What Is a Mechanical Engineer Salary in Australia? Gross Pay, Super and Tax
Find out how a mechanical engineer salary compares to national benchmarks, including gross pay, superannuation, and tax. Based on ABS and Jobs and Skills Australia data.
The median weekly earnings for mechanical engineers are not publicly reported, but industry benchmarks suggest a typical full-time mechanical engineer earns well above the national index of 100, likely between 110 and 150 depending on industry and experience.
What Does ‘Mechanical Engineer Salary’ Mean?
When people search for a mechanical engineer salary, they usually want to know the typical gross pay for this occupation in Australia. The keyword covers everything from award minimums to market rates, and how that pay compares to national benchmarks. This article uses the latest public data from the Australian Bureau of Statistics and Jobs and Skills Australia to explain where a mechanical engineer’s earnings sit on the Salary Index, and what happens after super and tax.
The National Benchmark: Index 100
The Salary Index sets 100 as the full-time adult ordinary-time earnings figure from the ABS Average Weekly Earnings survey. In May 2026, that was $2,083.70 per week, or $108,352 annualised. Men earned $2,181 per week (index 104.7) and women $1,934.50 (index 92.8). Any occupation or industry can be compared to this line. For example, the national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, annualised $52,255 – an index of just 48.2.
Where Does a Mechanical Engineer Sit?
Jobs and Skills Australia’s profile for mechanical engineers (ANZSCO 233512) shows 22,900 employed, 90% full-time, with average full-time hours of 43 per week. However, the median weekly earnings field is marked N/A – the data is not publicly available from that source. That doesn’t mean we can’t estimate. Mechanical engineers work mainly in Professional, Scientific and Technical Services (industry index 114.7), Manufacturing, and Mining (index 154.7). Using those industry benchmarks, a typical mechanical engineer in professional services might earn around $124,300 annualised, while one in mining could earn $167,600. These are broad averages, not a specific role or award classification.
State also matters. The on-site reference shows Western Australia at index 106.9 ($115,825 annualised) and the ACT at 109.9 ($119,090), reflecting higher pay in those regions. A mechanical engineer in WA mining would likely be at the top end.
Gross Pay, Super and Tax: A Worked Example
Let’s take a hypothetical mechanical engineer earning $120,000 gross per year. That’s about $2,308 per week, giving an index of 110.7 – above the national line. Superannuation is paid on top at 12% from 1 July 2026, so the employer contributes $14,400 to super (within the $270,830 maximum contribution base). The employee’s take-home pay after tax (2026–27 resident rates plus 2% Medicare levy) is roughly $88,133, or $1,695 per week. That’s an after-tax index of about 81.3 relative to the gross national line – a reminder that tax and Medicare take a slice.
If the same engineer worked under a modern award, say the Professional Employees Award, the minimum rate for a higher classification might be around $45–$50 per hour, but most mechanical engineers are above award. The Fair Work Commission’s Modern Awards Pay Database sets the legal floor, but market rates are higher.
How the Salary Index Helps
The Salary Index converts yearly gross pay into a single number: your annual salary divided by the national line ($108,352) times 100. So a $120,000 salary gives an index of 110.7. You can compare that to industry indices like Professional, Scientific and Technical (114.7) or Mining (154.7). It’s a quick way to see if you’re above or below the average for your field.
What About Casual or Part-Time?
Jobs and Skills Australia reports that 10% of mechanical engineers work part-time. Casual employees get a loading (typically 25% on top of the base rate, but the national minimum wage casual loading example is $33.05 per hour). Part-time and casual engineers will have lower annualised earnings, but the index still works the same way – compare weekly or hourly to the national line.
Key Takeaways
- The median mechanical engineer salary is not officially published, but industry and state benchmarks suggest an index between 110 and 150.
- Super is 12% on top of gross pay, not included in the index.
- Tax and Medicare reduce take-home pay significantly – the example above shows about 73.4% of gross after tax.
- For award-covered engineers, minimum rates rose 4.75% from 1 July 2026.
For more detail on how pay compares across Australia, see the states page or read about how the index works. If you’re looking at a specific award, the pay guides section can help you find the right classification.
Questions people ask
What is the average mechanical engineer salary in Australia?
There is no single published average for mechanical engineers in the latest official data. Jobs and Skills Australia lists median weekly earnings as N/A. However, using industry benchmarks, a mechanical engineer in professional services might earn around $124,000 annualised (index 114.7), while one in mining could earn over $167,000 (index 154.7). The national full-time adult ordinary-time earnings are $108,352 (index 100).
How is superannuation calculated on a mechanical engineer salary?
Superannuation is paid on top of your gross salary at the super guarantee rate of 12% from 1 July 2026, up to a maximum contribution base of $270,830. For example, on a $120,000 salary, your employer would contribute $14,400 to your super fund. This is not included in the salary index figure, which uses gross ordinary-time earnings only.
What tax will a mechanical engineer pay in 2026–27?
For a resident earning $120,000 gross, tax is calculated using the 2026–27 brackets: nil up to $18,200, 15% on the next $26,800, 30% on the next $90,000 (to $135,000), plus a 2% Medicare levy. On $120,000, the tax (excluding Medicare) is approximately $29,467, plus Medicare $2,400, leaving about $88,133 after tax. This is an estimate ignoring HELP or other adjustments.