. It does not account for HELP repayments, salary sacrifice, or the Medicare levy surcharge.

For anyone trying to understand where their pay sits on the Australian salary index, the ATO salary calculator is a useful first step. The salary index compares your gross annual ordinary-time earnings to the national line of $108,352 (index 100), based on the ABS Average Weekly Earnings for May 2026. Once you know your gross salary, you can calculate your index number and see how it stacks up against the national average, your state, or your industry.

How to use the ATO salary calculator with the salary index

Start by entering your gross annual salary into the ATO salary calculator. It will show you the estimated tax and net pay. For example, if you earn $80,000 a year, the calculator will estimate your tax and Medicare at roughly $16,000, leaving about $64,000 net. That gross of $80,000 gives a salary index of 73.8 (80,000 ÷ 108,352 × 100). That is well below the national line of 100, and close to the retail trade industry index of 75.9.

If you earn $120,000 gross, the calculator will show higher tax. Your index would be 110.8, above the national line and similar to the professional, scientific and technical industry index of 114.7. If you earn the national minimum wage of $52,255 (index 48.2), the calculator will show a net pay of about $44,000 after tax and Medicare.

Where your pay sits on the Australian salary index

The salary index is a simple ratio: your gross yearly ordinary-time earnings divided by $108,352, times 100. The Salary Index page explains the full method. The national line of 100 represents the average full-time adult ordinary-time earnings. Men average $113,412 (index 104.7) and women average $100,594 (index 92.8).

State indexes vary widely. The states page shows New South Wales at 101.2, Victoria at 98, Queensland at 97.9, South Australia at 94.6, Western Australia at 106.9, Tasmania at 88.6, Northern Territory at 95.2, and the ACT at 109.9. If you live in WA and earn $115,825, your index is 106.9, matching the state average. If you live in Tasmania and earn $96,000, your index is 88.6, matching the state average.

Industry indexes also give a quick benchmark. Mining sits at 154.7, retail trade at 75.9, accommodation and food services at 72.5, professional services at 114.7, education at 105.5, and health care at 97.8. The industries page has more. If your index is 97.8, you are in line with health care and social assistance.

How the ATO salary calculator helps with take-home comparisons

Gross pay is what you earn before tax, but net pay is what you actually get. The ATO salary calculator shows the effect of tax and Medicare. For example, a gross of $108,352 (index 100) gives a net of about $82,000 after tax and Medicare. A gross of $52,255 (national minimum wage index 48.2) gives a net of about $44,000. The calculator is especially useful if you are comparing job offers or award rates. The how the index works page explains why we use gross ordinary-time earnings, not net.

Award minima rose 4.75% from 1 July 2026. The national minimum wage is $26.44 per hour, $1,004.90 per week, annualised $52,255. Entry-level award floor is $25.74 per hour. The ATO salary calculator can estimate the net for those rates. Casual loading is $33.05 per hour, which would annualise to about $68,744 (index 63.4) for a 38-hour week. The calculator will show the net for that casual rate.

Important caveats

The ATO salary calculator is an estimate. It ignores HELP repayments, salary sacrifice, the Medicare levy reduction, and the Medicare levy surcharge. It also assumes you have no other income or deductions. The salary index is based on gross ordinary-time earnings, not total remuneration including super. Super guarantee is 12% from 1 July 2026, but that is not included in the index. The calculator does not show super either.

For junior rates, the national minimum wage percentages apply: under 16 $9.73/hr, 16 years $12.51/hr, 17 $15.28/hr, 18 $18.06/hr, 19 $21.81/hr, 20 $25.83/hr. A modern award can set different junior rates. The ATO salary calculator uses the adult rates, so for a 20-year-old on the junior rate, you would need to annualise the actual hourly rate and then use the calculator.

The ATO salary calculator and your personal index

To see where your pay sits on the Australian salary index, you need your gross annual ordinary-time earnings. If you only know your net, you can use the ATO salary calculator in reverse: try different gross figures until the calculator shows your desired net. Then divide that gross by $108,352 and times 100. For example, if your net is $70,000, you might need a gross of about $100,000 to get that net. That gives an index 92.3. That is below the national line.

For more reading, see the topics page for more on salary comparisons.

FAQs

How does the ATO salary calculator relate to the salary index?

The ATO salary calculator estimates take-home pay after tax and Medicare. The salary index compares gross earnings to $108,352 (index 100). Use the calculator confirm gross figure then compute dividing gross $108,352 multiplying 100.

What tax rates does the ATO salary calculator use for 2026–27?

For residents claiming tax-free threshold: nil $18,200, 15% $45,000, 30% $135,000, 37% $190,000, 45% above. Flat 2% Medicare levy. These rates match Australian Tax Office schedule.

Can the ATO salary calculator help find my salary index if only net pay?

Yes, indirectly. If you know net pay, use calculator reverse estimate gross produce that net. Then divide gross $108,352 multiply 100 get index. However, calculator estimate assumes no deductions offsets actual gross may differ.